Africa Strategy. Together for Africa. Brenton Lee Lalu Senior Research Analyst (Africa), Public Investment Corporation (SOC) Limited South Africa

Transcription

1 Africa Strategy Together for Africa 2018 Brenton Lee Lalu Senior Research Analyst (Africa), Public Investment Corporation (SOC) Limited South Africa

2 Our strategy and focus is strongly entrenched in driving Impact Investing Strategy & Focus: Vision 2030 Incorporating strong investment governance Entrenched Environmental, Social investment processes Investment in our people and creating brand ambassadors Optimal Information Technology Robust Risk Management Insightful Research and Enterprise Intelligence Innovative Culture 2

3 The Africa Rise is real Negative GDP growth 0-2.9% 3-4.9% 5% + Source: PIC Research, Oxford Economics, EY 3

4 We have several delivery channels for Africa Private Equity Developmental Investing Listed External Managed Funds Fund of Funds (Unlisted) Development Finance Institutions Source: PIC Research 4

5 Reworking the Traditional PPP model Public Private Planning Partnerships Source: PIC Research 5

6 Southern Africa & SADC are our core focus area s Source: PIC Research 6

7 Goveranance We assess the level of risk involved in our investments 60 Low EOD, High Governance High EOD, High Governance Low EOD, Low Governance High EOD, Low Governance EOD (Economic, Operating & Demographic) Source: PIC Research, World Bank, IMF 7

8 Developmental & Social need in Africa More than extractive, beneficiation and the need for development drives investment Extractive sectors Africa is more than extractive Digitization Business services Financial services Renewable Energy Property/ Construction Retail Life Sciences Education Manufacturing Agriculture Infrastructure Source: PIC Research, FDI Intelligence & EY,

9 Culminating in aligning key investment themes & needs in Africa to regions & countries Infrastructure Manufacturing Properties Energy Tech & connectivity Consumer Agriculture & Agro processing Source: PIC Research 9

10 ESG importance in financial performance of a company Strong financial returns α Strong ESG in portfolio management α The PIC stance The PIC believes considering and incorporating ESG factors in the investment process improves the risk-return profile. Environmental Compliance with environmental management regulations. Care for the communities in which we operate. ESG integrated into investment process Social Governance Compliance with regulations and international standards and the promotion of B-BBEE. A Transformation Policy will have to be submitted. Improving governance structure within the investments in line with UN Global Compact ( UNGC ), UN Principles for Responsible Investing ( UNPRI ), King IV Principles and Government regulations. Source: PIC Research 10

11 Thank you 11

12 Public Investment Corporation SOC Limited Disclaimer Public Investment Corporation SOC Limited (PIC), Registration number 2005/009094/30, is a licensed financial services provider, FSP 19777, approved by the Registrar of Financial Services Providers ( to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002). The PIC is wholly owned by the South African government, with the Minister of Finance as a shareholder representative. Products offered by the PIC do not provide any guarantees against capital losses. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full invested amount. Past performance is not necessarily a guide to future investment performance. Personal trading by staff is regulated to ensure that there is no conflict of interest. All directors and employees who are likely to have access to price sensitive and unpublished information in relation to the Public Investment Corporation are further regulated in their dealings. All employees are remunerated with salaries and standard short-term and long-term incentives. No commission or incentives is paid by the PIC to any persons and all inter-group transactions are done on an arm s length basis. The PIC has comprehensive crime and professional indemnity insurance. Directors: Dr Xolani Mkhwanazi (Deputy Chairperson) Dr Daniel Matjila (Chief Executive Officer), Ms Matshepo More (Chief Financial Officer) Ms Sandra Beswick, Mr Trueman Goba, Ms Dudu Hlatshwayo, Dr Claudia Manning, Ms Mathukana Mokoka, Mr Pitsi Moloto, Ms Tantaswa Nyoka, Ms Lindiwe Toyi, Ms Sibusisiwe Zulu Company Secretary: Ms Bongani Mathebula For more details, as well as for information on how to contact us and how to access information please visit 12