The Pembani Remgro Infrastructure Fund, a combined venture between former MTN chief executive Phuthuma Nhleko’s Pembani Group and Johann Rupert’s Remgro, announced on Wednesday it had raised $245 million to invest in infrastructure on the African continent.
The Pembani Remgro Infrastructure Fund was founded in 2012 by Rupert and Nhleko as a way to address Africa’s infrastructure challenges. Mr Rupert has a net worth of $8.2bn, according to the Bloomberg billionaires index, and Mr Nhleko is chairman of cell phone company MTN Group.
The Pembani Remgro Infrastructure Fund, CEO Herc van Wyk said on Monday that the fund had raised $245m and could access a further $100m from the US government’s Overseas Private Investment Corporation. Mr van Wyk further said that the fund planned to raise as much as $500m for developing infrastructure on the continent.
“We see interesting opportunities coming up in the infrastructure space,” van Wyk said. “The opportunity, first and foremost, is power generation.”
African countries, including the two of the biggest economies in Africa, Nigeria and South Africa are affected by power shortages that limit economic growth and disrupt production.
Currently South Africa is faced with power demands but the whole load shedding of electricity could be expected for the next coming two years, the South Africa presidency has said. And it is such problems that the Pembani Remgro Infrastructure Fund are hoping to alleviate from African countries, with development of infrastructure as their main mission.