More than R60-million investment set aside for quality education
Johannesburg, Monday, 18 March 2013 —The Government Employees Pension
Fund (GEPF), its asset manager the Public Investment Corporation (PIC) and Old
Mutual Investment Group SA (OMIGSA), announced today that they have signed an
agreement to finance BASA Educational Institute Trust schools. The agreement will
see the renovation and expansion of Soweto-based BASA Protea Glen Primary School
and the development and operation of a new high school, to be called the BASA
Protea Glen High School, at a collective cost of R60-million. Collectively these
schools aim to educate 2 400 learners a year.
The financing will be done through the R1.2-billion Schools and Education
Investment Impact Fund of South Africa, to which GEPF has contributed R1-billion
and Old Mutual R200-million. The Schools Fund has already allocated more than
R450-million for education projects throughout South Africa.
BASA is a non-profit-organisation founded in 1992 with the objective of establishing
and running low-fee independent primary and secondary schools. Low-fee schooling
helps to address the shortage of schools in previously disadvantaged communities.
With a total of 160 educators, BASA runs five independent schools in Soweto, the
Johannesburg inner city and Diepsloot and caters for 5 000 learners a year (3 500 in
primary and 1,500 in high school). The schools are registered with the Gauteng
Department of Education and follow the government curriculum from grades R to
BASA, which is 100 per cent black-owned, managed and operated, has grown to be a
leader in providing sustainable low-cost, quality independent schooling. Their
flagship school, the BASA Tutorial Institute (BTI) near Park station in central
Johannesburg, attained a 100 per cent matric pass rate in 2012. BASA matriculants
have consistently enrolled in challenging faculties, such as actuarial science,
commerce and engineering at universities around the country.
GEPF Principal Officer John Oliphant said the Schools Fund perfectly reflected the
Fund's focus on developmental investments. "One of the four pillars of GEPF’s
developmental investment policy is investing in social infrastructure such as
affordable housing, healthcare and, of course, education. This partnership will
provide a major boost to affordable independent schooling.”
PIC Chief Investment Officer Dr Daniel Matjila echoed these sentiments. "A key focus
of our investments for the GEPF is to support initiatives that have positive and longterm economic and social outcomes for South Africa, amongst others. Education
remains the most important tool in our quest to achieve both social and economic
BASA Executive Director Luigi Sekoakoa said that the innovative financing
partnership provides BASA with an opportunity to expand the provision of quality
education. "We are excited about the opportunities this partnership brings, both in
reaching more students and in enhancing BASA’s mission of providing a focused and
well-rounded academic education to prepare leaners to succeed during and after
All stakeholders are solidly committed to ensuring the success of the Schools Fund.
CEO of Old Mutual South Africa, Marshall Rapiya, said: “The Schools Fund provides
our investors with a commercially acceptable return, while making a meaningful
contribution to education in our country".
“What is most pleasing about this investment is that it will directly impact the lives
of the people of Soweto, including our own members, in a very tangible way as
quality education is a very potent weapon against generational poverty,” said
Note to editors:
Government Employees Pension Fund (GEPF)
The Government Employees Pension Fund (GEPF) is Africa’s largest pension fund,
with 1 276 361 active members and 360 799 pensioners and beneficiaries. It has
more than R1 050-trillion in assets under management (as of 31 March 2012) and is
the single largest investor in Johannesburg Stock Exchange (JSE)-listed companies. It
has significant holdings in government bonds and invests in unlisted equity and
property. The GEPF's core business, which is governed by the Government
Employees Pension (GEP) Law (1996), is to manage and administer pensions and
other benefits for government employees in South Africa.
The Fund has a strong focus on developmental investment in the form of projects
with a societal, environmental and governance impact. It also promotes black
business ownership and participation. During 2011/12, R1.2-billion was invested in
economic infrastructure, predominantly in the logistics network sector. The Isibaya
portfolio at 31 March 2012 increased by 108 per cent to R12-billion representing 1.15
per cent of the total GEPF assets under management. Isibaya made commitments in
2012 to developmental projects amounting to R7.2-billion. Social infrastructure and
renewable energy projects are the key beneficiaries of this commitment.
Public Investment Corporation (PIC)
The Public Investment Corporation (PIC) is the GEPF's main investment manager. It
manages the equity, bonds, money market and property portfolios. Other investment
managers manage a portion of the equities portfolio and some of the other asset
classes, most of which are monitored by the PIC on behalf of the Fund. An
investment mandate governs our relationship with the PIC and the other investment
managers. PIC was established by an Act of Parliament, and as the custodians of
substantial assets generated by the labour of generations of South Africa’s public
sector employees, it has a responsibility to conduct its affairs, not just effectively, but
also with integrity, transparency and in an exemplary fashion.
Schools Fund
The primary focus of the Schools Fund is on independent low-fee paying schools. The
Fund’s objective is to finance infrastructure and education-related requirements so
as to achieve quality education outcomes and a commercially acceptable return. The
Fund also invests in education areas such as early childhood development,
skills/vocational training and education materials/services. The Fund is managed by
OMIGSA Alternative Investments.
The Fund’s target market is households that earn less than R200 000 a year. The Fund
partners with school/education operators who have a good track record in the
provision of quality education to our target market. The investment takes the form of
debt and equity finance. The Fund prefers large-scale investment as it aims to impact
as many learners as possible. Investments can focus solely on infrastructure (e.g.
buying and renovating pre-primary, primary and/or high school buildings) or can be a
mix of projects that includes education-related facilities in the vocational skills space.
The investment takes place over a long period (10 to 15 years). The Fund can invest
anywhere in South Africa.
The fund manager OMIGSA Alternative Investments
A dynamic and an innovative business within the Old Mutual Investment Group SA
(OMIGSA), OMIGSA Alternative Investments is the largest private alternative
investment manager in South Africa. With assets under management in excess of
R38-billion (30 September 2012), they manage investments in private equity,
infrastructure, mezzanine debt and in a range of development impact funds.
As winners of the Principal Officers Association’s 2012 Imbasa Yegolide Socially
Responsible Investor of the Year Award, the Alternative Investments team is widely
acknowledged for its contribution to the improvement of South Africa through the
provision of affordable housing and access to quality education.
Issued by HWB Communications on behalf of: GEPF
Press Contact:
Katie Horne | Tel: 021 421 0430 | Cell: 084 311 0197
Don Paul
| Tel: 021 421 0430 | Cell: 083 325 1052
Email: [email protected]