South African private equity firm Harith General Partners, along with a consortium of investors, has completed the acquisition of the Pan African Infrastructure Development Fund (PAIDF) for R6.5 billion.

This fund holds stakes in vital infrastructure assets such as Lanseria International Airport and Kelvin Power Station, marking a significant moment in African private equity and infrastructure investment.

The transaction offers an exit opportunity for investors in the first PAIDF, including South Africa's Government Employees Pension Fund (GEPF), Absa Bank, Old Mutual, and others.

Harith partnered with Mergence Investment Managers and Zungu Investments to secure the acquisition, with PSG Capital serving as the financial adviser for the deal.

The PAIDF, which launched in 2007, owns substantial stakes in key infrastructure assets across Africa.

These include a 37.5% share in Lanseria International Airport, South Africa's only private airport, a 37.92% stake in Anergi, the energy firm operating Johannesburg's Kelvin Power Station, and a 15.3% holding in Remgro CIVH, which manages significant fiber infrastructure assets.

This acquisition expands Harith's footprint to ten African countries, solidifying its role as a leader in infrastructure investment on the continent.

Africa's infrastructure needs remain substantial, with the African Development Bank estimating a requirement of up to $170 billion annually to improve access to electricity, upgrade roads, and expand telecommunications.

Against this backdrop, Harith CEO Sipho Makhubela highlighted the transaction's importance, noting that it comes during a period of sluggish private equity fundraising and exit activity.

He also emphasized the deal's potential to position Harith as a significant player in Africa's just energy transition, given the portfolio's focus on energy, transportation, and digital infrastructure.