Independent Online

Wednesday, August 17, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

PIC to invest R1.6bn in AFC with eye on African infrastructure

PIC also aims to diversify its portfolio.

PIC also aims to diversify its portfolio.

Published Aug 3, 2022

Share

The Public Investment Corporation (PIC) plans an inaugural $100 million (R1.6 billion) investment in the Africa Finance Corporation (AFC), which is a catalyst for private sector-led infrastructure investment across Africa.

AFC has an A3 investment-grade rating from ratings agency Moody’s, its investment footprint spans 35 countries across Africa and it has a pipeline of projects that blend positive social and environmental impact.

Story continues below Advertisement

For example, AFC recently announced its joint acquisition of Lekela Power, Africa’s biggest renewables independent power producer, with plans to more than double operating capacity of the operating assets within four years.

Kabelo Rikhotso, the chief investment officer for PIC, said: “The PIC is delighted to partner with the AFC in the development, industrialisation and growth of the African continent ... Our clients’ investment mandates allow us to invest in the rest of the African continent. We believe that this partnership will assist us to deliver on that mandate and to diversify our growing portfolio.”

The PIC, which is Africa’s largest asset manager, with more than $150 billion in assets under management, said as a shareholder it would further benefit from co-investment opportunities and access to AFC’s formidable project development and risk-mitigated projects on the continent across the power, transport and logistics, natural resources, telecommunications and heavy industrial sectors.

Samaila Zubairu, AFC President and CEO said: “This equity investment is a significant vote of confidence in AFC and connects us to a very important source of capital in Africa.

”African pension funds have a key role to play in financing the instrumental infrastructure urgently needed on the continent and we look forward to a long-term partnership for a prosperous African future.”

BUSINESS REPORT

Story continues below Advertisement

Share