South Africa's unemployment rate rose in the third quarter
The Public Investment Corp (PIC), which manages most of the GEPF's money, committed R5-billion to an environmental sustainability fund, R3-billion for a "priority sectors" fund and R5-billion for a private-equity fund, the Pretoria-based fund said in a statement on Wednesday.
The environmental fund will invest in renewable energy and create about 3 000 jobs, while the priority sectors fund will target employment in manufacturing, agriculture, tourism and mining.
"It is prudent to invest in projects that contribute to economic growth and job creation," said the GEPF's principal officer John Oliphant.
The government's pension fund, which manages more than R1-trillion, plans to invest 5% of its assets, or about R60-billion, in projects that aim to sustainably develop the country while also providing financial returns. The GEPF and the PIC also aim to invest in other African countries. Last year, the PIC invested $250-million in Togolese lender Ecobank Transnational Inc., Africa's most geographically diverse bank.
While the new private equity fund will concentrate on medium-to-large capital buyouts and mergers and acquisitions in South Africa, the GEPF said it also wants to start an infrastructure fund and a private equity fund for the rest of Africa before the end of the year. – Bloomberg