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Batseta Winter Conference 2024: Cultivating sustainability and inclusion now

Batseta Winter Conference 2024_website
| Inside Institutional, Sustainable Investing

Experts from Sanlam Investments joined a panel discussion at the Batseta Winter Conference, held from 29-31 July 2024. The conference theme, “Cultivating Sustainability and Inclusion Now,” provided a platform to explore how retirement funds can address just transition imperatives, climate goals and social development while aligning with ESG principles, impact investing and infrastructure investment.

Our panel of experts discussed “ESG Developments: Focusing on Infrastructure,” moderated by Teboho Makhabane, Head of ESG and Impact at Sanlam Investments. Here is a summary of the key insights shared by the panellists:

Manka Sebastian, Portfolio Manager at Sanlam Investments

Manka manages the Property Impact Fund, which aims to empower South Africa’s “missing middle” by investing in key social infrastructure such as affordable housing, education and healthcare. This fund seeks to amplify access to property provided by market players who are already delivering these essential services. Key highlights from her discussion included:

  1. Community ownership: The Property Impact Fund supports projects that enhance local involvement, such as retail shopping malls in township and rural areas. Currently, community members have ownership in a rural retail shopping mall that we have funded, fostering local pride and ensuring long-term sustainability.
  2. Data-driven impact: The fund leverages data from sources like the Centre for Affordable Housing Finance in Africa and the South African Revenue Service to target underserved areas, ensuring that investments meet actual needs and improve access to essential services.
  3. Community-focused growth: By investing in rural areas and townships, the fund supports local economic growth. During Covid-19, we saw the resilience of local businesses in these areas as they created their own ecosystems, benefiting local entrepreneurs and retaining economic benefits within their communities.

Pawan Singh, Portfolio Manager at Sanlam Investments

Pawan manages the Sustainable Infrastructure Fund, focusing on sectors aligned with South Africa’s National Infrastructure Plan, including energy, water, ICT and transportation. Key points from his discussion included:

  1. Energy solutions: The fund addresses the energy crisis by investing in affordable, decentralised renewable energy solutions, such as solar energy projects that provide clean, reliable power to SMEs, and commercial and industrial users. These initiatives aim to reduce reliance on the national grid, significantly lowering energy costs and mitigating carbon emissions.
  2. Water and agriculture: The 30-year water inflation rate has outpaced energy inflation, exacerbating the challenges in our water-scarce economy. To address these challenges, the fund invests in clean water and sanitation projects. For example, a project in the Eastern Cape treats and recycles wastewater, linking these improvements to enhanced agricultural productivity and, consequently, economic stability.
  3. Digital inclusion: To address the digital divide, the fund plans to invest in prepaid fibre for townships and the rollout of cellphone towers in rural areas. This investment aims to enhance connectivity and provide affordable internet access for education, communication and SMEs.
  4. Transportation: The fund invests in toll roads and is exploring investments in electric vehicles to support retailers in transitioning from internal combustion engines (ICE) to affordable electric vehicles.

Conclusion

The Batseta Winter Conference 2024 highlighted the importance of integrating sustainability and inclusion into investment strategies. By addressing critical infrastructure needs, Sanlam Investments and its partners are leading the way in making a tangible difference. The insights shared reflect a strong commitment to not only meeting current challenges but also fostering long-term societal benefits through strategic and impactful investments.

 

Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS and disclaimers can be viewed on www.sanlaminvestments.com

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