In a milestone for African pension capital being deployed for national infrastructure and industrial development, the Public Investment Corporation (PIC), Africa’s largest asset manager, with over $150 billion in Assets Under Management, includes an inaugural investment in Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider.
PIC has officially notified its intention to invest $100 million in AFC. The investment approved by the South African pension fund manager follows recent equity inflows to AFC from the Seychelles Pension Fund, the Government of Sierra Leone, the Republic of Togo, the Bank Central Guinea and other investments from the Ghana Infrastructure Investment Fund, which are among AFC’s 32 equity investors.
These investments reinforce active collaboration between African sovereigns, financial institutions and the private sector.
AFC has a proven track record in developing key transformational projects on the continent, providing pragmatic solutions to Africa’s infrastructure deficit and challenging operating environment.
The company recently announced its joint acquisition of Lekela Power, Africa’s largest Independent Renewable Power Producer (IPP), with plans to more than double the operating capacity of the operating assets within four years. . Other AFC projects include the ARISE Special Economic Zone (SEZ) in Gabon, an industrial ecosystem enhancing the forestry and mining industry, which was certified last year as the world’s first carbon-neutral industrial zone. by the Swiss verification group SGS.
PIC’s Chief Investment Officer, Kabelo Rikhotso, said, “PIC is delighted to partner with AFC in the development, industrialization and growth of the African continent. Our clients’ investment mandates allow us to invest in the rest of the African continent. We believe this partnership will help us fulfill this mandate and diversify our growing portfolio. We are confident about the future prospects of this investment and its potential positive societal benefits.
AFC’s investment footprint spans 35 countries across Africa and a pipeline of projects that combine positive social and environmental impact with superior risk-adjusted returns. The Company’s A3 investment rating from Moody’s provides advantageous access to global capital markets and underlines the confidence of African policymakers in AFC’s role as a key institution for sustainable economic development.
As a shareholder, PIC will further benefit from co-investment opportunities and access to AFC’s tremendous project development and risk-mitigated projects on the continent in the energy, transport and logistics, natural resources, telecommunications and heavy industry.
“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 that the continent urgently needs and we look forward to a long-term partnership for a prosperous African future. said Samaila Zubairu, President and CEO of AFC.
Established in 2007AFC and with $10 billion in 35 countries across Africa, the development lender has developed a reputation as the partner of choice in Africa to invest in and deliver high-quality instrumental infrastructure assets that deliver essential services in the basic energy infrastructure sectors. , natural resources, heavy industry, transport and telecommunications.