African Fund Managers Establish PAFMA to Drive Cross-Border Investment

By Aduragbemi Omiyale

The desire to increase cross-border collaboration and drive investment into the green economy has inspired fund managers across Africa to form a formidable group.

The trade organisation created by these professionals is known as the Pan-African Fund Managers’ Association (PAFMA). It was launched on Monday, September 4, 2023, at the Africa Climate Summit 2023 in Nairobi, Kenya.

The five founding members of PAFMA are the Pension Fund Operators Association of Nigeria (PENOP); the Fund Managers Association (FMA) in Kenya; the Botswana Investment Professionals Society (BIPS); the Ghana Securities Industry Association (GSIA) and the Investment Management Association of Uganda (IMAU).

These national associations, which between them account for assets under management (AUM) of over $70 billion, have established PAFMA in collaboration with FSD Africa, a specialist development agency working to build and strengthen financial markets across Sub-Saharan Africa.

“I have always believed that the solutions to Africa’s challenges lie within us. We need to come together, commit to collaborate, and speak with one voice.

“The managers of capital on the continent have a unique opportunity to individually and collectively determine to a large extent the trajectory of the continent.

“Working together, we can achieve so much more. The time is now,” the chief executive of PENOP Nigeria, Mr Oguche Agudah, said.

Also speaking, the Managing Director of Gen Africa Managers Limited, Mr Patrick Kariuki, said,

“The Fund Managers Association is very excited to partner with other like-minded Pan-African Fund Manager Associations.

“Our industry and its future growth depend on vibrant collaboration amongst fund managers across Africa. With PAFMA, fund managers will be able to evaluate and make investments in regions and countries where we did not have sufficient local context. The Fund Managers Association is honoured to be invited to this exciting and very important initiative.”

On his part, the chief executive of FSD Africa, Mr Mark Napier, said, “We are excited about the establishment of the Pan-African Fund Managers’ Association which comes at a timely juncture.

“This association will be integral for African Fund Management organisations to ensure that they share industry knowledge, manage risks with a continental and international view and drive needed investment in critical sectors such as climate mitigation and adaptation.

“This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s financial and investments sector landscape.”

Business Post gathered that PAFMA’s primary objective is to foster the adoption of alternative investments, including a particular focus on green finance, a pivotal driver for bolstering various sectors of the economy.

By championing these alternative investment avenues, PAFMA seeks to not only stimulate job creation but also enhance income generation.

Among its activities, PAFMA aims to spearhead localised research efforts and initiatives to enhance knowledge sharing and capacity building enabling fund managers to evaluate and make investments in regions and countries where they did not previously have a presence.

Serving as a proactive advocate, PAFMA will also offer policy insights and champion the interests of its members in both regional and international arenas as well as facilitating regular gatherings of fund managers from across Africa.