African state-owned institutions are managing a record $1 trillion in assets, according to the latest report from sovereign fund tracker GlobalSWF. This growth reflects the continent’s increasing reliance on domestic investment amid reductions in concessional finance and foreign aid. Public pension funds, central banks, and sovereign wealth funds are playing a key role in mobilizing these resources to support economic development and attract investment into Africa.
The majority of assets are held by pension funds and central banks, but sovereign wealth funds are also expanding rapidly. In 2025 alone, five new sovereign wealth funds were launched, including Botswana’s BSWF, the Democratic Republic of Congo’s FIS-RDC, Eswatini’s ESWF, Kenya’s KSWF, and Nigeria’s Oyo State OSWF. The Libyan Investment Authority remains the largest, managing $68 billion, among roughly 33 sovereign wealth funds across Africa.
Despite this growth, Africa’s sovereign wealth funds represent just 1% of the $14.3 trillion in assets held globally by such funds. Meanwhile, foreign direct investment (FDI) in Africa has shown volatility. A UN report highlighted a 75% increase in FDI in 2024, reaching $97 billion, but investments declined by 42% in the first half of 2025 due to trade tensions, high interest rates, and geopolitical uncertainty.
The rise in domestic state-managed assets underscores Africa’s strategic shift toward leveraging internal financial resources to drive development, reduce dependence on external aid, and foster long-term economic resilience.
