the European, Middle East and North African Sovereign Wealth Foundation (EMENA SWF)a newly created collaborative network, seeks to serve as a regional platform for members to meet and exchange experiences and available information on investment opportunities.
Malta Government Investments (MGI), the Sovereign Wealth Fund of Egypt and Bpifrance are among its founding members, having signed an agreement in March 2022. Compañía Española de Financiación del Desarrollo has also signed a memorandum of understanding with the three parties with l intention to become a member.
“The EMENA SWF Foundation network aims to enable member and associate sovereign wealth funds to co-invest in the EMENA region and explore investments in sub-Saharan Africa in the future,” said Herald Bonnici, CEO of MGI.
He added that sovereign wealth funds increasingly want greater exposure to emerging markets, while seeking to strengthen their direct investments in companies, real estate and infrastructure.
Helping sovereign wealth funds reach new markets
The launch of this network seems to present an opportunity to increase investment activity and stimulate the economic development of several countries.
The foundation seeks to attract capital backed by sovereign wealth funds that will help unlock large private investment flows to de-risk and finance projects or companies active in the EMENA region, whose investment financing gap is estimated between 700 and 900 billion dollars. .
Green technologies, sustainable development, small and medium enterprises and innovation are among the targeted sectors.
Through the exchange of experience and information on investment opportunities, the EMENA SWF Foundation also hopes to contribute to the achievement of national economic goals in Europe, the Middle East and North Africa.
“Creating long-term value by integrating environmental, social and governance aspects into investment opportunities is essential,” says Bonnici. “Egypt in particular is accelerating its conversion and support to a green economy, recently ratifying incentives for the private sector to invest in green projects as part of its preparations to host COP27 later this year.”
Based in Malta, this foundation has a Mediterranean base which can be broadened by establishing partnerships or by joining more sovereign wealth funds to the network.