PIC makes $100m equity investment in African Export-Import Bank

The Public Investment Corporation (PIC) has made an equity investment of $100m in the African Export-Import Bank (Afreximbank), a leading pan-African multilateral financial institution which finances intra- and extra-African trade.

The PIC — which has more than R2-trillion in assets under management on behalf of the Government Employees Pension Fund (GEPF), the Unemployment Insurance Fund (UIF) and the Compensation Fund — said in a statement on Thursday that the investment in the bank was in line with the PIC’s mandate to invest 5% of its assets under management in the rest of Africa.

The investment was made on behalf of the GEPF and has been approved by the relevant South African regulatory authorities.  

Commenting on the investment, PIC CEO Daniel Matjila, said the investment in Class B shares of Afreximbank would assist PIC's investment strategy in Africa. “We deliver on the rest of Africa mandate through a number of channels. One of the key means by which we achieve this is through partnerships. We are, therefore, pleased with the investment in Afreximbank, as it will enable and aid our investment programme across the rest of the continent," Matjila said.

"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-oriented, socially responsible financial institution and a centre of excellence in African trade matters. We have no doubt that the GEPF stands to derive a great benefit from this investment.”

Prof Benedict Oramah, president of Afreximbank, welcomed the PIC’s investment and said that opportunities for collaboration between Afreximbank and PIC existed in various areas. “We are particularly looking forward to collaborating with the PIC in advancing Africa’s industrialisation, intra-regional investment, and expanded access to services across the continent.”