Fund Domiciliation Trends And Key Market Developments In Africa

• Published date: 27 January 2023
• Subject Matter: Finance and Banking, Financial Services, Fund Management/ REITs
• Law Firm: Jersey Finance Limited
• Author: Mr Elliot Refson

In our rapidly evolving global market, the choice of fund domiciliation has become an increasingly salient issue for both investors and fund managers looking for efficiency, stability and transparency. The shifting geopolitics introduced by the Russia-Ukraine war, Brexit, Trumpism and the pandemic have reconfigured Africa's place in the world and driven its rapid ascendency. These geopolitical issues have highlighted the fact that political risk is not idiosyncratic to Africa and the so called "emerging markets", but rather that they are features of markets everywhere.

As African economies emerge from this crisis, it is clear that local and traditional sources of finance and investment will not be enough to fuel and grow economies. Governments will have to deploy and use different methods and sources of investment to return to the growth trajectory that will enable the continent to achieve the African Union Agenda 2063; The Africa We Want. Financial and other incentives will need to be ramped up to make African economies more competitive to attract the international capital that will inevitably be looking for a home to invest in.

With mutual ambition shared by African managers and international investors, it will be international finance centres (IFCs) like Jersey - that can demonstrate a quality service, sophisticated expertise, commitment to the highest standards of governance and regulation, and a global reach - that will have the potential to play an increasingly vital role in sourcing overseas capital securely and efficiently to ensure Africa can achieve its future aspirations.

Jersey's relationship with Africa is broad, deep and based on shared interests and one area with strong growth is sustainable finance, specifically impact investing. The Global Impact Investing Network's (GIIN) Annual Impact Investor Survey 2020 sized the market at a staggering US$715bn, and this deep pool of funds presents a golden opportunity for...