Sanlam Investments launches infrastructure fund

Sanlam Investments is launching a sustainable infrastructure fund seeking to raise R5 billion. This comes after the South African government invited the private sector to partner it in investing in infrastructure development. Ockert Doyer, Head of Credit at Sanlam Investments joins CNBC Africa for more.

Thu, 02 Sep 2021 12:09:18 GMT

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AI Generated Summary

Sanlam Investments launches the Sustainable Infrastructure Fund to invest in essential infrastructure projects in South Africa, focusing on social and economic infrastructure sectors.
The fund targets institutional investors, offering stable inflation-beating returns and aims to raise five billion rand to address the country's significant funding gap.
A rigorous due diligence process is in place to assess risks, financial viability, and project partners with a focus on sustainability and long-term impact.

Sanlam Investments has recently announced the launch of the Sanlam Investment Sustainable Infrastructure Fund, which aims to invest in essential infrastructure projects in South Africa. These projects will focus on both social infrastructure such as schools, hospitals, and clinics, and economic infrastructure including water investments, transportation sector, ICT, and energy space. This initiative comes at a crucial time as South Africa has been facing significant underinvestment in infrastructure, leading to low economic growth and high levels of unemployment. The fund has started with a commitment of 500 million rand and aims to raise a total of five billion rand from third-party investors. Institutional investors are being targeted, promising stable inflation-beating returns of inflation plus four and a half percent. The fund aims to deliver these returns by investing in long-term infrastructure assets with a focus on sustainability. The due diligence process for selecting projects will involve assessing risks, analyzing financial viability, and evaluating the capabilities of project partners. Sanlam Investments is primarily focusing on investments in South Africa, given the significant funding requirement of 6.4 trillion rand within the country over the next few decades. The company is also exploring opportunities in the rest of the continent, leveraging its extensive footprint across various markets. One key aspect of the fund's strategy is to measure and monitor the impact of its investments on society. An impact framework has been established to track indicators such as job creation, economic development, and poverty alleviation. Through initiatives like the agricultural irrigation project, the fund aims to create both short-term and long-term positive impacts on local communities. By aligning with the national development plan, Sanlam Investments is committed to not only delivering financial returns but also contributing to social progress and sustainability.