Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has issued a clarion call for Africa’s sovereign wealth funds to take centre stage in transforming the continent’s economies, urging them to move beyond their traditional roles and become key drivers of development.
Speaking at the African Sovereign Investment Forum (ASIF) hosted by the Nigerian Sovereign Investment Authority (NSIA) in Abuja, Edun declared:
“Africa stands at a pivotal moment, facing profound challenges and unmatched opportunities. In this decisive period, sovereign wealth funds must move beyond the traditional roles of stabilising and wealth preservation to becoming active instruments for economic transformation.”
According to Edun, the critical question before the continent is how to leverage Africa’s sovereign capital to crowd in international finance, forge impactful partnerships, and build a sustainable future for its people.
“At the heart of the answer lies collaboration, just the type that we have here,” he said. “African sovereign wealth funds are uniquely positioned to de-risk large-scale projects, signal national commitment and align local development needs with global objectives. And to fully realise this role, we must position our funds not just as investors, but as co-developers.”
Edun emphasised the need for capital mobilisation at scale, regional and continental collaboration, and human capital and policy alignment as the three key pillars for Africa’s future prosperity.
“You can’t do anything without capital — capital is the key,” he said. “We must reach scale in mobilising blended capital platforms that can absorb institutional funding from across the world.”
He stressed the need to create the right environment for private sector participation: “One of the particular aspects we must succeed in is convincing even ourselves, our authorities, that the private sector is where the real money is. And if you are going to attract private sector investors, then you have to meet their terms. You have to have the philosophical mindset that makes conditions amenable for the private sector.”
Praising Nigeria’s own sovereign wealth institution, Edun said: “I’m very proud of our own Nigerian Sovereign Investment Authority. It has played a crucial role in capital mobilisation, positioning itself as a leading capital provider and a trusted gateway for global investors seeking high-impact opportunities in Nigeria and across Africa.”
Praising Nigeria’s innovative approach to development finance, Edun highlighted several groundbreaking projects spearheaded or supported by the Nigerian Sovereign Investment Authority (NSIA). These include the Green Guarantee Company, the world’s first climate-focused guarantee institution, co-founded with the Green Climate Fund, FCDO, and USAID, which has already unlocked about $1 billion in guarantees for climate-related projects. He also pointed to the Chapel Hill Denham Nigerian Infrastructure Debt Fund, Nigeria’s first and largest infrastructure debt fund, which mobilises long-term capital from institutional investors to drive critical infrastructure development.
In addition, Edun cited collaborative initiatives such as the World Bank’s 300 Initiative, developed alongside Africa50, the International Solar Alliance, and the United Nations Sustainable Energy for All, which aim to direct substantial capital into underserved communities through distributed renewable energy platforms.