I read with surprise that the Public Investment Corporation (PIC), which invests state employees’ pension savings on behalf of the Government Employees Pension Fund, is going to invest circa R1.6bn in the African Finance Corporation (AFC).
I am not against the AFC, which has investments in infrastructure in more than 30 countries in Africa. The issue for me, given the investment priorities in SA in areas such as clean/renewable energy, roads and housing, is should the PIC not be focusing on infrastructure projects here at home, where there is such dire need?
It was also not explained in the announcement what returns are expected, and over what period, from such a huge maiden investment in the AFC. The PIC is one of the biggest investors in JSE-listed companies, and it does look as if some, if not most, of these investments are passive to the point where PIC executives seldom attend investee companies’ AGMs.
The last we saw of any investor activism was during the time when Brian Molefe was PIC CEO. He attended most of the AGMs and asked tough questions. Some of these resulted in the companies concerned addressing issues such as transformation. I hold no brief for Molefe, but his activism showed that the PIC was alive to its investments and looked after workers’ pension monies.
For the PIC to argue through investment officer Kabelo Rikhotso that such a huge investment will help diversify the investment portfolio is actually irrelevant given the need for investment in SA. R1.6bn would have helped a good few businesses in SA, especially black-owned companies, invest in home grown projects.
Surely for a public organisation such as the PIC charity should start at home?
Douglas Ramaphosa
Chair, IRCA Global southern hemisphere
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