ABSTRACT
Widespread liberalization, privatization, and financialization of the global economy over the past few decades have provided new opportunities and challenges for African countries. In a process that might appropriately be called “entrepreneurial governance,” many national and municipal governments in Africa have created or re-configured sovereign wealth funds, public pension funds, and state enterprises to realize financial returns at home or abroad. From Nigeria to Mozambique, governments are relying on public investment vehicles to participate alongside private capital in consumer goods investments, infrastructural, and property development in their countries. Some governments, wealthy individuals, and investors are also hiding assets and avoiding taxation in an offshore world of tax havens, banking, and financial services. This chapter discusses the main characteristics of African economies following liberalization and financialization. It then explores different types of public funding mechanisms, the objectives of this funding, and the beneficiaries of projects and investments. The chapter concludes by discussing the benefits and risks brought by the ways in which African states and their representatives are engaging with markets at home and abroad.
