The Republic of Djibouti has created a sovereign wealth fund as part of the country's efforts to become an international commercial, logistics and digital hub.
The Fonds Souverain de Djibouti, known as FSD, is a key measure of the government's Vision 2035 policy, according to a news release Thursday.
The fund will be used to increase Djibouti's "capacity to invest in an optimized and efficient way," and will be used to modernize and maximize the country's economic potential and attractiveness, the release said.
The FSD will also enhance Djibouti's "capacity to act," increasing its bargaining power with domestic and international partners.
Investments will target Djibouti itself and countries with economic connections to the republic, focusing on the Horn of Africa region, the easternmost part of northeast Africa. Sector targets include telecommunication, energy and agriculture. The fund is targeting contributions of $1.5 billion over 10 years.
"The fund is not designed as a 'venture capitalist' whose ambition is to generate margins and revenues in the short term. The fund will act as a long-term investor and is required to reinvest the entire net profits of its activity," the release said.
