The Pan-African Fund Managers’ Association (PAFMA) has been officially launched today in Nairobi, ushering in a new era of collaboration among fund managers across the continent.
The founding members of PAFMA are five prominent national associations: 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). Collectively, these associations oversee assets under management (AUM) totaling over US$70 billion. Their collaboration with FSD Africa, a specialized development agency dedicated to strengthening financial markets in Sub-Saharan Africa, has resulted in the establishment of PAFMA.
The official launch of PAFMA took place during the Africa Climate Summit 2023 in Nairobi, where the founding members signed a Memorandum of Understanding (MoU). This initiative comes at a crucial time for the industry, given the numerous challenges it currently faces. These challenges include historically low savings rates, which as of 2021 stood at only 24% of GDP in Sub-Saharan Africa, a scarcity of viable investment opportunities, and escalating environmental risks across the continent.
Recognizing that government securities dominate the current pool of investible assets managed by fund managers in Africa, PAFMA’s primary objective is to promote the adoption of alternative investments. One of its key areas of focus is green finance, which has the potential to drive growth in various sectors of the economy.
PAFMA will undertake a range of activities to achieve its goals, including spearheading localized research efforts and initiatives aimed at enhancing knowledge sharing and capacity building. These efforts will empower fund managers to evaluate and make investments in regions and countries where they may not have had a presence previously. Additionally, PAFMA will serve as a proactive advocate, offering policy insights and championing the interests of its members in both regional and international arenas. It will also facilitate regular gatherings of fund managers from across Africa.
Commenting on the launch of PAFMA, Oguche Agudah, CEO of PENOP Nigeria, emphasized the importance of unity among African fund managers, stating, “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.”
Patrick Kariuki, Chairman of FMA and Managing Director of Gen Africa Managers Ltd, expressed his excitement about the initiative, stating, “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.”
Mark Napier, CEO of FSD Africa, praised the establishment of PAFMA, saying, “This association will be integral for African Fund Management organizations 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.”