The PIC is exploring private credit across Africa as a means to diversify investments outside of South Africa. With a total of 8 billion rand invested in the last two years, they aim to increase this figure, particularly in infrastructure financing. The PIC emphasizes the importance of private markets and partnerships to effectively engage in these investments.
South Africa’s largest asset management firm, the Public Investment Corporation (PIC), views private credit as a significant growth opportunity throughout Africa. The organization aims to diversify its investments outside South Africa, having allocated approximately 8 billion rand to such opportunities in the last two years, as stated by Chief Investment Officer Kabelo Rikhotso during a conference in Cape Town.
The PIC’s strategy emphasizes the potential of private credit over equity investments in Africa, driven by the continent’s infrastructure financing needs. By leveraging partnerships and investing through intermediaries, the PIC aims to mitigate potential risks while maximizing growth opportunities in private markets. Their focus on lending rather than equity investment reflects a pragmatic approach to navigating the unique challenges within African markets.
Original Source: financialpost.com
