Angola’s Wealth Fund and Gemcorp Launch $500 Million Africa Infrastructure Fund
Natalie Nyathi
Angola’s sovereign wealth fund (FSDEA) is partnering with Gemcorp Capital to establish a $500 million infrastructure fund focused on Africa. According to a joint statement, the fund aims to attract private-sector investment into critical sectors across the continent, including critical minerals, water, food security, and energy transition.
FSDEA told Reuters that it plans to contribute “$50 million initially, which could increase to $200 million,” while Gemcorp will add “up to $50 million”. The remaining capital will be sought from global investors who want to diversify from “crowded” financial markets in the U.S. and Europe.
Gemcorp, which specializes in emerging markets, indicated it would use its platform and staff in Africa to oversee project management.
Established in 2011, FSDEA currently manages roughly “$4 billion in assets”. According to reports, the fund has faced challenges, including poor investments and governance issues. However, the current leadership is committed to improving transparency and expanding investments beyond traditional securities.
Armando Manuel, chair of Angolan sovereign wealth fund Fundo Soberano de Angola (FSDEA) stated, “We have this responsibility to look to the continent,” highlighting the fund’s renewed focus on Africa.
The establishment of the Pan-African Infrastructure Fund, as reported by Reuters, signifies a critical step toward addressing Africa’s infrastructure needs. By seeking private-sector investments and focusing on vital sectors, this initiative has the potential to drive significant economic growth across the continent.