MEFMI REGION CENTRAL BANK GOVERNORS’ FORUM IN BASEL

Africa has long been criticised as not having utilised its natural resources wealth well enough to ensure sustainable and positive change in its economies. Sovereign wealth funds are seen as one avenue of achieving this and the past decade has seen a historic rise in the number of these funds, as well as the size of assets under collective management.

However, given that so many resource-rich countries are still in need of economic development, it begs the question – how can sovereign wealth funds be better leveraged to establish economic stabilisation? This is the topic that central bank governors from rapidly developing economies will discuss at a Forum, in Basel Switzerland tomorrow.  Please click here for the programme

The Governors will be mainly from the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) region. The MEFMI region is made up of 14 member countries – Angola, Botswana, Burundi, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

The discussions at the MEFMI Region Governors’ Forum will be driven by research conducted by Investec’s Investment Institute and the Center for International Development, as well as the Belfer Center at Harvard University. The research focusses on the structures, policies and operations of sovereign wealth funds. There will also be a presentation from the World Bank Treasury on the role of central banks in sovereign wealth management.

The message from the resultant research reports is that all is not lost in terms of the momentum behind Africa’s emerging sovereign wealth funds, even following the lull in commodity prices. If African governments continue to sow the seeds of fiscal reform today, the benefits will be reaped when it matters – by the time the next resource boom arrives.

Importantly, by getting sovereign wealth funds to work more efficiently for an economy, it will ensure that these countries are better prepared for the inevitable slumps that will follow.

“We are delighted to be hosting our member countries as well as some visiting countries’ central bank governors to discuss this most important issue which will help to establish long-term prosperity on our continent,” says Caleb Fundanga, Executive Director of MEFMI.

“Africa’s resource wealth is a great asset to the continent, but it is crucial that it is best used to ensure long-term and sustainable economic wealth for these countries, even in times of commodity price weakness,” says Katherine Tweedie, Executive Director of the Investec Investment Institute.

The MEFMI Region Central Bank Governors’ Forum will also be attended by Central Bank Governors from the Bank of Finland and Bank of Ghana. Investec Asset Management is MEFMI’s cooperating partner for this event.

For more information on this event please contact the following;

Ms Gladys Siwela, MEFMI Publications and Networking Officer

Email: gladys.siwela@mefmi.org

Lauren Thys, Investec Asset Management Marketing Associate

Email: lauren.thys@investecmail.com

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