Signing Ceremony of PAIDF in Sandhurst at Sandton, Johannesburg, South Africa

​​South African Finance Minister, Trevor Manuel, flanked by his deputy, Honourable Jabu Moleketi, at the Signing Ceremony of the Pan African Infrastructure Development Fund (PAIDF) at Sandhurst, Sandton in Johannesburg South Africa held on the 8 June 2007.

Eight initial investors have raised US$625 million of the targeted $1 billion which will assist in addressing Africa’s critical shortage of equity investment in basic infrastructure. The PAIDF provides an investment opportunity for investors seeking exposure to infrastructure across the African continent. This forms part of efforts to achieve the Millennium Development Goals set out in the United Nations Millennium Declaration in September 2000, as well as to eradicate poverty and develop global partnerships for development.

“The PAIDF aims to create a financing platform for infrastructure development that will accelerate Africa’s growth to its target of a sustainable 7% per annum,” says PAIDF CEO Tshepo Mahloele. He says a key factor of the PAIDF’s investment focus will be cross-border projects resulting in greater regional co-operation and trade.

The PAIDF will provide long-term equity financing and other forms of investment – quasi equity, structured finance and high yielding debt, which will allow the fund to make above average returns on capital – will be considered. The fund will invest in regional infrastructure developments across the African continent with particular focus on energy, transport, telecommunication and water and sanitation.

In addition, the PAIDF will be a useful vehicle for pension funds as it has a long-term investment horizon of 15 years, presenting an opportunity to match pension fund liabilities. The bulk of public pension funds invested in European and American instruments will be used to underpin infrastructural growth, boost development and stop Africa from continuing as a net exporter of capital through investments and debt repayments. The continental nature of the fund will address the challenges faced by some national funds whose domestic markets are too small for them to invest nationally as they cannot cope with those volumes of capital. It will also address the challenge of countries with huge infrastructural projects, but without enough capital to finance them.

The fund will target investments that can generate cash flow as well as long-term capital appreciation for its investors. The initial investors are the South Africa’s Public Investment Corporation on behalf of the Government Employees Pension Fund, Development Bank of Southern Africa, ABSA Bank, Old Mutual, African Development Bank, the Standard Bank Development Group, Liberty Life, Ghana’s Social Security and National Insurance Fund and Metropolitan. Mahloele has confirmed that other private investors are expected to confirm their commitment during the course of 2007. Roadshows for the international capital raising will commence in August 2007.

Mahloele says the theme of the AU Summit, Grand Debate on the Union Government, links in with the PAIDF and its commitment to ensuring Africa begins to deal with its own issues, eliminates its dependency on aid and boosts development of the continent’s economy.

You may also be interested in the following articles

28 February 2025
Harith has partnered with global digital communications leader Cisco to turn its Sandton head office into Africa’s smartest building—a seamlessly connected, technology-driven space designed for efficiency, sustainability, and occupant comfort.
18 February 2025
The announcement made last year that a Harith-led consortium has acquired an infrastructure fund with stakes in assets including Lanseria International Airport and Kelvin Power Station for R6.5 billion earned Harith the much-sought-after Private Equity Deal of the Year award at the DealMakers Annual Gala Awards. This prestigious accolade cements Harith’s position as the leading Pan-African private equity infrastructure investment player on the continent.
26 September 2022
During the 2022 Global Citizen Festival that took place in Accra, Ghana, GC’s investment partner Harith announced that it has officially joined the United Nations framework convention on climate change’s race to net zero. Over the next two years, Harith will work closely with GC to develop near-term and long-term climate change targets. Harith CEO Sipho Makhubela and founder, group executive director, and GC patron, Tshepo Mahloele called on African governments and business leaders to join this critical endeavour.

COOKIE POLICY

Our site uses cookies to improve functionality. Continue if you are happy with this or learn how we use cookies by clicking here.