Senegal’s Fonsis is ready to build on its development fund origins
Fonsis is an interesting sovereign wealth fund, operating a fund-of-funds model to help the country’s SME development while generating an industry around the management of private capital.
Senegal’s sovereign wealth fund (SWF) is poised to build from its development fund mandate to allow greater international participation. The move is dependent on the passage of a law that should grant it a slice of the west African country’s expected oil and gas revenues.
In an interview with Euromoney, Papa Demba Diallo, CEO of Fonds Souverain d’Investissements Stratégiques (Fonsis), explains that under the proposed law, proceeds from the oil and gas industry in Senegal will go into three baskets. One is the national budget; another is the stabilization fund, which is what exists today; and the third is a new generation fund, which invests in a diversified range of assets for the future.
Diallo says the precise figures for each will depend on recovery from Covid and the budget required to do so, “but we can say between 10% and 20%, no more than 20%, would be a reasonable guess” for the contribution to the generation fund.