The Public Investment Corporation (PIC) and British International Investment (BII) have embarked on an ambitious journey to enhance investment collaboration across Africa, encapsulated by a newly minted Memorandum of Understanding (MoU).
This agreement, signed recently, outlines a joint commitment by Africa’s largest asset manager and the UK’s prominent development finance institution to explore impactful investment opportunities that align with the continent’s sustainable economic growth mandates.
The MoU sets the stage for a collaborative approach, enabling both organisations to share deal pipelines and exchange promising investment opportunities across a diverse range of economic sectors, including agriculture, financial services, infrastructure, and climate initiatives.
This strategic partnership aims to facilitate regular dialogue and co-investment possibilities, pulling from the wealth of expertise each organisation brings to the table.
In their efforts to promote transformative development, the PIC and BII are poised to unlock new avenues for capital deployment that is crucial for the advancement of the African continent.
Central to the collaborative framework is a commitment to review investment opportunities across various asset types, including debt, equity, and funds.
The PIC’s strategic investment mandate centres on development-focused projects, targeting vital economic areas such as agriculture, manufacturing, mining, and infrastructure.
With a vested interest in unlisted entities within South Africa, the PIC is equally keen on championing development investments throughout the broader African continent.
Meanwhile, BII brings a legacy of over 75 years of investment in Africa, having deployed S$5.6 billion across 810 companies. The institution prioritises creating productive, sustainable, and inclusive economies by backing businesses that foster local growth, build vital infrastructure, and generate jobs—critical components in uplifting communities across the continent.
This week’s partnership announcement illustrates BII’s strategy to synergise with institutional investors, using its concessionary capital as a catalyst for mobilizing further commercial investments to support Africa’s development goals.
According to Abel Sithole, outgoing CEO of the PIC, the organization’s strategy of investing on the rest of the African continent is underpinned by investing through partnerships.
“The BII partnership cements this strategy and will enable the use of blended funding models to unlock investments that facilitate infrastructure development, industrialization and trade on the continent,” Sithole said.
“We are elated by the powerful force of two large impact investors working together for the benefit of Africa.”
Echoing these sentiments, the PIC’s chief investment officer, Kabelo Rikhotso, highlighted the crucial role that cooperation plays in fulfilling their investment mandates.
“We consider cooperation and partnerships as an important factor in our ability to deliver on client investment mandates. The signing of this MoU provides the opportunity to expand our investments across Africa,” Rikhotso said.
“Sharing deal pipelines and the potential for co-investment opportunities provides important prospects for cooperation between the PIC as an asset manager and the BII as a global development finance institution, committed to investing in emerging economies.”
Leslie Maasdorp, CEO of BII, emphasised the importance of this partnership, stating that it reflects a shared ambition to stimulate growth and enhance impact on the continent.
“By leveraging our combined expertise and resources, we can unlock new opportunities for transformative investments that support sustainable development, drive economic growth, and attract increased commercial capital into key sectors across Africa,” he said.
British High Commissioner to South Africa, Antony Phillipson, lauded the collaboration as a significant milestone in strengthening the UK-South Africa Growth Partnership.
“This landmark partnership between BII and the PIC marks a significant step forward in deepening the UK-South Africa Growth Partnership. It reflects our shared commitment to mobilising capital for sustainable development across Africa,” Phillipson said.
“This collaboration brings together two institutions with a strong track record and a common vision – to unlock inclusive growth, support resilient infrastructure, and create long-term opportunities in South Africa and across the continent,”
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