Africa is nearing a record $1 trillion in state-owned assets under management (AuM), driven by a new trend toward greater economic autonomy, according to a report from GlobalSWF. This unprecedented growth in domestically managed funds—handled by state-run public pension funds, national central banks, and sovereign wealth funds (SWFs)—is primarily a response to cuts in concessional finance and foreign aid, forcing African nations to seek domestic solutions for internal problems.

The report notes that African institutions’ assets under management are at an “all-time high, with circa $1 trillion in AuM.” While the majority of this wealth is managed by pension funds and central banks, the continent is experiencing a rapid proliferation of sovereign wealth funds designed to catalyze Foreign Direct Investment (FDI) into the continent. The year 2025 alone saw the launch of five new SWFs, including BSWF in Botswana, FIS-RDC in the Democratic Republic of Congo, KSWF in Kenya, and OSWF in Nigeria’s Oyo state, adding to the roughly 33 national wealth funds, the largest of which is the Libyan Investment Authority with $68 billion.

Despite the significant growth to near the $1 trillion mark, the report highlights Africa’s continuing disparity in global asset management. Sub-Saharan Africa currently holds only 1% of the $14.3 trillion controlled globally by sovereign wealth funds, and the same 1% share of the total global public pension funds ($25.9 trillion) and central bank assets ($17.0 trillion). This contrasts sharply with continents like Asia and Europe, which control the lion’s share of global state capital, underscoring the long journey ahead for African financial institutions to achieve global parity.

Nevertheless, the increase in locally managed assets signals a fundamental shift toward self-reliance. By taking direct control over these substantial financial assets, African nations are strategically positioning themselves to finance their own large-scale infrastructure and industrial projects. The growth trajectory suggests that the continent’s public funds are increasingly being used to promote internal development, stabilization, and diversification, rather than solely relying on external financing, thereby strengthening regional economic resilience.

SOURCE : BUSINESS INSIDER AFRICA