Genesis was asked to advise the Government Employees Pension Fund, the largest investor in Africa, on the establishment of a developmental investment strategy. With $66 billion under management, the GEPF is one of the biggest pension funds in the world and the largest single investor in Africa.
The purpose was to restructure its investment portfolio to have a greater developmental impact on the regional economy in the long-term.
We first conducted a comprehensive audit of the development trajectory of Southern Africa and identified areas that needed greater funding. Thereafter, we consulted widely, both internally with the GEPF trustees and externally in government and investment markets.
The structure we proposed was built on four investment pillars:
- Economic infrastructure (investments in energy, broadband, commuter transport, water, fuels and logistics);
- Social infrastructure (investments in affordable housing, healthcare, and education);
- Job creation and BBE (investments in SMEs; job intensive sectors; and B-BBEE transactions); and
- Investments in sustainability (investments in renewable and green projects).
In each of the pillars we identified one investible opportunity, along with principles to guide the selection of further investment opportunities.
The net result was the in-principle redirection of a $66-billion fund to consider developmental outcomes while preserving commercial returns – a shared-value archetype.