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Diversified financial services group Alexforbes has established a R5 billion fund to invest in critical South African infrastructure projects, aiming to generate strong returns while supporting economic growth, reports the Sunday Times.
The initiative comes as the government plans to spend over R1 trillion on infrastructure over the next three years to revitalize key sectors.
Gyongyi King, Chief Investment Officer at Alexforbes Investments, told the Sunday Times that the fund will target renewable energy, affordable housing, water, transport, and ICT infrastructure. “Without good ports, stable electricity, water, housing, and roads, we cannot grow,” she said. The company has already committed R1 billion to the fund, with R750 million allocated to renewable energy and housing projects.
The fund leverages Regulation 28 of the Pension Funds Act, which permits pension funds to diversify into infrastructure assets. King noted that retirement savings and infrastructure investments align well due to their long-term nature. “Members want to see their investments at play, and infrastructure projects tend to affect many communities,” she said.
“By creating the infrastructure investor fund, we are creating a solution for investors to access an asset class they might not tackle alone. This gets capital to where it’s needed most,” King added. The fund structure simplifies participation in unlisted infrastructure projects, which are typically complex compared to traditional equity investments.
Alexforbes reported strong financial results for the year ending March 2025, with operating income up 13% to R4.3 billion and active members growing 4% to 1.42 million. However, the introduction of South Africa’s two-pot retirement system led to R5.5 billion in withdrawals as members accessed emergency savings.
CEO Dawie de Villiers said the two-pot system has increased member engagement with retirement planning. “Members now care about withdrawals, savings growth, and future security—something we didn’t see before,” he noted. The group declared a total dividend of 55 cents per share, plus a 10-cent special dividend.