African Infrastructure Investment Managers (AIIM), a subsidiary of Old Mutual Alternative Investments (OMAI), has completed the sale of its 12.67% indirect stake in the Bakwena Platinum Corridor Concession (BPCC) via its African Infrastructure Investment Fund 2 (AIIF2) yesterday (5 Nov)
The transaction transfers the interest to Gaia Fund Managers, a specialist asset manager facilitating institutional and pension fund investment in Africa’s emerging infrastructure asset class.
“This exit represents a critical milestone for AIIM, affirming our ability to deliver long-term value to investors,” said Moritz Thompson, Investment Director at AIIM. “This move reflects AIIM’s proactive approach in aligning its investment strategy with favourable market conditions, ensuring optimal value realisation and supporting continued infrastructure development in South Africa.”
AIIF2 has been invested in BPCC for 14 years, and AIIM’s involvement through other funds extends even longer. The sale is being concluded as part of the AIIF2 realisation process and has been executed following the strong recovery of traffic volumes after the COVID-related shutdown. It is also well-positioned to benefit from renewed GDP growth in South Africa.
AIIF2 Assets Remaining
With the sale finalised, this leaves only two remaining investments in the AIIF2 portfolio: Cenpower and IHS. Cenpower Generation Ltd is a Special Purpose Vehicle created to develop the Kpone Independent Power Plant (KIPP) in the Tema industrial zone near Accra, Ghana. IHS Holding Ltd. is Africa’s largest independent telecommunications infrastructure company by the number of towers managed.
BPCC, responsible for managing a critical 385 km stretch of highway, has been a pivotal asset within AIIM’s infrastructure portfolio since AIIF2’s initial investment in 2010. The corridor, encompassing sections of the N1 and N4 highways, has been instrumental in facilitating economic growth, mainly through enhanced connectivity between Gauteng, Botswana, and Namibia.
However, the stark contrast between this well-maintained infrastructure and the crumbling road networks in parts of the country highlights the urgent need for broader investment in road maintenance across South Africa.
BPCC’s Successful Track Record
BPCC, holder of a 30-year concession with the South African National Roads Agency Limited (SANRAL), has consistently outperformed operational benchmarks since its inception in 2002. The concessionaire’s route management will continue until it is handed over to SANRAL in August 2031.
“The success of BPCC underlines the importance of well-structured public-private partnerships in addressing critical infrastructure deficits,” added Thompson.
The transaction also highlights the growing trend of infrastructure as a compelling asset class for institutional investors, particularly within emerging markets. As infrastructure investment continues to gain momentum across Africa, AIIM’s successful exit from the BPCC signals confidence in such ventures’ long-term attractiveness regarding GDP-linked returns, inflation protection, and predictable yields.
AIIM’s divestment comes amid heightened interest in infrastructure assets across Africa, driven by the continent’s growing need for resilient and sustainable transport networks.
“As Africa’s infrastructure needs continue to expand, we remain focused on identifying and nurturing opportunities that deliver both financial returns and broader socio-economic benefits,” noted Thompson.