Sovereign Wealth Funds and Natural Resource Management in Africa

Abstract

Non-renewable resources dominate nearly one quarter of the world’s economies. Over half of these economies are developing, with many in Africa. Managing resource revenues is one of the most pressing challenges facing policymakers in Africa. For over a decade, these countries have been advised to follow ‘the Norwegian model’, saving resource revenues abroad, in offshore sovereign wealth funds for future generations. The 3 papers in this issue challenge that view. Together, they argue that there are 3 key motives for saving revenues abroad: intergenerational transfer, parking and stabilisation. This is an output from the ‘Delivering Inclusive Financial Development and Growth’ project