A Northstar for Sanlam Alternative Investments’ Infrastructure Fund
South Africa, 08 April 2025: An expanded telecoms tower network will change South Africa’s – and South Africans’ – stories. More connectivity means it’s easier for jobseekers to look for employment, for gogos to connect with grandkids, for little ones to learn online, for entrepreneurs to connect to clients.
Connectivity has become a basic human right and necessity, which is why Sanlam Investments is pleased to announce the inclusion of Northstar Towers (Pty) Ltd in its Sustainable Infrastructure Fund portfolio. This aligns with the fund’s mandate to drive economic growth, market development and job creation in South Africa.
Northstar Towers’ extensive network of telecommunications infrastructure, particularly in rural and underserved regions, plays a vital role in advancing national connectivity goals. This investment underscores Sanlam Investments’ overall commitment to projects that fuel digital inclusion, social development and sustainable economic opportunities.
Sanlam Alternative Investments Sustainable Infrastructure fund mandate
The Sanlam Sustainable Infrastructure Fund, which launched with initial commitments of R500 million, has its primary focus on infrastructure projects across the nation. It prioritises sectors that drive measurable social and economic impact, from telecommunications and energy to essential economic infrastructure. By fostering collaboration with impactful organisations like Northstar, the fund aligns with South Africa’s economic recovery strategies, particularly in expanding digital and financial inclusion.
Ockert Doyer, Head of Credit at Sanlam Investments, says, “The inclusion of Northstar Towers is a strong testament to our commitment to impact-driven infrastructure projects that foster socio-economic upliftment. Its work in extending telecommunications to rural communities speaks directly to our fund’s mandate of supporting local projects that enable long-term growth and provide essential services. We look forward to partnering to expand its tower network.”
Expanding connectivity to underserved areas
Northstar Towers’ infrastructure network is designed to bridge the digital divide, with over 85% of its towers situated in rural regions, supporting large mobile network operators (MNOs) to reach more people. By providing connectivity in these areas, Northstar Towers enhances digital access, enabling rural communities to participate in the digital economy. This access opens new pathways for education, employment and financial inclusion, directly supporting the UN Sustainable Development Goals (SDGs) focused on reducing poverty and promoting inclusive growth.
Doyer adds: “Northstar Towers’ expansion into rural areas highlights the transformative power of connectivity, especially in communities where access has traditionally been limited. Our investment in Northstar Towers not only supports infrastructure growth but also empowers individuals with the tools they need to advance economically and socially.”
Mitigating risks to protect portfolio value
As part of Sanlam Alternative Investments Sustainable Infrastructure mandate, Northstar Towers adheres to robust risk management principles that ensure stability and resilience throughout its operations. Key measures include:
Regulatory and Environmental Compliance
Northstar’s seasoned team brings two decades of expertise in managing South Africa's regulatory environment. By maintaining strict legal and environmental compliance, Northstar reinforces its operational stability, aligning with Sanlam Investments’ focus on sustainability and risk management.
Financial Stability and Market Risk Mitigation
Northstar secures projects through loans backed by long-term leases with MNOs. This revenue model is complemented by a conservative debt structure expected to be repaid within six years.
Operational and Key Man Risk
By outsourcing construction and maintenance, Northstar mitigates dependency on specific individuals, promoting operational continuity and scalability that align with the Fund’s goals of long-term growth.
Supply Chain Continuity
Northstar’s reliance on established vendors ensures a stable supply chain for tower construction, while equity holders assume the construction risk, further securing the Fund’s investment.
Enhancing community impact and economic opportunity
Northstar Towers’ expansion in rural South Africa provides critical digital access, enhancing educational opportunities, employment prospects, and financial inclusion. For instance, the tower in Sweet Waters, KwaZulu-Natal, offers reliable connectivity that allows students to access online learning resources, bridging the educational divide.
A commitment to ESG principles
Aligned with Sanlam Investments’ strong focus on environmental, social, and governance (ESG) criteria, Northstar Towers prioritises sustainability and responsible operations. By collaborating with major MNOs, including MTN and Vodacom, Northstar extends its Corporate Social Investment (CSI) reach, directly benefitting local communities near tower sites. This commitment to ESG not only supports Sanlam Investments' objectives but also drives broader benefits for the people and places impacted by these infrastructure projects.
The inclusion of Northstar Towers within the Sanlam Investments Infrastructure Fund portfolio represents a significant step towards meeting South Africa’s connectivity needs, supporting rural development, and ensuring sustainable growth. Doyer says, “Through this strategic partnership, Sanlam Investments continues to demonstrate our commitment to impactful, sustainable investments that contribute to a more connected and inclusive South Africa. This aligns with our north star to invest in our shared future.”
Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS and disclaimers can be viewed on www.sanlaminvestments.com