Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa Diallo, Boubacar Tchana Tchana, Fulbert Zeufack, Albert G. 2017-01-04T20:43:03Z 2017-01-04T20:43:03Z 2016-12
dc.description.abstract This paper explores the landscape, contributions, and determinants of sovereign wealth funds' long-term investments in Sub-Saharan Africa. The study finds that of all regions, Africa receives the lowest share of investment from sovereign wealth funds, and the landscape is dominated by Asian funds. The investment strategies of sovereign wealth funds established by African countries tend to be to invest less domestically and more abroad, contrary to Asian funds. In addition, using an enriched simple mean-variance portfolio model with an exponential utility function, the analysis shows that the investment rate of return and political connections have a positive and significant effect on sovereign wealth fund investments, and risk exerts a negative but not significant effect. The paper confirms these results empirically, using a database that includes 26 sovereign wealth fund investments over 1985-2013. Hence, sovereign wealth funds investing in Africa care more about high returns and the political interests of their country of origin than the risk of their investment. en
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 7903
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.subject sovereing wealth funds
dc.subject investment
dc.subject investment portfolio
dc.subject economic model
dc.subject risk
dc.subject returns
dc.subject political interests
dc.title Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.crossref.title Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa 2016-12-05
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.identifier.doi 10.1596/1813-9450-7903
okr.identifier.externaldocumentum 090224b08477b46c_1_0
okr.identifier.internaldocumentum 26997407 WPS7903
okr.imported true
okr.language.supported en
okr.pdfurl en
okr.region.administrative Africa
okr.region.geographical Sub-Saharan Africa
okr.statistics.combined 2864
okr.statistics.dr 736301480964634718
okr.statistics.drstats 2178
okr.topic Finance and Financial Sector Development :: Capital Markets and Capital Flows
okr.topic Finance and Financial Sector Development :: International Financial Markets
okr.topic International Economics and Trade :: Foreign Direct Investment
okr.topic Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.unit Off of Sr VP Dev Econ/Chief Econ (DECVP)
relation.isAuthorOfPublication 83529956-4c02-5ee8-99c9-d6e9ab43f3a8
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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