PIC chief executive Dan Matjila. Picture: Simphiwe Mbokazi/African News Agency (ANA) PIC chief executive Dan Matjila. Picture: Simphiwe Mbokazi/African News Agency (ANA)
THE PUBLIC Investment Corporation (PIC) yesterday added another feather to its continental cap with a massive $100million (about R1.47billion) equity investment to African Export-Import Bank (Afreximbank).
The country's largest investor said the stake would allow it to hold a shareholding in the Egypt-based Afreximbank lender. PIC chief executive Dr Daniel Matjila said the investment would be focused on advancing Africa's industrialisation, intra-regional investment and expanded access to services across the continent.
Matjila said it formed part of the corporation's strategy to invest 5percent of its assets in the continent. “We deliver on the rest of Africa mandate through a number of channels,” Matjila said. “One of the key means by which we achieve this is through partnerships. We are, therefore, pleased with the investment in Afreximbank, as it would enable and aid our investment programme in the rest of the continent.”
Afreximbank was founded by African governments and other investors in 1993 and had shareholder funds of $2bn. The investment was made on behalf of the Government Employees Pension Fund (GEPF) and has been approved by relevant local regulatory authorities.
The PIC recently acquired a 49percent equity stake in ETG Input Holdings, a subsidiary of the Export Trading Group and a 10percent equity stake in Kenya Electricity Generating Company, which is listed on the Nairobi Stock Exchange.
Matjila said the PIC was an active advocate of sustainable and impactful investing and regarded consideration of the environment, social and governance issues as important in any investment it makes.
“For this reason, we are impressed with Afreximbank's mission of stimulating a consistent expansion, diversification and development of African trade while operating as a first-class, profit-orientated, socially responsible financial institution and a centre of excellence in African trade matters. We have no doubt that the GEPF stand to derive a great benefit from this investment,” he said.
Afreximbank president Professor Benedict Oramah said opportunities for collaboration between Afreximbank and PIC existed in various areas.