PIC to put R1.6bn in AFC for African infrastructure

The Africa Finance Corporation (AFC), a driving force behind private sector-led infrastructure investment across Africa, will receive an initial $100 million (R1.6 billion) investment from the Public Investment Corporation (PIC).

AFC has a 35-country investment presence across Africa, an A3 investment-grade rating from Moody’s, and a pipeline of projects that combine beneficial social and environmental impact.

In order to more than double the operating capacity of the operating assets within four years, AFC, for instance, recently announced its joint acquisition of Lekela Power, Africa’s largest independent renewable energy producer.

Chief Investment Officer for PIC, Kabelo Rikhotso, stated: “We believe that this partnership will assist us in carrying out that mandate and in diversifying our expanding portfolio.”

With more than $150 billion in assets under management, the PIC is Africa’s largest asset manager. As a shareholder, it was stated that it would additionally profit from co-investment opportunities and access to the AFC’s formidable project development and risk-mitigated projects across the power, transport and logistics, natural resources, telecommunications, and heavy industrial sectors on the continent.