Wednesday, January 16, 2013

Africa's sovereign wealth funds

They've been a feature of Chinese and Arab economic development for years, but African countries have been slow to develop their own sovereign wealth funds.

But in the last three months Angola ($5bn) and Nigeria ($1bn) have joined Botswana in launching their own. And the president of Tanzania and Mozambique says they're preparing to go down the same path.

Supporters say it's a way of ring-fencing the income generated by resource-rich countries whose wealth has been looted by dictators and kleptocrats.

Opponents' claim that Africa's history of unaccountable leadership and vulnerability to western influences means this could make matters worse.

But one thing is clear. Africa's wealth needs protecting and it needs to be invested wisely. And if sovereign wealth funds aren't the answer, what is?

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Source: http://www.youtube.com/watch?v=4k4y0F9Y3QE&feature=youtube_gdata

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