The fund in brief
"New macroeconomic forces are poised to have a profound effect (in sub-Saharan Africa) - despite the global economic downturn.
In part because of low labor costs and gains in operational efficiency, the average annual return on capital of the companies studied was 65 percent to 70 percent higher than that of comparable firms in China, India, Indonesia and Vietnam.
The time is ripe for multinationals to rethink sub-Saharan opportunities and simultaneously to help the region achieve its promise by contributing much-needed capital, business skills and global connections." Harvard Business Review
PME's investment objective is to achieve significant total return to investors through investing in infrastructure projects and related opportunities across a range of countries in sub-Saharan Africa. The main investment focus lies within existing or greenfield projects in Angola, Botswana, the Democratic Republic of Congo, Ethiopia, Ghana, Mozambique, Nigeria, Rwanda, South Africa, Tanzania, Uganda and Zambia.
PME's mandate allows it to invest in the transportation, telecommunications, energy, water and sanitation, and infrastructure-related real estate sectors. Where appropriate, it may engage in public-private partnerships.
PME Infrastructure Managers Limited ("PMEIM") is the Investment Manager and is responsible for managing PME. PMEIM is a joint venture between Principle Capital, Unicos Partners LLP (holding company of the Helvetica Group of companies), Dunkeld Trust (associated to Masazane Capital) and the interests of Richard Bouma.
PME floated on the Alternative Investment Market (AIM) on 12 July 2007, raising US$180.45 million (before expenses) through a placing of shares (ticker: PMEA) and warrants (ticker: PMEW).
Rationale
The ability to realise the potential of the African continent's natural resources is dependent on infrastructure. Historical under-investment in Africa's infrastructure base has been a limiting factor in unlocking the continent's very sizeable resource potential. PME estimates that in excess of US$120 billion of investment opportunities in infrastructure will be created in the next ten years as a result of infrastructure demands in Africa.
2008-2009 PME African Infrastructure Opportunities plc. All rights reserved.