South African PIC to buy into Dangote sugar, oil refinery

By The Rainbow

The Public Investment Corporation (PIC), the South African government's wholly owned investment company, has said it will consider investing in more companies linked to Aliko Dangote.

The recent purchase of Dangote Cement shares and the plan to invest in other companies owned by DAngote is part of PIC's strategic initiative to tap industries benefiting from economic growth.

According to Bloomberg, Africa's largest asset manager,  bought a 1.5% stake in Nigeria's Dangote Cement Plc for $289.3 million (about R2.88 billion).

Fidelis Madavo, Head of Resources at PIC, Mr. Fidelis Madavo, was  reported to have said, the deal also offers opportunities to invest in Dangote's sugar, flour, oil refinery and port operations.

People who have deep knowledge about the  fund said it has set aside  $7 billion (about R70 billion) to invest on the continent and is targeting as many as 20 listed companies across industries such as consumer, infrastructure, telecommunications and agribusiness.

The PIC began expanding in the continent when it invested $250million (R2,49 billion) in Togolese lender Ecobank Transnational Inc. in 2012.

Dangote Cement is 'Sub-Saharan Africa's largest and most efficient cement producer,' Madavo said.

The company plans to expand significantly throughout sub-Saharan Africa, he added.

According to Forbes, Dangote is worth an estimated $16.1 billion (about R160 billion).

To date, the asset manager has invested R2.5 billion in 26 retail developments. These include the first full-service shopping malls in Soshanguve, GaRankuwa and Tembisa in Gauteng, as well as in several townships in Mpumalanga province.

The PIC was hugely involved in airport development in the run up to the 2010 World Cup.  As a result it holds a 20% stake in the Airports Company of South Africa (ACSA). ACSA expanded more than R19 billion to refurbish and extend OR Tambo International, Cape Town International and King Shaka International Airport in Durban in preparation for 2010.