Djibouti launches sovereign fund; advised by SouthBridge
Posted on: 15 September, 2020 at 6:49 PM
The activities of the Djibouti Sovereign Fund (Fonds Souverain de Djibouti – FSD) were officially launched on Monday, September 14 at the presidential palace in the capital. Following the implementation decrees promulgated on June 24, 2020, a special inter-ministerial committee was held under the authority of President Ismaël Omar Guelleh, in the presence of the Prime Minister, members of the government and the fund’s administrators.
The sovereign fund presents itself as an ambitious and innovative financial instrument aimed at turbocharging the country’s development. It will strive to modernise the country’s economy, to boost the growth of a competitive private sector and to enhance the development of the public productive sector, one of the essential instruments of this transformation.
Among the personalities present were the co-chairmen of SouthBridge, Donald Kaberuka (in videoconference) and Lionel Zinsou, as well as William Ediko, partner, who advised the Republic of Djibouti in setting up the fund. Also present was Amir Jahanguiri, partner at law firm Willkie Farr & Gallagher, who advised the government for this project.
The holding of the inter-ministerial committee was also an opportunity to formalise the appointment of the managing director of the FSD, Mamadou Mbaye.
The creation of the FSD is a flagship measure of the ”Vision 2035”, a long-term development strategy of the Republic of Djibouti which aims to position the country as a leading commercial, logistics, port and digital hub.
Established in the form of a private limited company whose sole shareholder is and will remain the State of Djibouti, the fund aims to ”collect” national wealth to leverage Djibouti’s ability to invest quickly. The FSD will allow better control of projects while focusing on the national and strategic interests of the country. The FSD will play the role of a strong and committed partner sought by external and domestic investors.
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