Old Mutual eyes opportunities in Nigeria
by TINTSWALO BALOYI
JOHANNESBURG – THE Old Mutual Investment Group outlined plans to grow its presence in West Africa, particularly in Nigeria.
Said to be the largest private sector investor in Africa, the South African-headquartered company has embarked on a capital-raising programme to increase its investment in sustainable projects on the continent by a further $1-billion over the next two years.
The company, which has more than US$5,1 billion in Pan African investment beyond South Africa, is already well established in Southern and East Africa.
However, the new tranche of investments will see it West Africa, with Nigeria the focal point, said officials.
Old Mutual Investment Group’s Director of Investment, Hywel George, says the company is set to capitalise on its unique advantage as a market leader on the continent and will continue to implement strategies in line with the projected future impact of Africa’s growing economies on investment returns.
George said the investment focus is largely directed at sustainable projects around key development themes which also go beyond listed equity.
These include alternative investment and fixed interest arenas such as low carbon energy, education, affordable housing, infrastructure real estate, agriculture and unlisted debt, diversified across countries, asset types, managers, and economic/inflation cycles.
“Over the past few years we have made a meaningful impact in the region by committing investment funding of around $500m across this broad array of investments,” said George.
By investing in schools, housing and infrastructure, we are not only supporting the development of the continent and making a lasting, positive
impact on the social landscape, but also ensuring sustainable returns for investors.
“While private equity investments on the continent remain long term and illiquid, they are giving us net real returns of 2 percent to 3 percent above listed assets.”
– CAJ News
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