South Africa’s biggest asset manager seals landmark deal

South Africa’s Public Investment Corporation (PIC) and British International Investment (BII) have signed a Memorandum of Understanding to accelerate collaboration in investments across the African continent.

This agreement establishes a framework for the PIC and BII to jointly explore and pursue impactful investment opportunities, aligning their mandates and resources to drive sustainable economic growth and development across the continent.

The memorandum outlines a commitment to sharing deal pipelines, facilitating the exchange of promising investment opportunities across various economic sectors, such as agriculture, financial services, infrastructure, and climate initiatives.

The partnership will foster regular dialogue and explore co-investment possibilities, leveraging the expertise of both organisations to maximise impact.

By combining their strengths, the PIC and BII aim to unlock new avenues for capital deployment and contribute to transformative development across Africa.

The organisations have committed to reviewing investment opportunities in debt, equity, and funds.

The PIC has an investment mandate that enables it to capitalise on development-focused projects. Its development mandate incorporates broad areas, including investments in unlisted South African-based entities.

The PIC focuses on sectors such as agriculture, manufacturing, mining, financial services, economic, environmental, and social infrastructure, and developmental investments in the rest of Africa.

On the other hand, the BII has been investing in Africa for over 75 years, providing long-term capital that supports the growth of productive, sustainable and inclusive economies. 

With a portfolio of $5.6 billion invested across 810 companies in Africa, the DFI uses its capital to back businesses that drive local economies, build infrastructure that connects people, and create jobs and services. 

The partnership with the PIC forms part of BII’s strategy to work with institutional investors and use its concessionary capital to create ways in which more commercial capital can be deployed to support development in Africa.

Unlocking value

Outgoing PIC CEO Abel Sithole said the organisation’s strategy of investing on the rest of the African continent is underpinned by investing through partnerships. 

“The BII partnership cements this strategy and will enable the use of blended funding models to unlock investments that facilitate infrastructure development, industrialisation and trade on the continent,” Sithole said. 

“We are elated by the powerful force of two large impact investors working together for the benefit of Africa.”

PIC Chief Investment Officer Kabelo Rikhotso said cooperation and partnerships are essential factors in the PIC’s ability to deliver on client investment mandates. 

“Sharing deal pipelines and the potential for co-investment opportunities provides important prospects for cooperation between the PIC as an asset manager and the BII as a global development finance institution, committed to investing in emerging economies,” Rikhotso said.

BII CEO Leslie Maasdorp said this partnership with the PIC exemplifies their shared ambition to drive growth and increase impact across the continent. 

“By leveraging our combined expertise and resources, we can unlock new opportunities for transformative investments that support sustainable development, drive economic growth, and attract increased commercial capital into key sectors across Africa,” Maasdorp said.

The British High Commissioner to South Africa, Antony Phillipson, said this landmark partnership marks a significant step forward in deepening the UK-South Africa Growth Partnership. 

“It reflects our shared commitment to mobilising capital for sustainable development across Africa,” he said. 

“This collaboration brings together two institutions with a strong track record and a common vision – to unlock inclusive growth, support resilient infrastructure, and create long-term opportunities in South Africa and across the continent.”