•There have been proposed changes to Regulation 28 to include a specific allocation and disclosure for infrastructure investments which cuts across other asset classes. Investments of up to 40% of fund assets will be permitted into infrastructure.

•In addition, there has been significant development in wheeling agreements where Eskom’s distribution capabilities are leveraged through offtake generation agreements with private sector entities. There has been one licence granted, and more are in the pipeline.

•With the above in mind, there is increased interest in infrastructure as an important part of SA’s economic growth. The Asset Owners Forum of South Africa has been launched, which is an initiative of retirement funds to mobilise their investments into infrastructure. It is especially supportive of smaller funds that do not have sufficient capacity of their own. It is chaired by Ndabe Mkhize and the GEPF is a signatory to the forum.

The Infrastructure Fund of the DBSA is one of the tools earmarked by the Asset Owners Forum to deploy funding, and possibly structure investments where government underwrites the first tranche of investments (thereby reducing the risk). This panel discussion will have the key role players (asset allocators, and asset deployers) in the room to discuss this initiative.

Key Outcomes:

– How are infrastructure investments structured?

– How can institutional investors (incl. retirement funds) get involved pragmatically and prudently?

– What are the possible and probable roles of government in this class of investment?

–  What are the latest Reg 28 rules relating to this class?