Latest news with #FondsSouveraindeDjibouti
Zawya
09-04-2025
- Business
- Zawya
Djibouti Forum calls for optimism and greater collaboration amidst policy-induced global turbulence
DJIBOUTI City, Djibouti-/African Media Agency(AMA)/- Global turbulence, much of it self-inflicted, dominated discussions at the second edition of the Djibouti Forum. Nonetheless, business leaders appeared relatively optimistic, and this wakeup call may turn out to be a good omen for the continent. This year's Djibouti Forum convened over 150 international guests from 51 countries, including institutional investors overseeing more than $2.6 trillion in cumulative assets. A common thread throughout the discussions was the need for greater strategic partnerships as well as a call for greater domestic resource mobilisation, allowing pension funds and sovereign wealth funds to take greater risks. Prime Minister Abdoulkader Kamil Mohamed declared that Djibouti was ready to diversify its economy beyond its well-established ports and logistics sector, which he described as 'one of the most efficient and sophisticated in Africa.' 'Renewable energy, the digital economy, tourism, and financial services are all at the heart of this next chapter. We're looking for access to capital, expertise, and partners who share our long-term vision.' The Prime Minister reassured investors of Djibouti's unwavering commitment to maintaining peace and fostering economic and political stability. 'The pillar of our strategy in Djibouti is stability. Our currency, pegged to the dollar since 1949, offers investors a degree of stability that is rare in Africa,' he remarked. Dr. Slim Feriani, CEO of the Fonds Souverain de Djibouti (the country's sovereign wealth fund), emphasised the fund's readiness to co-invest alongside international investors in key projects. 'The FSD will partner with all of you, taking equity stakes and essentially putting skin in the game. We want to double our assets under management in the next five years, and we know that we cannot do this alone,' he noted. Feriani highlighted the potential for attractive returns on investment for private players in Djibouti. 'Investors here have seen positive returns,' he explained, while acknowledging the need for sustained reforms to further attract private investment. 'The private sector is a force for good, which needs positive regulations to create a conducive environment.' The two-day forum featured over 50 high-level speakers, engaging in discussions on topics such as privatization, public-private partnerships, and priority economic sectors including technology, connectivity, energy, tourism, financial services, and logistics. The event facilitated lively debates among leading economists, policymakers, and investors about the macroeconomic landscape in Djibouti and across Africa. Dr. Acha Leke, Senior Partner & Chairman of McKinsey & Company, Africa, expressed optimism regarding Africa's economic prospects despite challenges such as high indebtedness and unequal economic growth across countries. 'Despite all its challenges, Africa is home to approximately 345 businesses valued at over $1 billion, with cumulative revenues around $1 trillion,' he stated. Lionel Zinsou, former Prime Minister of Benin and co-founder of SouthBridge, identified the emergence of philanthropic capital as a crucial opportunity for Africa. 'There is a new important partner in blended finance, which is the partnership of the public and private sectors with philanthropy. They are prepared to de-risk investments and to supply grants, which helps lower the costs and interest rates for projects,' he said. Dr. Samuel Maimbo, former World Bank Vice President, commended the FSD for creating a collaborative platform for institutional investors in Africa. 'The idea of having an African sovereign wealth fund working with other SWFs is the start of a good conversation. We must stop this cycle of aid and debt. We know how the story ends. It is time to pivot to hope and prosperity.' The Djibouti Forum was hosted by the Sovereign Wealth Fund of Djibouti (Fonds Souverain de Djibouti), established in March 2020 and now under the stewardship of CEO Dr. Slim Feriani, a former Tunisian Minister with over 30 years of experience in international capital markets. Distributed by African Media Agency. on behalf of IC Publications -Ends- About the Djibouti Forum: Convened by the Sovereign Wealth Fund of Djibouti (Fonds Souverain de Djibouti), this two-day event is a global platform to accelerate investment in fast-growing emerging markets. This Forum highlights the potential and prospects of Djibouti as well as the African continent. It facilitates dialogue and collaboration among key stakeholders from the public and private sectors, as well as the SWF and institutional investment community. The Forum is not only showcasing interesting investment opportunities in the country but is also bringing together CEOs, investors and developers to foster collaboration amongst like-minded individuals and catalyse strategic investments for the whole subregion. About Fonds Souverain de Djibouti Established in March 2020, the Sovereign Wealth Fund of Djibouti is helping to build a multigenerational savings pot, improve governance, diversify the economy and catalyse greenfield investments in the country's strategic sectors. These include sustainable natural resources and energy, telecommunications and digital infrastructure, technology, tourism, financial services, critical infrastructure and services, healthcare and education. For more information visit: Media contact IC Publications Isabelle Dana
Reuters
28-03-2025
- Business
- Reuters
Djibouti's sovereign wealth fund aims to double assets in a decade, CEO says
NAIROBI, March 28 (Reuters) - Djibouti's sovereign wealth fund plans to double its assets under management of more than $1 billion in the next decade, its chief executive said, investing in high-return projects to support the government's economic development plans. The Horn of Africa country established the Fonds Souverain de Djibouti (FSD) in 2020, looking to tap a model that has successfully been deployed by Gulf and Asian economies like Qatar and Singapore, to bankroll economic diversification and development, while offering a cushion during crises. "All else being the same, the base of dividends etcetera, I think we can double the size of the assets under management within the next decade certainly," Slim Feriani, the chief executive officer of FSD, told Reuters in an interview. The wealth fund fully owns the state telecommunications monopoly Djibouti Telecom, and a 40% stake in GHIH, which is the holding company for many of Djibouti's maritime and logistical assets including its port, Feriani said. It also gets about $25 million in cash every year, representing a 20% share from the annual revenue from leases of bases by the government to foreign militaries. Djibouti's location makes it a strategically important country, hosting military bases for the United States, China, Japan and European nations like Italy and France, Feriani said. Djibouti, at the southern entrance to the Red Sea, is one of the smallest countries in Africa with a population of just over 1 million people. Its economy is heavily dependent on global maritime transport and its state-of-the-art key deep water port, which also serves the neighbouring, landlocked Ethiopia, a fast-growing market of more than 100 million people. The World Bank forecasts economic growth to average 5.4% from 2024-2026, supported by export earnings from logistics and re-exports to Ethiopia. "We are a hub for ports and logistics, but we should be a hub for manufacturing industry for the rest of the region," said Feriani. FSD has an investment pipeline worth more than $50 million, encompassing data centres, renewable energy and logistics in the country, as well as a stake in a solar energy project in the Grand Bara area, said Feriani who previously held positions at investment bank Nomura in London and as a minister in Tunisia. However, the fund would eventually also invest in assets outside the country, said Feriani, without giving a time frame. "Our inspiration is Temasek," he said, referring to Singapore's sovereign wealth fund.
Zawya
28-03-2025
- Business
- Zawya
Djibouti's sovereign wealth fund aims to double assets in a decade, CEO says
Djibouti's sovereign wealth fund plans to double its assets under management of more than $1 billion in the next decade, its chief executive said, investing in high-return projects to support the government's economic development plans. The Horn of Africa country established the Fonds Souverain de Djibouti (FSD) in 2020, looking to tap a model that has successfully been deployed by Gulf and Asian economies like Qatar and Singapore, to bankroll economic diversification and development, while offering a cushion during crises. "All else being the same, the base of dividends etcetera, I think we can double the size of the assets under management within the next decade certainly," Slim Feriani, the chief executive officer of FSD, told Reuters in an interview. The wealth fund fully owns the state telecommunications monopoly Djibouti Telecom, and a 40% stake in GHIH, which is the holding company for many of Djibouti's maritime and logistical assets including its port, Feriani said. It also gets about $25 million in cash every year, representing a 20% share from the annual revenue from leases of bases by the government to foreign militaries. Djibouti's location makes it a strategically important country, hosting military bases for the United States, China, Japan and European nations like Italy and France, Feriani said. Djibouti, at the southern entrance to the Red Sea, is one of the smallest countries in Africa with a population of just over 1 million people. Its economy is heavily dependent on global maritime transport and its state-of-the-art key deep water port, which also serves the neighbouring, landlocked Ethiopia, a fast-growing market of more than 100 million people. The World Bank forecasts economic growth to average 5.4% from 2024-2026, supported by export earnings from logistics and re-exports to Ethiopia. "We are a hub for ports and logistics, but we should be a hub for manufacturing industry for the rest of the region," said Feriani. FSD has an investment pipeline worth more than $50 million, encompassing data centres, renewable energy and logistics in the country, as well as a stake in a solar energy project in the Grand Bara area, said Feriani who previously held positions at investment bank Nomura in London and as a minister in Tunisia. However, the fund would eventually also invest in assets outside the country, said Feriani, without giving a time frame. "Our inspiration is Temasek," he said, referring to Singapore's sovereign wealth fund. (Reporting by Duncan Miriri. Editing by Karin Strohecker and Mark Potter)
