Portfolio company
Trans African Concessions |  |
|---|
Company website | www.tracn4.co.za |
Business sector | Infrastructure |
Country of operation | South Africa |
Market | Africa |
Investment status | Realised portfolio |
Investment type | Project finance |
Date of original investment | 1998 |
Date of exit | 2006 |
Office | Johannesburg, South Africa |
The N4 Maputo Corridor Toll Road links the capital cities of South Africa and Mozambique. The 500km toll road runs from the outskirts of Pretoria in South Africa to Maputo in Mozambique.
This was the first time in southern Africa that a road infrastructure concession had been awarded to the private sector. The project consisted of rehabilitating and expanding the existing N4 road in South Africa and building new road infrastructure in Mozambique. None of the route had been tolled previously, and the plan envisaged the construction of five toll barriers across the N4.
Actis was invited to participate in the funding for the winning consortium, led by Bouygues Group from France. Actis had initially invested to finance the consortium during the development phase in 1997. After financial close, Actis became the largest (and only non South-African/Mozambican) investor, acquiring a 15.5% stake. In 2003, after two years of operation, Actis increased its ownership to 26.9% when, with a consortium, it purchased part of the stake owned by Bouygues.
Potential upside from traffic growth derived from the economic development of both South Africa and Mozambique, the potential increase in car ownership in South Africa and economic growth along the corridor and from the port of Maputo. In 2004, the road concession was extended from Witbank towards the suburbs of Pretoria. This extension increased revenue by adding another toll plaza on the main road. TRAC invested in various community programmes for the rural population along the route, including employment, education and AIDS awareness
Actis sold its strategic minority interest in 2006 to a fellow shareholder.