South Africa has highlighted Morocco as a prime example of an African sovereign wealth fund (SWF) capable of driving infrastructure development, industrialization, and social progress across the continent.
Speaking at the G20 Social Summit, South African Deputy Finance Minister Nosihle Masondo specifically cited Morocco’s Green Growth Infrastructure Facility as a benchmark initiative.
Masondo opened her remarks in Ekurhuleni by emphasizing the severe underinvestment in infrastructure across Sub-Saharan Africa. Countries in the region invest only 3.5 percent of their GDP in infrastructure on average, critically short of the 7.1 percent required to meet the Sustainable Development Goals (SDGs).
She noted that the continent faces an estimated annual financing gap of between $130 billion and $170 billion, with only $80 billion currently available. This massive shortfall renders traditional financing mechanisms “largely inadequate.”
To bridge this gap, Masondo advocated for a “new mix of capital” and a renewed approach to risk sharing, arguing that sovereign wealth funds must transition from being “mere reserve managers” to “catalytic investors.” She stressed the need to strengthen the SWFs’ role, especially as official development assistance is projected to decline.
When structured correctly, these funds can stabilize public finances, enhance resilience to commodity price volatility, and support intergenerational wealth transfer. Crucially, they can also attract foreign direct investment, encourage industrialization, and create opportunities in marginalized communities.
Aligned with the African Union’s Agenda 2063, modern African SWFs prioritize infrastructure, technological development, and the transition to a green economy. In addition to Morocco, Masondo highlighted Senegal’s FONSIS and emerging frameworks in Nigeria and Angola as focused on social impact and strategic sectors.
The Deputy Minister especially underscored the potential of SWFs in green industrialization. Their long-term mandates make them ideal for facilitating investments in renewable energy, sustainable agriculture, and climate-resilient infrastructure.
Such investments, she stated, “generate returns while strengthening energy security, climate action, and inclusive growth.”
As the current G20 chair, South Africa intends to place these issues at the heart of global financial governance reform. Masondo concluded, “The continent has no shortage of ideas or ambition, but rather of access to predictable, long-term capital. Sovereign wealth funds can be a crucial part of the solution.”
The G20 Social Summit, running from November 18 to 20, is bringing together governments, civil society, and representative organizations to discuss global social and development priorities.
MK/ak/fss/abj/APA