infrastructure

Press Release: The Ai African Infrastructure Co-Investment Platform partners the PPI on investments in Africa

Wednesday, 10 May 2017

Durban, Nairobi, Lagos, New York, San Francisco; 2 May 2017: Africa investor (Ai), the leading Pan-African platform for African institutional investors and the Pacific Pension & Investment Institute (PPI), a global organization for pension funds, sovereign wealth funds, endowments, foundations and commercial asset managers, today announced that the PPI Infrastructure Working Group (PPI-IWG) have partnered with Ai, to bring awareness to US, Asian, Pacific Rim and global asset owners about the (Ai) African Pension and Sovereign Wealth Fund Infrastructure Co-Investment Platform.

Domestic institutional investors’ exposure to African infrastructure as an asset class is estimated to be less than 1.5% of African pension and sovereign fund assets. At the same time, the African continent is estimated to have an annual infrastructure financing gap of at least $50 billion. This presents a unique alignment with the needs and strategies of long term investors, such as pension and sovereign funds.

Ai’s consultations with public and private sector leaders highlighted key challenges preventing institutional investment into African infrastructure. The main challenges are primarily due to underinvestment in the development of a sizeable pipeline of investable infrastructure opportunities and the disintermediation of asset owners in the policy making process, designed to encourage the long-term pension and sovereign investors to invest in African infrastructure as an asset class.

To address this, Ai launched the African Pension and Sovereign Wealth Fund Infrastructure Co-Investment Platform. The Platform exists to support African asset owners with originating and accessing infrastructure co-investment opportunities. It also assists African policy makers and project developers to create an hospitable environment for developing an investable pipeline of infrastructure assets that are capable of attracting long-term investment from African and international pension and sovereign investors.

The goal of the PPI-IWG is to pursue actionable steps that address the need and desire for further infrastructure investment around the world. PPI’s global network of members is uniquely placed to alter the current trajectory of the underinvestment in Africa’s infrastructure landscape. With more than 12 trillion (USD) in assets under management, advisement and administration, their membership is comprised of some of the largest and most innovative asset owners active in today’s markets.

Commenting on the partnership, Hubert Danso, CEO and Vice Chairman at Ai, said "The PPI was at the forefront of building ties between US and Asian asset owners to catalyse the infrastructure investment market in Asia and the Pacific Rim. We are therefore delighted to have their partnership and the benefit of their experience to assist us in facilitating African infrastructure co-investments and coordinated policy perspectives. Such initiatives will empower policy makers to create a more conducive environment for global institutional investors in order to advance critical infrastructure investments originated by African pension and sovereign wealth funds."

Commenting on the partnership, Lionel Johnson, President PPI said "Our IWG initiative was conceived to address the lack of coordination between the asset owners seeking to invest and the myriad of institutions that are active in the infrastructure investment marketplace. The partnership with Ai aligns with those goals and provides our members and the pension-sovereign fund investor community at-large with a deeper understanding of the tools in place to address the need for investment. This partnership’s focus on Africa is an important connection point for our holistic approach to the issues."

About the Ai African Sovereign Wealth And Pension Fund Forum - www.aiswpff.com

The Ai African Sovereign Wealth and Pension Fund Forum (ASWPFF) is a high-level platform for African Sovereign Wealth and Pension Fund (SWF & PF) leaders to network and share best practices on key issues related to improving the investment environment for long term intra-African investment. It hosts the Ai African Pension and Sovereign Wealth Fund Infrastructure Co-Investment Platform a dedicated platform to assist originate infrastructure co-investment opportunities for asset owners working in Africa.

The Forum fosters and facilitates inbound investment in the continent’s financial markets, together with Northern Hemisphere asset owners and supranational institutions. The ASWPFF builds on a series of Ai-led consultations and events for African SWF & PF leaders to assess and determine existing barriers to investment in Africa - including non-listed assets such as infrastructure.

About the PPI - www.ppi.institute
Pacific Pension & Investment Institute (PPI) convenes global pension and investment thought leaders for in-depth dialogue and knowledge sharing on issues facing long-term institutional investors in Asia, the Pacific Rim, and worldwide. PPI is a global organization with individual and institutional members from leading pension funds, sovereign wealth funds, endowments, foundations, commercial asset management and other investment experts. With over 12 trillion USD in assets under management, advisement and administration, our membership represents a powerful force in the global economy.

Contacts:
Africa investor, David Ruwodo: +27 11 783 2431; druwodo@africainvestor.com
PPI, Mark Mancao; +1.415.576.1187: mmancao@ppi.institute