|
Getting your Trinity Audio player ready...
|
By Mary mwendwa
Djibouti: Despite global turbulence—much of it self-inflicted—the second Djibouti Forum struck a cautiously optimistic tone, with business leaders viewing current challenges as a potential catalyst for Africa’s next growth phase.
The forum brought together 150+ international delegates from 51 countries, including institutional investors managing over $2.6 trillion in assets. A recurring theme was the urgent need for strategic partnerships and domestic resource mobilization, particularly in leveraging African pension and sovereign wealth funds for higher-risk, high-reward investments.
Prime Minister Abdoulkader Kamil Mohamed outlined Djibouti’s plans to diversify its economy beyond its renowned ports and logistics sector, which he called “one of the most efficient and sophisticated in Africa.”
“Renewable energy, the digital economy, tourism, and financial services are central to our next chapter,” he said. “We seek capital, expertise, and partners aligned with our long-term vision.”
He emphasized Djibouti’s political and economic stability, noting its dollar-pegged currency (since 1949) as a unique advantage for investors in Africa.
Sovereign Wealth Fund as a Co-Investor
Dr. Slim Feriani, CEO of the Fonds Souverain de Djibouti (FSD), announced the fund’s readiness to co-invest alongside global investors in strategic projects.
“The FSD will take equity stakes—putting skin in the game. We aim to double our AUM in five years, but we can’t do it alone,” he said, highlighting Djibouti’s track record of positive investor returns.
Feriani stressed the need for continued reforms to attract private capital, calling the private sector “a force for good that thrives with smart regulation.”
Key Discussions: Privatization, PPPs, and Africa’s Growth Potential
Over 50 high-level speakers debated critical topics, including:
- Privatization and public-private partnerships (PPPs)
- Priority sectors like tech, connectivity, energy, and financial services
- Macroeconomic trends shaping Djibouti and Africa
Dr. Acha Leke, Chairman of McKinsey & Company Africa, remained bullish on Africa’s prospects despite debt and growth disparities. “Africa hosts 345+ businesses valued at over 1B∗∗, with∗∗1 trillion in cumulative revenues,” he noted.
Lionel Zinsou, former Prime Minister of Benin and SouthBridge co-founder, pointed to philanthropic capital as a game-changer. “Philanthropy is now a key partner in blended finance, offering grants and de-risking tools that lower project costs and interest rates,” he said.
Dr. Samuel Maimbo, former World Bank Vice President, praised the FSD for fostering collaboration among African institutional investors.
“An African sovereign wealth fund partnering with peers is the start of a new narrative—one that moves beyond aid and debt toward hope and prosperity,” he asserted.
Hosted by the Fonds Souverain de Djibouti (FSD), launched in 2020, the forum is spearheaded by Dr. Slim Feriani, a former Tunisian Minister with 30+ years in global capital markets.
