Asset manager PIC set to invest $100m in AFC

The Public Investment Corporation, Africa’s largest asset manager has given formal notification to make a $100 million inaugural equity investment in the Africa Finance Corporation, the continent’s leading infrastructure solutions provider.

The approved investment from 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 Central Bank of Guinea and further investment from the Ghana Infrastructure Investment Fund, which are among the 32 equity investors in AFC, according to a statement on Tuesday.

It said the investments further embedded the active collaboration between African sovereigns, financial institutions and the private sector.

“The PIC is delighted to partner with the AFC in the development, industrialisation and growth of the African continent,” said the Chief Investment Officer for PIC, Kabelo Rikhotso. “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.”

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, according to the statement.

It said as a shareholder, PIC 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.

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