The New Partnership for Africa’s Development (NEPAD) - the African Union’s economic development programme and Africa investor (Ai) an institutional investment platform for Africa’s leading pension and sovereign wealth funds, launched the NEPAD 5 percent Agenda at the Africa investor CEO Institutional Investment Summit at NASDAQ today, during the UN General Assembly.
The event gathered African Pension and Sovereign Fund leaders, international institutional investors, members of the PIDA Continental Business Network (CBN), (a NEPAD CEO infrastructure investment leaders dialogue platform on PIDA) and African, G7 and G20 public sector officials and policy makers.
The NEPAD 5% campaign launch was opened by Dr Ibrahim Mayaki, CEO of NEPAD and Chaired by Hubert Danso, CEO and Vice Chairman of Africa investor.
Speaking at the launch Hubert Danso, CEO and Vice Chairman of Africa investor said, "The oversubscribed Ai CEO Institutional Investment Summit was delighted to partner and host the launch of the NEPAD 5% Agenda, a partnership between African Institutional Investors (pension and sovereign wealth funds) and African governments, to mobilise US$30bn, through a new partnership framework, entitled Institutional-Investor Public Partnerships (IIPP’s). The NEPAD 5% agenda, which has the full support of the African Sovereign Wealth and Pension Fund Leaders Forum, is designed to facilitate an increase in African investment allocations to 5% of assets under management, (from the current average of 1.5%), to African infrastructure assets within 5 years". Danso went on to say, "the 5% framework will also be catalytic is attracting global co-investment partnerships with international pension and sovereign funds, commanding over US$30 trillion of assets under management, seeking the type of returns offered by African infrastructure assets once de-risked by the presence and participation of African asset owners as co-investment partners.
For long-term investments of pension and sovereign wealth funds in large-scale infrastructure projects in Africa, there is a need to address a variety of issues. It is crucial to reform national and regional regulatory frameworks that guide institutional investment in Africa. Additionally, new and innovative capital market products need to be developed that can effectively de-risk credit and allow African asset owners to allocate capital to African infrastructure as an investable asset class.
The NEPAD 5 percent Agenda is an African owned and led agenda. Speaking at the official launch, Hon. Jeff Radebe, Minister in the Presidency: Planning, Monitoring and Evaluation, Government of South Africa, representing the Presidential Champions Infrastructure Initiative (PICI) pledged the support of PICI Heads of State to partner and implement reforms and institutional investor public partnerships with African institutional investors, a message that echoed by H.E. Dr. Moussa Faki Mahamat, Chairperson of the African Union Commission.
Dr Ibrahim Assane Mayaki, NEPAD, CEO speaking at the event said, "Infrastructure plays a crucial role in supporting the Continent’s growth. At the same time, it can represent an innovative and attractive asset class for institutional investors with long-term liabilities. By launching the 5 percent campaign in New York, we invite investors to take advantage of the wide-ranging opportunities Africa has to offer and to move forward with what can only be a win-win partnership".
Launch partners included, The African Union Commission, NEPAD, Africa investor, UNECA, GIZ and the Trade & Development Bank.
