South African finance giant creates R5-billion fund to invest in local infrastructure

Financial services company Alexforbes has created a R5-billion fund to invest in local infrastructure projects in the electricity, water, housing, transport, and ICT sectors, the Sunday Times reports.

Gyongyi King, the chief investment officer at Alexforbes Investments, says the company aims to raise R5 billion to generate returns and contribute to economic growth.

“We want to see growth. Without good ports, stable electricity, stable water, housing, and roads, we cannot grow,” she said.

Through creating the infrastructure investor funder fund, King says Alexforbes is creating a solution for investors to access an asset class they wouldn’t necessarily access on their own.

“By creating a fund structure, we can solve that problem and get capital to where it is needed most, which is infrastructure investment,” she said.

She added that the group will invest the capital in assets beyond just renewables, including water, transport, and ICT.

King explained that while renewables have been a great investment, Alexforbes is also considering aspects like water infrastructure, ports, and IT infrastructure.

Alexforbes’ infrastructure investment initiative comes as the South African government aims to invest over R1 trillion in critical infrastructure in three years to lift economic growth in key sectors.

These include transport and logistics. President Cyril Ramaphosa alluded to the imminent investment during his 2025 State of the Nation Address.

“Infrastructure spending will become the fastest-growing line item in our budget. Public infrastructure spending over the next three years will exceed the R1 trillion mark,” he said.

Finance minister Enoch Godongwana alluded to the same during the third and final rendition of his 2025 Budget Speech.

He explained that the government planned to fund industrial policy projects through long-term domestic savings, such as pension funds.

The minister said work was underway to issue the first infrastructure bond by 2026. While presenting his address, Godongwana highlighted infrastructure as a critical pillar of the country’s growth strategy.

“Quality infrastructure investment expands the productive capacity of the economy and responds to the diverse needs of citizens,” he said.

“Infrastructure is also a rich source of jobs, in construction, engineering, and related industries across a range of skill levels.”

Godongwana emphasised that the government is committed to shifting spending from consumption to investment, with capital payments being the fastest-growing category of expenditure.

“Public infrastructure spending will exceed R1 trillion over the next three years, with key allocations directed towards transport and logistics, energy, and water and sanitation,” he said.