African countries urged to tap into trillions packed in sovereign wealth funds
Author(s)/Corporate Author (s)United Nations. Economic Commission for Africa.;
MetadataShow full item record
African countries have been urged to find ways to tap into the US $5 trillion Sovereign Wealth assets belong to oil-exporting developing countries as well as China. Participants at a session on investments held this week during UNCTADXIII were told that these funds grow at an average of 10 per cent every year and would constitute a real source for development resources that Africa needs. “Of the $5 trillion, only about $110 million goes into Foreign Direct Investments; these vast quantities of funds, present an opportunity for Africa to accelerate development, strengthen economies, create jobs and improve the lives of our people,” said participants. The discussions this week come in the wake of increased interest in Africa’s investment potential, fueled in part by the commodity boom, steady economic growth and improved macro-economic governance according to Alan Kyerematen, Head of the Africa Trade Policy Centre at the Economic Commission for Africa. In addition, with progress underway towards the creation of a Continental Free Trade Area (CFTA), prospects remain higher than ever, that the continent can significantly boost intra African trade.