African state-owned institutions are now managing a record $1 trillion in assets, according to a monthly report from sovereign fund tracker GlobalSWF.

Assets managed by public pension funds, central banks and sovereign wealth funds have grown as the continent is increasingly turning inward for investment due to cuts in concessional finance and aid.

"African (institutions) are at an all-time high, with circa $1 trillion in AuM," the report said. "Most are designed to catalyze FDI into Africa."

Most of that is managed by pension funds and central banks, but Africa is also witnessing rapid growth in the number of sovereign wealth funds investing state assets.

Five new sovereign wealth funds launched this year alone, according to GlobalSWF, including BSWF in Botswana, FIS-RDC in the Democratic Republic of Congo, ESWF in Eswatini, KSWF in Kenya, and OSWF in Nigeria's Oyo state.

The Libyan Investment Authority, with $68 billion in assets under management, is the largest among Africa's roughly 33 sovereign wealth funds.

Funds in sub-Saharan Africa, however, manage just 1% of the total $14.3 trillion in assets held globally by sovereign wealth funds, according to GlobalSWF data.

A U.N. report in June showed foreign direct investment in Africa jumping 75% in 2024 to $97 billion, but it fell again by 42% year-on-year, opens new tab in the first half of 2025 as trade tensions, high interest rates and geopolitical uncertainty kept investors cautious.