In a milestone for African pension capital being deployed for nationwide infrastructure and industrial improvement, the Public Funding Company (PIC), Africa’s largest asset supervisor, with over $150 billion in Belongings Underneath Administration, contains an inaugural funding in Africa Finance Company (AFC), the continent’s main infrastructure options supplier.
PIC has formally notified its intention to speculate $100 million in AFC. The funding accredited by the South African pension fund supervisor follows current fairness inflows to AFC from the Seychelles Pension Fund, the Authorities of Sierra Leone, the Republic of Togo, the Financial institution Central Guinea and different investments from the Ghana Infrastructure Funding Fund, that are amongst AFC’s 32 fairness traders. These investments reinforce lively collaboration between African sovereigns, monetary establishments and the personal sector.
AFC has a confirmed observe report in creating key transformational tasks on the continent, offering pragmatic options to Africa’s infrastructure deficit and difficult working setting. The corporate not too long ago introduced its joint acquisition of Lekela Energy, Africa’s largest Impartial Renewable Energy Producer (IPP), with plans to greater than double the working capability of the working belongings inside 4 years. . Different AFC tasks embrace the ARISE Particular Financial Zone (SEZ) in Gabon, an industrial ecosystem enhancing the forestry and mining business, which was licensed final yr because the world’s first carbon-neutral industrial zone. by the Swiss verification group SGS.
“PIC is delighted to associate with AFC within the improvement, industrialization and development of the African continent,” stated Kabelo Rikhotso, Chief Funding Officer for PIC. “Our shoppers’ funding mandates enable us to put money into the remainder of the African continent. We imagine this partnership will assist us fulfill this mandate and diversify our rising portfolio. We’re assured in regards to the future prospects of this funding and its potential optimistic societal advantages.
AFC’s funding footprint spans 35 nations throughout Africa and a pipeline of tasks that mix optimistic social and environmental impression with superior risk-adjusted returns. The A3 funding score assigned to the Firm by Moody’s offers advantageous entry to international capital markets and underlines the arrogance of African policymakers in AFC’s position as a key establishment for sustainable financial improvement.
As a shareholder, PIC will additional profit from co-investment alternatives and entry to AFC’s great undertaking improvement and risk-mitigated tasks on the continent within the vitality, transport and logistics, pure assets, telecommunications and heavy business.
“This fairness funding is a crucial vote of confidence in AFC and connects us to an important supply of capital in Africa,” stated Samaila Zubairu, President and CEO of AFC. “African pension funds have a key position to play in funding the instrumental infrastructure the continent urgently wants and we stay up for a long-term partnership for a affluent African future.”
