Africa50 Group, the pan-African infrastructure investor and asset manager, has announced a $40 million investment from South Africa’s Public Investment Corporation (PIC), acting on behalf of the Government Employees Pension Fund (GEPF).
With this move, the PIC becomes Africa50’s 36th shareholder, joining 32 African nations, the African Development Bank (AfDB), the Central Bank of West African States (BCEAO), and the Bank Al-Maghrib.
The PIC, one of Africa’s largest asset managers with $141.5 billion in assets under management (AuM), brings significant financial muscle to Africa50’s mission of mobilizing African institutional capital for infrastructure development.
Strategic partnership to boost infrastructure development
CEO of Africa50, Alain Ebobissé, described the PIC’s entry as a strong market signal, stating:
“The PIC’s investment validates Africa50’s ability to deliver value for investors and economies. This partnership will leverage our project development expertise and continental reach to accelerate infrastructure delivery, driving sustainable growth.”
- PIC’s Chief Investment Officer, Kabelo Rikhotso, emphasized alignment with the firm’s “Rest of Africa” strategy.
- According to him, Africa50’s pan-African presence offers a unique opportunity to meet both financial and developmental goals.
“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,” he said.
He added that the collaboration would help to tackle Africa’s infrastructure deficit while delivering returns for its clients.
Catalyzing innovative investment vehicles
The PIC’s funding will further support Africa50’s pioneering initiatives, including:
- Africa50 Infrastructure Acceleration Fund (IAF): Africa’s first institutional infrastructure fund, which secured $222.5 million at first close.
- $500 Million DRE Nigeria Fund: A partnership with the International Solar Alliance (ISA), Nigeria Sovereign Investment Authority (NSIA), and Sustainable Energy for All (SEforALL) to finance distributed renewable energy projects.
- Alliance for Green Infrastructure in Africa (AGIA): A joint initiative with the African Union and AfDB targeting $500 million in blended finance for green infrastructure projects.
More insights
Earlier in March, the Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA) and Africa50 had announced an innovative partnership for a US$500 million DRE Nigeria Fund to develop and finance distributed renewable energy (DRE) projects in Nigeria.
- NSIA, SEforALL, and Africa50 signed the Fund’s Heads of Terms agreement at the SEforALL Global Forum in Barbados.
- The aim of the DRE Nigeria Fund is to raise financing to offer tailored financial instruments and attract private sector capital while addressing critical challenges such as currency volatility, tariff structures, and the limited availability of local currency financing options.
- Targeted investments will support mini-grids, solar home systems, commercial and industrial (C&I) power solutions, embedded generation projects, and innovative energy storage technologies.
A key objective of the Nigeria DRE Fund is to catalyze local currency funding from pension funds, insurance companies, and other local institutional investors.
