Infrastructure investing

Infrastructure investing in South Africa

Access diversified infrastructure debt designed to deliver stable income and support long-term economic growth.

South Africa should be spending at least 30% of GDP¹ on infrastructure by 2030 to unlock inclusive economic growth, but the country faces a significant infrastructure investment gap.

Years of underinvestment across energy, transport, water and digital infrastructure have created a growing need for private capital.

This presents a compelling opportunity for investors to access infrastructure debt in South Africa – helping to finance essential assets while targeting resilient, income-focused returns.

¹ Source: National Development Plan 2030 - National Planning Commission (South African Government)

The infrastructure opportunity in South Africa

Why infrastructure debt?

Infrastructure debt plays a critical role in funding essential infrastructure while offering investors access to stable, long-term income streams.

1
Debt provides a large and attractive investment opportunity, typically accounting for 70-90% of the funding required for projects.

2
The equity upside is forgone, but in its place the investment becomes more defensive and provides greater certainty thanks to preferred rights to the underlying assets and cash flows.

3
Debt providers are able to exploit their position in the funding structure to encourage, influence and incentivise borrowers to design and operate their projects in an impactful and sustainable way.

4
The speed at which investment can take place is also fast tracked given the protections afforded to debt holders, standardised terms and the growing opportunity set in both the private and public markets.

Ninety One SA Infrastructure Credit Fund

The Ninety One SA Infrastructure Credit Fund provides access to a diversified portfolio of infrastructure debt investments in South Africa, supporting both public and private sector projects.

Fund overview and pipeline

South Africa’s infrastructure pipeline spans a wide range of sectors, supported by both public and private investment initiatives.

The Fund targets opportunities across:

Renewable energy (including solar, wind and battery storage)
Water and sanitation
Transport (roads, ports and logistics)
Digital infrastructure and telecommunications
Human settlement

The Fund is designed to deliver stable, income-focused returns while supporting the development of essential infrastructure in South Africa.

Private credit investment in infrastructure helps unlock essential services, such as energy, transport, education, healthcare, and digital access while supporting economic growth and resilience.

Investments are held in a diversified pool of infrastructure debt instruments, including loans and bonds. Portfolios typically consist of 30–50 investments across public and private credit markets.

Fund overview and pipeline

South Africa’s infrastructure pipeline spans a wide range of sectors, supported by both public and private investment initiatives.

The Fund targets opportunities across:

Renewable energy (including solar, wind and battery storage)
Water and sanitation
Transport (roads, ports and logistics)
Digital infrastructure and telecommunications
Human settlement

The Fund is designed to deliver stable, income-focused returns while supporting the development of essential infrastructure in South Africa.

Private credit investment in infrastructure helps unlock essential services, such as energy, transport, education, healthcare, and digital access while supporting economic growth and resilience.

Investments are held in a diversified pool of infrastructure debt instruments, including loans and bonds. Portfolios typically consist of 30–50 investments across public and private credit markets.

Fund at a glance

Diversified infrastructure debt exposure across South Africa
30–50 investments across sectors and counterparties
Targeting >BBB credit quality (national scale)
Access to both public and privately originated infrastructure debt opportunities
Investors can access two return profiles depending on their requirements:

Cash-like profile

STeFI + 3.5%

Short-term Fixed Interest Index

Bond-like profile

ALBI + 2.5%

All Bond Index

Liquidity and structure

The Fund is an open-ended (“evergreen”) portfolio, allowing exposure to longer-dated infrastructure assets while maintaining investor liquidity.
The Fund is structured to offer periodic liquidity of 5% of the portfolio’s net asset value on a quarterly basis. This balance reflects a deliberate trade-off: providing investor access to liquidity, while supporting assets whose economic lives extend over decades.

Investment philosophy

Fundamental research

Focused on assessing the sustainability of cashflows and the ability of borrowers to meet debt obligations.

Diversification

Portfolios are constructed to reduce concentration risk across sectors and counterparties.

Risk management

Scenario analysis is used to assess portfolio resilience under different market conditions.

Origination

Direct engagement with banks and borrowers supports access to proprietary infrastructure debt opportunities.

30–50

Investments across public and private credit markets

>BBB

National scale rating, all investments

>20 yrs

Infrastructure and credit investing in South Africa

Public + Private

Debt access across both market segments

Why Ninety One

Our experience in infrastructure and credit investing, supported by a global investment platform, positions us to identify, structure and manage infrastructure debt opportunities across market cycles.

R58bn^*

Invested in infrastructure over 20 years

R7 billion

Rate of deployment per annum

130+

Projects and borrowers supported

R100bn +

Assets under management

50%

of illiquid debt strategies are in infrastructure

^* As at 31.12.2022

Meet the team

Our dedicated infrastructure and credit team combines deep local expertise with global investment insight.

Infrastructure investing in South Africa - FAQs

Frequently answered questions (FAQs)

1. What is infrastructure debt?

Infrastructure debt is a specialised asset class that provides funding for the development, construction and maintenance of essential, long-term projects such as roads, renewable energy and communication networks. These projects, whether publicly or privately owned, typically deliver a fundamental benefit to society and have historically experienced lower default rates than corporate debt.

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For investors, infrastructure debt can offer long-term, stable and predictable cash flows, supported by strong security and collateral.

2. How does the SA Infrastructure Credit Fund work?

The Fund is an open-ended credit strategy, focused on financing essential infrastructure primarily in South Africa. It aims to deliver strong, stable, risk-adjusted returns while supplying disciplined, long-term credit capital to support South Africa’s infrastructure ecosystem.

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Rather than taking ownership of the infrastructure assets, the Fund provides debt instruments (including loans and bonds) to infrastructure projects, operators, and companies investing in either infrastructure development or the expansion of assets across key sectors, such as energy, water, transport, and digital networks.

Investors, therefore, participate as lenders, and returns are primarily earned through interest payments made by borrowers over time under agreed contractual terms.

3. How do investors earn returns?

Investors earn returns primarily through contractual interest payments on the debt investments made by the Fund. Borrowers pay interest according to predefined terms and schedules. This income, after fees and expenses, contributes to the Fund’s returns.

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Returns are not dependent on selling assets or rising market valuations. Instead, they accrue through agreed contractual interest payments over the life of the investment.

4. How liquid is the Fund?

The Fund is structured to offer periodic liquidity of 5% of the portfolio’s net asset value on a quarterly basis. This balance reflects a deliberate trade-off – providing investor access while supporting assets whose economic lives extend over decades. The Fund is therefore best suited to investors with a medium- to long-term investment horizon.

5. What role does infrastructure credit play in a portfolio?

Infrastructure credit is typically income-focused rather than growth-driven, with returns anchored in contractual interest payments rather than asset valuation appreciation.

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Investments are structured as loans with defined maturities, seniority in the capital stack, and contractual protections such as covenants and security packages.

While capital is not devoid of risk, the emphasis on contractual income and repayment discipline makes infrastructure credit less sensitive to short-term market volatility than equity investments.

Within a diversified portfolio, the Fund can serve as an income-oriented allocation, providing investors with exposure to essential real-economy assets through a structured credit approach.

6. What are the key risks?

All credit investments carry risk. In infrastructure credit, risks may include borrower default, construction or operational delays, regulatory or policy changes, or broader macroeconomic pressures.

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Outcomes depend on loan structure, asset quality, borrower creditworthiness and ongoing oversight.

Capital is not guaranteed, and losses are possible. The Fund seeks to manage risk through detailed credit analysis, careful structuring, diversification across sectors and counterparties, and active monitoring throughout the life of each investment.

7. Why is infrastructure credit important in South Africa?

Infrastructure refers to the physical and digital structures and systems that enable the delivery of essential raw materials, products and services to the economy and society. These systems underpin economic growth, job creation, and service delivery by providing access to essential services – such as water and sanitation, energy, transportation, housing, education, and health care.

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South Africa faces significant infrastructure funding needs, but public-sector funding is constrained, and traditional bank funding is insufficient to meet the scale of investment required.

The private sector plays an important role in financing essential infrastructure, helping to close the funding gap. The Ninety One SA Infrastructure Credit Fund, therefore, helps channel private capital into assets that support economic activity and service delivery, fundamental to South Africa’s economic resilience.

View all FAQs

Important information

The information, views and opinions provided are general in nature, for informational purposes only, and should not be construed as advice. No action should be taken without appropriate professional guidance. We do not act as advisors or in a fiduciary capacity. While we strive for accuracy and timeliness, we make no guarantees as to completeness or correctness and are not obliged to update the information. This material does not constitute a full summary of the risks associated with any product, fund, service or strategy. Relevant risk disclosures are available in the applicable documents, which can be requested free of charge. For details on specific funds, please refer to the relevant fact sheets. For mandatory disclosures about this investment, further important information on indices, fund ratings, yields, targeted or projected performance returns, back tested results, model return results, hypothetical performance returns, the investment team, the investment process and specific portfolio names, please click here.

Infrastructure investing in South Africa

Access diversified infrastructure debt designed to deliver stable income and support long-term economic growth.

South Africa should be spending at least 30% of GDP1 on infrastructure by 2030 to unlock inclusive economic growth, but the country faces a significant infrastructure investment gap.

The infrastructure opportunity in South Africa

The dawn of reform: Operation Vulindlela

R500bn+

51%

~22,500MW

5,842

Why infrastructure debt?

Ninety One SA Infrastructure Credit Fund

Fund overview and pipeline

Fund at a glance

Liquidity and structure

Investment philosophy

Fund overview and pipeline

Why Ninety One

R58bn*

R7 billion

130+

R100bn +

50%

Meet the team

Infrastructure investing in South Africa - FAQs

South Africa should be spending at least 30% of GDP¹ on infrastructure by 2030 to unlock inclusive economic growth, but the country faces a significant infrastructure investment gap.

R58bn^*