Djibouti’s government created a sovereign wealth fund, targeting contributions of $1.5 billion within a decade.
The state-owned fund will target investments locally and neighboring countries in the Horn of Africa, according to a government statement published Thursday. It will focus on industries including telecommunications, technology, energy and logistics.
“The fund is not designed as a ‘venture capitalist’ whose ambition is to generate margins and revenues in the short term,” the government said. “The fund will act as a long-term investor and is required to reinvest the entire net profits of its activity.”
Djibouti, situated on one of the world’s busiest shipping lanes, has become increasingly important to regional and world powers. Smaller than the U.S. state of Massachusetts, it hosts the largest U.S. military base in Africa in addition to a Chinese People’s Liberation Army support facility.