PIC invests $40 million to become the 36th shareholder of Africa50

PIC invests $40 million to become the 36th shareholder of Africa50 - Trade Treasury Payments

The Public Investment Corporation (PIC), a South African government-owned investment fund that manages the Government Employees Pension Fund (GEPF), has invested $40 million to become Africa50’s 36th shareholder. Africa50 is a pan-African infrastructure investor and asset manager.

The PIC joins a shareholder group that includes 32 African countries, the African Development Bank, Bank Al-Maghrib, and the Central Bank of West African States (BCEAO). With more than $140 billion in assets under management, the PIC is among Africa’s largest institutional investors.

Alain Ebobissé, CEO of Africa50, said, “As Africa’s largest asset manager, the Public Investment Corporation of South Africa’s position as a shareholder sends a strong signal to the market about Africa50’s ability to deliver value for investors and economies. We see this development as a strategic partnership, where the PIC will benefit from Africa50’s project development expertise and geographic footprint, as we seek to accelerate infrastructure delivery across Africa, fostering sustainable development and economic growth”.

The investment is expected to extend Africa50’s reach in Southern Africa and broaden its base of African institutional capital (a stated objective for the platform).

Kabelo Rikhotso, the PIC’s Chief Investment Officer said, “We are excited about the investment in Africa50, as it aligns with our rest of Africa Investment strategy. Africa50’s extensive presence and expertise across the continent provides PIC with a valuable opportunity to achieve both financial and developmental objectives in line with our client mandates. This partnership will help address the slow pace of infrastructure development and address the significant infrastructure deficit in Africa. PIC remains committed to the African continent’s growth and looks forward to a strong strategic collaboration with Africa50 and our other partners to drive sustainable infrastructure investment”.

Africa50 has developed and co-financed a number of first-of-their-kind vehicles aimed at accelerating infrastructure delivery on the continent. These include:

Africa50 Infrastructure Acceleration Fund (IAF): Raised US$222.5 million at first close, primarily from African pension funds and insurance capital.

DRE Nigeria Fund: A US$500 million distributed renewable energy initiative, developed in partnership with the Nigeria Sovereign Investment Authority, the International Solar Alliance, and Sustainable Energy for All.

Alliance for Green Infrastructure in Africa (AGIA): A blended finance platform sponsored by the African Union, AfDB, and Africa50, aiming to mobilise US$500 million for green project development across key sectors.

PIC’s capital will support Africa50’s mission to mobilise African capital at scale and close critical infrastructure gaps to deliver commercially viable projects that generate long-term socio-economic value.