PIC to invest R70bn in SA’s development

South Africa’s Public Investment Corporation (PIC) - [http://logbaby.com/files/logo2/51b6d263c9187.jpg]

According to SAnews.gov.za The Public Investment Corporation (PIC) will put R70bn towards developmental investments in the next few years to drive economic growth and job creation.

Tabling the National Treasury Budget Vote on Wednesday, Finance Deputy Minister Mcebisi Jonas said the success of the PIC – a State-owned company that manages the money saved by the Government Employees Pension Fund (GEPF) — is critical to ensure that the GEPF will always be able to meet its obligations.

The PIC, wholly owned by government, is a registered financial services provider, with the Minister of Finance as shareholder representative.

“The PIC will invest R70bn in developmental investments in the next three to five years to drive economic growth and job creation,” says Deputy Minister Jonas in the National Assembly.

Agriculture and agro-processing, mining and beneficiation, manufacturing, infrastructure and real estate, social infrastructure and energy (renewable and conventional) will be the focus areas of the PIC investments.

The PIC will further allocate about R1bn towards investments in small and medium enterprises.

“These investments are expected to improve the risk profile of our client portfolios and deliver sustainable returns. The PIC has allocated a further R5bn towards job saving in vulnerable sectors such as mining, construction and manufacturing,” says Deputy Minister Jonas.

The Chief Executive Officers of the PIC and Standard Bank are co-chairs of a working group to drive key investment projects in targeted sectors. The group is an initiative between government and the private sector.

This working group is aimed at getting government, labour and the private sector to identify a core set of priority economic sectors and enterprises, said the Deputy Minister.