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Tanzania Looks to Creating a Sovereign Wealth Fund

Jakaya Kikwete

Jakaya Kikwete

The east African country of Tanzania is on pace to become the next sub-Saharan nation that plans to set up a sovereign wealth fund based on natural resources. Currently, Sub-Saharan sovereign funds make up a small portion of the total outstanding sovereign fund investor class by assets under management.

The proposed Tanzanian sovereign fund will be funded by future earnings derived from large gas deposits in the southern region of the country, along the Indian Ocean coast. In June 2012, gas reserve estimates tripled by offshore exploration discoveries by ExxonMobil, Statoil, BG Group, and Ophir Energy.

Tanzania is transforming into an energy hub in the region due to natural gas discoveries.

In September, the government of Tanzania signed a US$ 1.2 billion loan agreement with China for the construction of a pipeline. The Tanzanian government expects the completion of the 532 kilometer gas pipeline project that will connect the south to Dar es Salaam.

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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Digital Insurance Distributor BGL Opts for CPPIB Money Over IPO

Canada Pension Plan Investment Board (CPPIB) is investing £675 million (US$ 895.715 million) for a 30% stake in Peterborough-based BGL Group, a digital distributor of insurance and household financial services to 8.5 million customers. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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