The General public Investment Company (PIC) has specified formal notification to make a $100 million (R1.65 billion*) fairness financial commitment in multilateral financial establishment the Africa Finance Corporation (AFC).
The expense will be the PIC’s 1st these kinds of contribution to the Nigeria-headquartered AFC and will be used for the continent’s infrastructure and industrial enhancement efforts.
According to the AFC, the PIC’s financial commitment will manage it “co-financial investment options and accessibility to AFC’s formidable undertaking growth and chance-mitigated jobs on the continent across the electricity, transport and logistics, pure methods, telecommunications and large industrial sectors.”
“The PIC is delighted to lover with the AFC in the enhancement, industrialisation and growth of the African continent. We are assured of the long run prospect of this financial commitment and its possible favourable societal rewards.” PIC CIO Kabelo Rikhotso claims in a assertion issued on Tuesday.
“Our clients’ investment mandates enable us to make investments in the relaxation of the African continent. We believe that that this partnership will guide us to supply on that mandate and to diversify our expanding portfolio,” Rikhotso provides.
AFC President and CEO Samaila Zubairu suggests the PIC’s equity investment is a “significant vote of self esteem in AFC and connects us to a very important resource of capital in Africa.”
“African pension money have a key role to play in funding the instrumental infrastructure urgently needed on the continent and we seem forward to a long-time period partnership for a prosperous African foreseeable future,” Zubairu adds.
By means of the investment decision, the PIC joins the AFC’s cohort of 32 equity buyers, including the Seychelles Pension Fund, the Government of Sierra Leone, the Republic of Togo, the Central Lender of Guinea and the Ghana Infrastructure Expenditure Fund.
As Africa’s greatest asset supervisor, the PIC has over R2.34 trillion of assets underneath management, with its greatest consumer the Govt Staff Pension Fund (GEPF) accounting for 89% of its belongings.
Investing in SA
AFC was established in 2007 with the intention of turning out to be the critical driver of non-public sector-led infrastructure investment throughout Africa and has an investment presence in 35 African countries, including South Africa.
The AFC just lately uncovered its joint acquisition of Netherlands-dependent Lekela Electrical power – Africa’s biggest pure-engage in renewable electricity unbiased power producer – with Egyptian company Infinity Group, in a deal believed to be value above $1 billion.
Examine: Africa’s biggest renewable electricity IPP to be offered to Egyptian firm
Lekela Electrical power contributes close to 564 000MWh of clean vitality to South Africa’s strained countrywide grid each individual year by its Khobab Wind Farm, primarily based in the Northern Cape’s Loeriesfontein. The wind farm is claimed to aid about 170 000 homes in the state.
Strength disaster may possibly spur SA to permit far more personal electrical power
Eskom identifies further land for renewable vitality tasks
*US$1 = R16.57