By Hilary Mare
SOUTH Africa’s biggest asset management firm, the Public Investment Corporation (PIC), has made about N$80 billion available, which is to be injected into Namibia’s economic infrastructure space.
PIC Chief Executive Officer, Dan Matjila, who was in Namibia this week to deliberate on private equity and infrastructure investments, at the invitation of Eos Capital, told Confidente that five percent of the corporation’s total assets of N$1.6 trillion was ready to be injected into any good viable infrastructure projects.
“Yes, we have N$80 billion to deploy in Namibia, and possibly other countries on the continent, if we do not get enough projects in this space. All we want is for Namibia to show us good projects worth investing in, particularly in the economic infrastructure space, so that we invest and give Namibia increased opportunities to stimulate economic growth and progress on various levels,” he said.
Established in 1911, the PIC manages N$1.6 trillion in pensions on behalf of the Government Employee Pension Fund. The State asset manager is a main shareholder in the country’s major banks, which together have assets of roughly N$4.8 trillion, according to a PwC banking survey.
At the end of 2016, the PIC owned about 6.9 percent of Absa, 6.2 percent of Nedbank, 11.8 percent of Standard Bank, 9.5 percent of First Rand and 7.4 percent of Capitec. The firm is wholly owned by the South African government, with the minister of finance as the shareholder representative.
Elaborating on the target industries, in which the PIC was likely to invest, Matjila highlighted that SMEs will not be left out, as long as they are active participants in economic infrastructure development.
“We can also invest in SMEs, who partake in the industries that have a bearing on economic development and progress. We seek to target industries across all sectors of the economy, such as transport, energy, manufacturing, rail, renewable energy sources and others,” he added.
The PIC’s main investment objectives are to achieve strong long-term capital returns, above clients’ benchmarks. This is supported by robust risk management, while contributing to the broader social and economic development of South Africa and the rest of Africa.
“Our strategy includes building a portfolio around our clients’ requirements, diversified by sector, geography, duration and size. The PIC follows a robust investment strategy, which stems from its investment philosophy across all asset classes,” Matjila said.
He added that it was important to note is that the PIC is “not a short-term investor”, and all investments are managed with the objective of ensuring that the growth in client assets meets or exceeds the growth in their liabilities.
Confidente. Lifting the Lid. Copyright © 2015