PIC to invest $100 million in Africa Finance Corporation

The Public Investment Corporation (PIC) has officially announced its intention to invest 100 million dollars (1.65 billion rand*) in the multilateral financial institution Africa Finance Corporation (AFC).

The investment will be the PIC’s first such contribution to AFC, which is headquartered in Nigeria, and will be used for the continent’s infrastructure and industrial development efforts.

According to AFC, the PIC investment will provide it with “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”.

“PIC is delighted to partner with AFC in the development, industrialization and growth of the African continent. We are confident about the future prospects of this investment and its potential positive societal benefits. According to the CIO of the PIC, Kabelo Rikhotso, in a statement released on Tuesday.

“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,” adds Rikhotso.

AFC Chief Executive Officer Samaila Zubairu said the PIC equity investment is an “important 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 funding the instrumental infrastructure that the continent urgently needs and we look forward to a long-term partnership for a prosperous African future,” adds Zubairu.

With this investment, the PIC joins AFC’s cohort of 32 equity investors, including the Seychelles Pension Fund, the Government of Sierra Leone, the Republic of Togo, the Central Bank of Guinea and the Ghana Infrastructure Investment Fund.

As Africa’s largest asset manager, PIC has over R2.34 trillion in assets under management, with its largest client, the Government Employees Pension Fund (GEPF), accounting for 89% of its assets.

Invest in South Africa

AFC was established in 2007 with the aim of becoming the primary driver of private sector-led infrastructure investment across Africa and has an investment presence in 35 African countries, including South Africa.

AFC recently revealed its joint acquisition of Dutch company Lekela Power – Africa’s largest independent renewable power producer – with Egyptian company Infinity Group, in a deal estimated to be worth more than $1 billion. of dollars.

Read: Africa’s largest renewable energy IPP to be sold to an Egyptian company

Every year, Lekela Power supplies around 564,000 MWh of clean energy to South Africa’s overloaded national grid through its Khobab wind farm, based in Loeriesfontein, in the northern Cape. The wind farm would support around 170,000 households in the country.

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*US$1 = R16.57

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