Linda Ensor

Political Correspondent

CAPE TOWN — The Public Investment Corporation (PIC), which manages assets worth about R600bn, had embarked on two major projects, Finance Minister Trevor Manuel disclosed yesterday.

One project is to assist with infrastructure development in Africa while the other will create a direct property investment fund which focuses on township and rural shopping centres in SA.

The PIC, which invests money on behalf of the Government Employee Pension Fund and other pension funds, has a portfolio including bonds, equities and properties. Assets under PIC management have grown more than 30% over last year’s figure of R400bn.

Addressing the National Assembly during his budget vote speech, Manuel said the PIC was participating in the creation of the Pan African Infrastructure Development Fund, into which pension funds on the continent would invest for 25 years.

“The initial focus of the fund will be transport infrastructure, energy, water and sanitation and telecommunication infrastructure investments. It will focus on projects that can contribute to regional integration of the continent and that will have regional impact,” Manuel said.

PIC CEO Brian Molefe said at a media briefing that the project would hopefully stimulate other investment to address the continent’s infrastructure backlog — estimated by the World Bank to be $120bn

Manuel also told MPs that the PIC had created Project Rural, the largest direct property investment fund to focus on township and rural shopping centres.

“The fund has a combined asset value of R1bn and is at the forefront of township and rural developments, with projects in the pipeline that will double the size of the fund over the next three years,” Manuel said.

Molefe expected the fund’s returns to be higher than those from properties in well-developed areas such as Sandton. He said he hoped to spend another R1bn on other properties over the next three years.

Manuel also announced that an overhaul of customs policy was in the pipeline. A green paper on customs modernisation would be released for public debate soon, he said.

“SA’s customs capability must be both modernised and significantly increased if we are to both facilitate trade to exploit opportunities and ensure better security of the trade supply chain and protection of our economy,” Manuel stressed.

South African Revenue Service commissioner Pravin Gordhan said the aim of the policy development would be to take the customs administration to “a new level of sophistication and capability in the face of developments in the Word Trade Organisation, the World Custom Organisation, African continent and within SA”.