Former Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, has emphasised the critical role of sovereign wealth funds (SWFs) in unlocking Africa’s mining potential and driving sustainable economic transformation.

He explained that such funds serve as vital instruments for long-term, sustainable financing, particularly in economies where access to large-scale investments remains limited.

In an interview with B&FT, Koranteng revealed that MIIF has recorded remarkable growth since its inception.

Gold price surge may slow amid central bank moves – Former MIIF boss

According to him, the Fund’s Assets Under Management (AUM) increased from $125 million in 2021 to $1.0 billion in 2024, with projections indicating that it could reach $1.8 billion following ongoing evaluations of equity interests in various mining companies.

“I believe sovereign wealth funds are essential for African mining countries. SWFs are long-term plays with investment horizons between five and eleven years. It’s a simple equation, turning finite mineral resource wealth into long-term economic buffers and development channels. That means using funds from today’s mineral reserves to invest in future opportunities, thereby creating generational wealth and financial resilience,” he stated.

Koranteng urged African countries to adopt similar models, noting that the current gold boom and rising global demand present a unique opportunity to deepen capital markets, expand industrial capacity, and strengthen economic resilience.

“It is, however, important that such SWFs are well-designed, with a clear purpose guided by an investment policy framework. They must have strong governance systems, transparent reporting structures, alignment with national development agendas, and be insulated from political interference,” he added.

SP/MA

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