Private sector steps up to fund sustainability

In the wake of the COP26 Global Conference on Climate Change, President Cyril Ramaphosa secured a commitment of 130 billion Rand aimed at transitioning South Africa from coal to cleaner energy sources. Following this monumental pledge, institutional investors have begun stepping up with commitments of their own in a bid to make a tangible impact. One such investor leading the charge is Ockert Doyer, the Lead Portfolio Manager of Sanlam Investments' Sustainable Infrastructure Fund, who recently appeared on CNBC Africa to shed light on these initiatives. Doyer elaborated on the commitment made by investors, highlighting their objective to generate a positive impact through economic growth by allocating capital to strategic infrastructure investments. With a focus on sectors such as energy, transport, and ICT, the aim is to stimulate economic growth and create job opportunities within South Africa. This dual-focus approach is integral to balancing profit with social impact, ensuring that investors uphold their fiduciary responsibilities while driving sustainable development. The National Infrastructure Plan 2015, released by the Department of Public Works and Infrastructure, outlines the extensive funding requirements for infrastructure projects in South Africa over the next few decades. With a projected investment gap of over two trillion Rand, the private sector, including institutional investors like Sanlam Investments, plays a crucial role in bridging this divide. Sanlam Investments has set an initial target of raising five billion Rand to kickstart their sustainable infrastructure initiatives, envisioning a transformative impact on the country's economic landscape. Clients and asset owners are increasingly aligning themselves with net zero goals and sustainable infrastructure mandates, reflecting a broader shift towards responsible investing. As environmental considerations gain prominence alongside social impact metrics, investors are evaluating the dual benefits of financial returns and positive social outcomes. Job creation, especially in underserved communities, is a key focus area for these sustainable investment endeavors, with a vision to enhance service delivery and foster economic efficiency. Doyer underscored the pivotal role of efficient infrastructure in driving economic activities, emphasizing the interconnectedness between quality infrastructure and overall economic performance. By enhancing transport networks, energy systems, and digital infrastructure, opportunities for economic advancement and job creation are bolstered, positioning South Africa for sustainable growth in the years ahead. The commitment to sustainable infrastructure development heralds a promising future for South Africa, with private sector investments poised to catalyze economic growth and job creation. As investors embrace a dual mandate of financial returns and social impact, the path towards a greener, more resilient economy becomes increasingly tangible. With leaders like Ockert Doyer steering the course towards sustainable development, the prospects for a thriving, sustainable future for all South Africans are indeed bright.