GEPF signs new unlisted Africa investment mandate with PIC

Previous mandate lapsed more than a year ago.
The developmental investment focus is on South Africa and the rest of Africa, according to the PIC. Image: Moneyweb

The Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) have signed a new mandate related to unlisted developmental investments in Africa.

The PIC confirmed the new mandate in a short statement on Tuesday, but did not reveal the value of the deal. However, Bloomberg reported that the agreement is worth around $1.6 billion (just over R25 billion).

If this figure is correct, then it is much lower than the GEPF’s previous unlisted developmental investment mandate with the PIC, which was valued at around R70 billion.

Tuesday’s confirmation from the PIC comes after its previous mandate with the GEPF lapsed more than a year ago, with negotiations around the new mandate taking place since March last year.

Read: GEPF freezes PIC’s R70bn mandate

The developmental investment mandate focus is on South Africa and the rest of Africa, according to the PIC.

Investments per entity

“The target of developmental investments for South Africa is between R300 million and R500 million per entity, although attractive investments starting at R100 million will be considered per entity,” it says.

“The rest of Africa developmental investment portfolio shall mainly comprise of investments between $20 million and $40 million.”

The GEPF, which is Africa’s largest pension fund, first introduced the unlisted developmental investment mandate in 1997 under the name Isibaya Fund. It has renewed this mandate with the PIC over the years.

Read: GEPF’s 2021 actuarial valuation released

Its developmental investment funds are targeted at increasing financial and socio-economic benefits by “addressing structural imbalances in the economy to facilitate transformation, economic growth, job creation, and environmental and financial returns”.

As the largest pension fund in Africa, the GEPF has assets in excess of R2.1 trillion, which are managed by the PIC.

Nondumiso Lehutso is a Moneyweb intern.

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