STANLIB and New GX partner on digital infrastructure investment platform
STANLIB Asset Management, one of the largest investors in South African infrastructure, has joined forces with New GX Investments to create a long-term capital digital infrastructure platform that will invest in fibre, towers and data centre infrastructure.
STANLIB has invested over R2.4 billion (about $156.3 million) in the Pitje-family-controlled company, New GX, to accelerate the roll-out of digital access across the country.
The parties intend to raise a further R7 billion (about $455.7 million) of capital to create a R12 billion (about $781.4 million) digital infrastructure platform. It will take advantage of growth and investment opportunities across multiple digital infrastructure asset classes and geographies, with particular emphasis on improving connectivity in underserved townships in South Africa and selected other African countries.
Infrastructure Investments’ principal at STANLIB, Andy Louw, said, “Our team is excited about the partnership with New GX in creating this investment platform. It will assist in rolling out and upgrading SA’s digital infrastructure, especially in townships, where it will have a tangible and sustainable impact upon many South Africans. Given our track record and the pipeline of opportunities that we have, we are confident that we will raise a further R7 billion of capital from South African and international investors in infrastructure, impact and ESG.”
“This powerful partnership and investment platform prove that ESG infrastructure projects not only reinvigorate the economy and create jobs but also have a multiplier effect upon the greater economy. We are providing real benefits to communities while delivering long-term attractive returns to investors. We are proud to be in a position to raise and diligently deploy capital in areas where it is most needed in SA,” Louw said.
Khudusela Pitje, CEO of New GX, said, “We are already seeing how access to uncapped affordable data improves lives and empowers people within townships. Education and SMMEs are some of the areas that are being positively impacted by our investment. So far, we estimate the market potential is close to three million homes in townships. This is only the beginning, as more people will be positively impacted by the bridging of the digital divide that was previously limited to the cities.
“We are grateful to STANLIB for the investment in our business and for their long-term commitment to our shared vision,” Pitje said. “With our combined experience, expertise and shared values of inclusive growth, I am confident that we will add considerable value to communities, and that together we will ensure our continued sustainable growth.”
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