PIDG’s focus on the manufacturing sector will be by providing patient capital and credit products to manufacturing businesses which support infrastructure and/or where the transaction will drive capital market development. PIDG may invest in manufacturing activities associated with our core focus of infrastructure through our Credit Solutions businesses. These activities must complement the other traditional sub-sectors that are normally associated with infrastructure and which demonstrate a clear and direct infrastructure element.
These activities will be clearly additional/highly developmental projects seen through the lens of “no one else can do it”, and where HSES conditions are compliant with our requirements. Any manufacturing-related project that does not have an associated capital market development, a clear and direct infrastructure element, or associated value chain that stays in country, will not be undertaken.
Equally, economic zones are areas which can be transformational and may include associated infrastructure including captive power, access roads, etc. as well as manufacturing plants (allowing the country to keep the value chain in country for the export of finished goods).
Economic zones can have different objectives – for example manufacturing of goods for export, urban revitalisation, industrial development, integrated development (freeport, for example), or trade support. Their development impact can come in a range of different ways, depending on their area of focus: increased value added in-country (potentially enhancing the incomes of primary producers); reduced migration within a country; reduced cost and increased competitiveness for businesses, leading to job creation; improved technology transfer between companies in a knowledge hub, leading to improved skills; or increased export earnings.
As outlined within its Investment Policy, PIDG will actively explore opportunities to invest in economic zones, which complement the other traditional sub-sectors that are normally associated with infrastructure. In addition, we are investigating whether infrastructure associated with economic zones demonstrates both replicability and scale and is therefore a programmatic theme.