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PIC to invest billions in Eskom

May 14 2010 15:20

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Johannesburg - South Africa's biggest investment fund, the Public Investment Corporation (PIC), plans to invest as much as R9bn in the expansion of power utility Eskom.

The SABC reported on Friday that the investment was needed to keep pace with economic growth.

The investment by the state's pension fund manager of about one percent of its more than R900bn in assets in Eskom formed part of the R45bn planned expenditure to spur the country's economy, the SABC reported.

PIC chief investment officer Dan Matjila was quoted by the broadcaster as saying that the fund intended to allocate five percent of its holding development projects - up from about one percent currently - to boost direct investment in other state companies.

This included ports and rail operator Transnet and the SA National Roads Agency.

According to Matjila, the PIC's strategy in the next few months would be to move more into unlisted instruments in areas such as energy, water, transport, schools and affordable housing.

Providing assistance to Eskom must happen this year, Matjila added.

- Sapa

 
 
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