Fonds Souverain de Djibouti (FSD) expressed its interest to invest in Ethiopia in areas such as industry, real estate, agri-business, and tourism. The company aims to diversifying and modernizing the economy of Djibouti by focusing on the private sector. Djibouti’s Sovereign Wealth Fund is also diversifying risks through international investment. 

FSD’s CEO Slima Feriani pointed out that the mandate of the sovereign wealth fund of Djibouti is to invest up to 60% of the sovereign wealth fund of Djibouti outside of the country. The CEO remarked that about 20% of this amount would be invested in Ethiopia.

FSD was created in the form of a joint-stock company in March 2020. It models Temasek Holdings of Singapore and is expected to help improve governance in Djibouti and catalyze greenfield investments in selected economic sectors. As part of its mandate, it is also required to increase investment and develop partnerships in the Horn of Africa.

Source: Ethiopian News Agency 

Additional source: International Forum of Sovereign Wealth Funds