20 September 2018
South Africa’s leading empowerment investment holding company African Rainbow Capital Investments today announced that it has subscribed for a 25% interest for an undisclosed sum in Moloto Capital Investments, a fully black-owned and women-controlled investment company driving empowerment in the industrial and manufacturing sectors in the country.
The transaction is in line with ARC Investments’ stated strategy to develop partnerships with enterprises that can expand its footprint in non-financial services businesses. With this transaction ARC, as an empowerment investment holding company, is buying into a 100% black- and women-owned business and aiming to achieve maximum recognition for its black ownership credentials.
Moloto Capital Investments seeks to acquire controlling stakes in growth companies with defensible competitive advantages in fast-moving consumer goods (FMCG), manufacturing, agribusiness as well as corporate and industrial services. ARC currently has limited to no representation in these sectors and will therefore be ideally positioned to benefit directly from Moloto Capital Investments’ drive in these sectors.
Dr Johan van Zyl, co-CEO of ARC, comments: “Moloto Capital Investments is an ideal partner offering ARC Investments a scalable platform to access attractive medium-sized opportunities in specific sectors. Theirs is a particularly compelling value proposition to their prospective partners and they have achieved significant momentum as a black industrialist investor over a short period of time. Moloto Capital Investments is an active investor and acts as a catalyst to unlock economic value as well as transform key industries. The ARC Investment Committee was impressed with its leadership’s depth of experience and track record and look forward to growing this platform alongside the Moloto team in our complementary partnership”
Moloto Capital Investments selectively invests in high-potential companies with strong management teams where there is significant opportunity for job creation, empowerment and localisation, foreign exchange generation, and innovation. It targets medium-sized companies as its core focus for making investments, while ARC Fund continues to acquire significant minority stakes in large cap companies.
Moloto Capital Investments was co-founded by Merafe Moloto and Navaid Burney, who jointly share 48 years of experience in financial services and having worked together for seven years.
Says Moloto: “We are delighted to have an anchor investor of the calibre of ARC. ARC and Moloto Capital Investments are well aligned, and we look forward to a long-term partnership.
“Current government policy in terms of the National Development Plan and the Black Industrialist Programme, and the broader backdrop of broad-based black economic empowerment legislation and sector-specific charters have created a significant opportunity to drive investment. More importantly, it is the type of investment that delivers a market-related commercial return while positively impacting key fault lines in our economy, such as tackling high unemployment rates and making more black women active participants in the economy,” she said.
This is aligned with Government’s Black Industrialist Policy, which seeks to achieve increased economic growth by promoting industrialisation and opportunities in the manufacturing sector, thereby creating opportunities for more black people to participate in the economy.
About ARC Investments
ARC Investments is listed on the JSE and incorporated in Mauritius. It is an investment holding company offering solid broad based black economic empowerment credentials to its portfolio companies. ARC Investments is focused on acquiring strategic shareholdings in companies within the financial services sector (insurance, asset management, banking and specialist financial services) and specific subsectors in the non-financial services sectors (telecommunications, property, agriculture, business process outsourcing, mining, energy and construction). The total value of its portfolio is currently more than R9 billion.
About Moloto Capital Investments
Moloto Capital Investments is a black-owned and women-led investment holding company focusing on the industrial and manufacturing sectors in South Africa. It boasts a strong and experienced leadership team and seeks to couple this with the opportunities that legislative and policy changes in terms of the Black Industrialist Policy bring.