South African fund to invest in Mozambican real estate project

23 February 2010

Maputo, Mozambique, 23 Feb – A large-scale property project is being planned for Matola municipality on the outskirts of the Mozambican capital Maputo, in which a South African fund will invest US$200 million.

A manager of the Cidadela de Matola project, Lucio Sumbana, said the investment would be made by the Public Investment Corporation, a South African investment fund specializing exclusively in the public sector. Its clients include the government’s pension fund, as well as an insurance and unemployment fund and a compensation fund, all from South Africa.

The project envisages endowing the city of Matola with a 46,000 square metre shopping centre containing stores, eateries, hairdressers and other services, a health centre and spa, hotel, conference centre, offices, auto showrooms and associated services, autonomous restaurants, provincial and municipal government buildings, a cultural centre and museum.

The development will also count the participation of South Africa’s McCormick Property Development company, which aims to be the sector leader in Africa. The Mozambican counterpart is headed by SIF, a consortium of investment companies operating in the real estate and infrastructure areas.