African state-owned financial institutions have reached a historic milestone, now managing an estimated $1 trillion in assets, according to the latest monthly assessment by GlobalSWF. The surge reflects a broader shift toward domestic capital mobilization as cuts in concessional lending and international aid prompt Governments to rely more heavily on public pension funds, Central Banks and sovereign Wealth vehicles.
While the bulk of assets is held by pension funds and monetary authorities, the continent is experiencing a notable rise in sovereign wealth fund activity, with five new funds established in 2025 alone — in Botswana, the Democratic Republic of Congo, Eswatini, Kenya and Nigeria’s Oyo State. The Libyan Investment Authority remains Africa’s largest, overseeing roughly $68 billion.
Despite this growth, African sovereign wealth funds collectively account for only 1% of the $14.3 trillion managed globally in this category. The investment environment remains challenging: although Africa recorded a 75% surge in foreign direct investment in 2024, reaching $97 billion, inflows fell sharply by 42% in the first half of 2025 amid global trade frictions, elevated interest rates and geopolitical turbulence.
The continent’s increasing reliance on its own institutional investors underscores both the constraints in global financing and Africa’s ambition to channel domestic capital toward long-term development and foreign investment attraction.