( 3 minutes read)
· South Africa based Asset management company – Ninety-One-along with a private equity firm, has launched a R10 billion fund to
promote investments in South Africa
· The fund will consist of a concentrated portfolio of preferred debt and equity instruments with a deployment time horizon
of 18 to 36 months
South Africa based Asset management company – Ninety-One- along with a private equity firm, has launched a R10 billion fund to promote
investments in South Africa. The southern African country has considerably gone down in its ranking for attracting investments due
to a number of factors including pandemic. Amongst the objectives of the partnership of the two entities is the clause to ensure an
attractive return for investors, preserve jobs and to shore up the value of stocks of the companies, which have taken a beating in the
recent days. The group has set a target of 24 months for achieving the set goal to revive the South African economy.
The fund will consist of a concentrated portfolio of preferred debt and equity instruments with a deployment time horizon of 18 to 36 months. The group believes that the initiatives would help South Africa to come out of the once-in-a-generation economic challenge. The
SA Recovery Fund is market driven mainly to mitigate the negative economic impact of the Covid-19 pandemic and at the same time seeking
a commercial return for investments. The Fund also aims at boosting employment since thousands of jobs have been lost even before the
pandemic due to recession that had set in the economy since the financial meltdown in 2009.
As reported by www,trendsnafrica.com earlier, the SARB expects a GDP contraction of 7% in 2020, the record first full-year growth decline since 2009. All rating agencies have substantially reduced their outlook on the South African economy.
