Isibaya

The PIC promotes development and inclusive growth through its Unlisted Developmental Investments, which create both social and financial returns. Social returns include, but are not be limited to the facilitation of job creation, economic empowerment and the transformation of the companies and sectors where the PIC invests. The Unlisted investment mandate is effectively delivered through the following approaches:
 

• Direct investments;  

• Co-investments and Partnerships; and  

• Indirect investments.
   

Unlisted Investment Portfolios

Investments are made in the four primary portfolios listed below:

Developmental Investments South Africa Portfolio

The Developmental Investments South Africa Portfolio's purpose and objective is to invest in unlisted South African entities to achieve the defined return and developmental objectives.

The portfolio is sector agnostic, however, it places a specific emphasis on the following sectors:  

• Agriculture – Agriculture is the cultivation and processing of agricultural products such as crops, plants and livestock;
• Mining – Mining is the production or extraction of metals and minerals from the ground;
  
• Manufacturing – Manufacturing is the process of using industrial units to change the physical or chemical transformation of materials or other components into new products;
  
• Financial Services – Financial services include provision of banking, thrifts, and mortgage finance, specialised finance, consumer finance, asset management and insurance companies; and
  
• Financial Inclusion – Financial inclusion is defined as the provision of access to useful and affordable financial products and services delivered in an ethical and sustainable manner.
  

Developmental Infrastructure Investments South Africa Portfolio

The Developmental Infrastructure Investments South Africa Portfolio's purpose and objective is to invest in unlisted South African entities, established for the purposes of developing and/or maintaining infrastructure with the goal of achieving the outlined return and developmental objectives.  

This encompasses the key infrastructure categories listed below:  

• Economic Infrastructure – Investments in economic infrastructure include energy infrastructure, logistics networks, water infrastructure and commuter transportation;
• Environmental Infrastructure – Environmental infrastructure is defined as investments that improve environmental sustainability to mitigate climate change, and promote renewable energy, energy efficiency, recycling, and clean technology; and
  
• Social Infrastructure – Financing into the affordable housing, healthcare and education sectors.

Funding investment duration – five (5) to fifteen (15) years but dependent on the specific sector and opportunity.

Developmental Investments Rest of Africa Portfolio

The Developmental Investments Rest of Africa Portfolio's purpose and objective is to invest in unlisted African (excluding South Africa) entities in order to achieve the defined return and developmental objectives. The portfolio is sector agnostic with focus on intermediaries.

Developmental Investments in Intermediaries in South Africa Portfolio

The Developmental Investments in Intermediaries in South Africa Portfolio's purpose and objective is to provide capital to intermediaries to invest in South African entities to achieve the defined return and developmental objectives.

The areas of emphasis include:  

• SME financing – refers to debt investments in SMEs made through intermediaries (SMEs being enterprises smaller than the highest category turnover limit set for medium enterprises as per the criteria in the National Small Enterprise Act, 1996);
• Midmarket Private Equity – commitments to private equity funds targeting companies with turnover greater than the highest category as per the National Small Enterprises Act, 1996; and
• Senior Debt – refers to unlisted loans, asset-backed notes, credit-linked notes and unlisted bonds.
  

Investment decision guiding principles

All investment decisions are influenced by the following general principles:

• Investments must be made in projects which are able to provide positive sustainable long-term returns; and
• Contributing to and supporting positive, long-term economic, social, and environmental outcomes for South Africa and the Rest of the African continent, such as making South Africa more economically competitive, reducing social backlog, greening the economy, facilitating jobs and supporting transformation.
• Principle of impartiality;
• Principle of diversification;
• Principle of transparency; and
• Principle of Environmental, Social and Governance discipline (ESG).