The Public Investment Corporation (PIC) has ploughed R1.6 billion into the Africa Finance Corporation (AFC), which funds infrastructure development projects on the continent.
The PIC has over R2.5 trillion in assets under management – investing the pensions of civil servants – and is the largest fund manager in Africa.
“The PIC has given formal notification to make a $100 million (~R1.6 billion) equity investment in the AFC,” the AFC said in a statement.
The investment follows those from the Seychelles Pension Fund, the government of Sierra Leone, the Republic of Togo, the Central Bank of Guinea and the Ghana Infrastructure Investment Fund, the AFC said. There are 32 equity investors in the AFC. It recently acquired Africa’s biggest renewable energy independent power producer, Lekela Power. It is the joint owner with Infinity Group. Lekela Power has 1GW of wind farms – located in South Africa, Egypt and Senegal.
The AFC was established in 2007 and has delivered infrastructure projects in power, heavy industry, transport, natural resources and telecommunications. It has invested over $10 billion (~R165 billion) across 35 countries in Africa.
Commenting on the investment, the PIC’s chief investment officer Kabelo Rikhotso said that the partnership would allow the fund manager to diversify its portfolio and deliver on the mandate to invest in the rest of the continent, driving development, industrialisation and growth. “We are confident that the future prospect of this investment and its potential positive societal benefits,” said Rikhotso.
“African pension funds have a key role to play in financing the instrumental infrastructure urgently needed on the continent…” noted Samaila Zubairu, CEO of the AFC.-moneyweb
