In a significant move to deepen cross-border investment collaboration, South Africa’s Public Investment Corporation (PIC) and the UK’s British International Investment (BII) have signed a memorandum of understanding (MoU) aimed at accelerating joint investment efforts across the African continent.
The agreement brings together one of Africa’s largest asset managers and the UK’s development finance institution, establishing a strategic framework for the two organizations to co-develop and pursue investment opportunities aligned with their shared development and financial mandates.
A Framework for Collaborative Investment
The MoU outlines a commitment to:
- Share deal pipelines, enabling both institutions to access and evaluate a broader range of high-impact investment opportunities.
- Collaborate across key sectors, including agriculture, financial services, infrastructure, and climate-related initiatives.
- Explore co-investments in debt, equity, and fund structures, leveraging their combined capital and expertise to unlock transformative projects.
This partnership is designed to maximize developmental impact while ensuring sustainable financial returns, particularly in undercapitalized sectors and regions.
Leadership Perspectives on the Partnership
Abel Sithole, outgoing CEO of the PIC, emphasized the importance of partnerships in the corporation’s pan-African investment strategy:
Our approach to investing across the continent is rooted in collaboration. This partnership with BII reinforces that strategy and enables us to deploy blended finance models that can unlock critical investments in infrastructure, industrialization, and intra-African trade. We are thrilled to see two major impact investors joining forces for Africa’s benefit.
Kabelo Rikhotso, PIC’s Chief Investment Officer, added:
Strategic cooperation is essential to fulfilling our clients’ investment mandates. This MoU opens the door to expanded investment activity across Africa. The ability to share deal flow and co-invest with a globally respected institution like BII enhances our capacity to deliver both impact and returns.
Leslie Maasdorp, CEO of BII, echoed the sentiment:
This partnership with PIC reflects our shared ambition to catalyze inclusive growth and sustainable development across Africa. By combining our resources and regional insights, we can unlock new opportunities for transformative investments that attract commercial capital and drive long-term economic progress.
Driving Impact Through Blended Finance and Regional Expertise
The collaboration between PIC and BII is expected to play a pivotal role in mobilizing capital for high-impact sectors that are often underserved by traditional investors. By leveraging blended finance models, the two institutions aim to de-risk investments, attract private sector participation, and support projects that contribute to job creation, climate resilience, and economic diversification.
This MoU also signals a broader trend of cross-continental partnerships between African and international financial institutions, reflecting a growing recognition that shared goals and pooled resources are essential to unlocking Africa’s full economic potential.