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, South Africa, Tanzania and Zambia.
PME intends 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 Richard Bouma, Chief Executive of PMEIM.
PME Infrastructure Advisors Limited is the investment advisor to PMEIM and, together with PMEIM, responsible for sourcing investment opportunities for PME.
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's management team believes that investment in infrastructure projects will present significant opportunities for capital growth and revenue generation both for the fund and for the economies of those countries where such investments are made. 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.