# **1.2 Data: SWF investments in Africa**

In this section, we present SWF investments in Africa. We first look at the sources of funding for SWFs that invest in the continent. Second, we take into account the geographical origin of the SWFs, and finally, we classify SWF investments in Africa by sector. We collected data from different sources. We use data taken from Bortolotti _et al._ (2009, 2015), who investigate the relationship between SWFs and their investment patterns and performance levels. Their database includes the total number and value of investments, the number and value of domestic investments, the number and value of listed equity investments, the number and value of unlisted equity investments, and the number and value of real estate investments of SWFs over the period January 1986 to September 2008, for 35 funds. We also used data taken from Chhaochharia and Laeven (2009), who analyze the investments of SWFs by taking into account common cultural traits. They collected information on a total of 29,295 equity holdings by SWFs over the period 1998-2007, comprising 10,282 equity holdings across 51 countries at year-end 2007. We use a database taken from the Sovereign Wealth Center and the SWI, and another database taken from Triki and Faye (2011). Finally, in order to have more information about SWF investments in Africa, we went to different SWF websites, and recorded their acquisitions in Africa. We then used different online sources to find the amounts invested in these companies by SWFs, particularly in financial and economic newspapers. Indeed, this strategy allowed us to track the country destinations of five SWF investments over the period 2000-2013, and then calculate the share of investments in terms of GDP received by African countries.<sup>2</sup> To investigate SWF investments and economic growth, we use per-worker GDP data for 30 African countries over the period 2000-2013 taken from the WDI.<sup>3</sup> We also use private credit as a measure of the level of financial development, as well as stock market capitalization as an alternative measure to analyze the relationship between SWF investments and growth through financial development. The datasets of these variables are also taken from WDI.

**SWFs that invest in Africa mainly obtain their funding from extractive industries.** 47 percent of SWFs that invest in Africa obtain their finding from extractive industries, therefore 53 percent are from other sources (non-commodity).

**SWFs that invest in Africa mainly originate from Asia.** The investments of SWFs in Africa are dominated by Asian funds, with 49 percent of the total, followed by African funds with 38 percent (this includes Lybia and Algeria). However, the domination by Asian SWFs is due to China, which represents 48 percent. The share of investments of SWFs from the Middle East and the Americas in Africa is 6 percent, while only 1 percent of SWF investments are from Europe.

> 2Istithmar Investment Fund invested in Kenya, Djibouti, Rwanda, South Africa, and Tanzania. The Mubadala Fund invested in Guinea, and Nigeria. The Brazilian SWF invested in Mozambique, Democratic Republic of Congo and Angola. The Chinese SWF invested in Nigeria, Sudan, Guinea, South Africa, and Ethiopia. The Singaporean SWF (Temasek) invested in Nigeria, Tanzania, and South Africa.

> 3 The World Development Indicators are publicly available at `http://www.worldbank.org/` .

5