South African pension fund manager Public Investment Corporation (PIC) has made a $100m commitment to infrastructure financier Africa Finance Corporation (AFC).
The $150bn manager’s investment follows recent capital commitments made to AFC from the Seychelles Pension Fund, the Government of Sierra Leone, the Republic of Togo, the Central Bank of Guinea and further investment from the Ghana Infrastructure Investment Fund, which are among the 32 equity investors in AFC.
AFC, established in 2007, is a multilateral financial institution, created by African sovereign states to provide solutions to Africa’s infrastructure deficit. The pan-African institution develops and finances infrastructure, natural resources and industrial assets.
AFC’s investment footprint spans 35 countries across Africa and a pipeline of projects that ”blend positive social and environmental impact with superior risk-adjusted returns”.
The institution’s most recent investment involves a joint venture with Infinity Group to buy Lekela Power, Africa’s largest renewable-energy independent power producer, from Actis and Mainstream Renewable Power in a $1.5bn (€1.47bn) deal.
Kabelo Rikhotso, Public Investment Corporation’s CIO said: “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.
”We are confident of the future prospect of this investment and its potential positive societal benefits.”
Samaila Zubairu, the president and CEO of Africa Finance Corporation, 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.”
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