By
Vishal Bhidu
The Sixth edition of the Pension funds & Alternative Investments (PIAFRICA 2023) conference took place at Le Meridien Hotel, Pointe aux Piments on March 15 in the presence of the Minister of Financial Services and Good Governance Hon Mahen Kumar Seeruttun. The event saw a huge turnout to the tune of 200 plus delegates, an excess of 30 virtual attendees spanning across 15 countries and over 40 speakers in both physical and virtual modes. The conference, which is being held over two days from March 15 to 16, will see various discussions based on the theme, “Responsible Investing & Diversification Strategies in Low Growth Environment” where industry leaders and experts come together under one roof to discuss pension opportunities.
In his opening remarks, the Hon Mahen Kumar Seeruttun urged on the need to focus on what he calls this ‘hyper-dynamic industry’ where the Total Assets Under Management of Pension Funds is expected to hit USD38.2 trillion as per Statista while Total Assets Under Management of Alternative Investments forecast will be at USD 21 trillion and attributed to a global environment of low-interest rates. “The conference theme, Responsible Investing & Diversification Strategies in a Low Growth Environment, couldn’t be more timely where the low yield environment has tremendously shaped investment decisions during the past decade coupled with galloping inflation during the recent years while yields remained at a low level, adding to the fact that the Ukraine war has compounded the problem.”
He added that the pandemic has spurred the Great Acceleration of Digitisations where against this backdrop, the medium to longer outlook poses prospects and challenges accelerating the shift to more productive, sustainable, and equitable growth through investment in new green and digital technologies.
The Minister added that by 2030, Africa will be home to 1.7 billion people with business and individual spending forecast to reach USD6.7 trillion while 43 percent of the people would reach the middle and upper classes leading to a higher demand for goods and services. He noted that “Africa is set to become the next Factory of the World. Africa will not wait and can no longer be in ignored” while emphasising the important role that Mauritius can play to foster cross border investment into the continent.
“The Mauritius International Financial Centre remains key to driving quality foreign direct investment into Africa which accounts for 9 percent of overall foreign investment. This conference remains highly relevant and timely for us with our mature 30-year-old IFC as a leading asset management hub for institutional investors and fund managers,” he added.
Minster Seeruttun enumerated several measures spearheaded by the government such as activities pertaining to regional headquarters, fund and asset management together with the introduction of special tax regimes with the latest one being the Variable Capital Companies Act that introduces an attractive structure for various types of funds. He announced that his Ministry is currently working on an ESG Framework for Africa to reassure investors and enhance trust in our jurisdiction.
Earlier, the Managing Director at AME Trade, Mahad Ahmed, underscored the new world economy characterised by rising interest rates globally, a rise in inflation both domestically and imported, coupled with a geopolitical backdrop where an ongoing Russia-Ukraine war is ushering in an unprecedented era of risks and uncertainty. He remarked: “Africa remains resilient with the average GDP poised to grow at 4 percent over the next two years and demand surge for commodities on the international scale likely to continue. The conference aims to leverage a platform for knowledge building and an exchange of ideas to promote the role of pension funds to help advance the economic development of the continent, by showcasing a credible alternative investment with proven sustainable returns while providing a platform for networking and business development.”
In a video message, Africa Finance Corporation’s (AFC) Executive Director Mr Sanjeev Gupta, who was unable to make it to the conference in person, underlined the various challenges faced by Africa such as liquidity, capital, general inflation and the food environment while emphasising the role of the conference in discussing how to manage diversity in investments and making them work during times of distress. He stressed: “The time has come for African savings to work more aggressively for Africa and institutions like us need to collaborate to make that happen.” He stressed the need to ensure that investments develop and de-risk properly for Africa with pension funds undertaking investment forays into the continent.
Really good!