Santiago Principles Self-Assessment

Fonds Souverain d'Investissements Stratégiques S.A.

Fund Details Fund Website Search Assessments PDF version
  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

There is no specific legal framework for sovereign wealth funds in Senegal.

FONSIS was created under the Founding Legislation n° 2012-34 voted in Parliament on 27 December 2012. The Law is publicly disclosed in the Government Official Journal and available online at this link

This Law was used as the basis to incorporate FONSIS and to draft the Articles of Associations of the Fund as a legal entity under private law.

As such, FONSIS is a limited liability corporation (“Société Anonyme” or “S.A.”) fully compliant with private business law of OHADA, the Organisation for the Harmonization of Business Laws in Africa, as is the case for any other private company in Senegal, the latter being a member-state of OHADA

FONSIS is therefore incorporated under private OHADA business law, and the State of Senegal is the sole shareholder at the moment. The 2012-34 Law and the Articles of Association do however provide for other state-owned entities or governmental agencies to become shareholders if needed. The Articles of Associations are readily available to the general public, at the Registry of the Commercial Court of Dakar, as is the case for any other company created under local, private law.

As a limited liability corporation and under private OHADA business law (more specifically the Uniform Act on Commercial Companies and the Economic Interest Group (“Uniform Act”), FONSIS has a Board of Directors (“BoD”), a Chairman and Chief Executive Officer (“CEO”). The BoD, the Chairman and CEO are nominated by the Head of the Government of Senegal (the President), either by presidential decree or during the council of ministers. Once nominated, they are part of the governing bodies of the Fund. The BoD, the Chairman and the CEO execute their missions and duties in accordance with The 2012-34 Founding Legislation of FONSIS and to the Uniform Act, which is available to the public in this link

Once nominated and confirmed by the BoD in accordance with the Uniform Act, the CEO recruits a team of investment and finance professionals who all participate in the management of the Fund on behalf of FONSIS. The management and the operational teams are direct employees of the Fund.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

The Fund’s governance structure establishes distinct roles and responsibilities in its management. These roles and responsibilities are summarised in the attached presentation titled “FONSIS organisational chart and governance structure”.
The Fund’s owner being the State of Senegal, the operational team as described in the organisational chart manages the Fund according to FONSIS strategies and missions as described in the Law 2012-34. The decision-making and operational functions are allocated to the operational team as described in its articles 9 through 19.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

FONSIS Investment policy is defined in Article 6 of the Founding Legislation 2012-34 and is consistent with the Fund’s objectives and risk tolerance.

By clearly defining the risk tolerance, this investment policy guides the use of leverage in order to strengthen the Fund’s financial resources.

Apart from the Founding Legislation cited above, the investment policy is publicly disclosed on the FONSIS website as well: and is reviewed on an annual basis.

External co-managers will be used only to manage non-FONSIS funds or assets, for instance when it comes to managing funds allocated to FONSIS by development finance institutions (DFIs) of other countries. As such, the process by which external managers are selected, how their performance is monitored and the scope of their interventions are defined as part of the Fund Management processes of FONSIS and publicly disclosed through open calls for expression of interests or procurement notices.