17/08/2024
Inspirational DAYTIME STORIES - Mr Tshepo Mahloele
South Africa’s inconspicuous billionaire
As a founding CEO of Harith and one of the originators of the $630 million (R11.38 billion) Pan African Infrastructure Development Fund, Tshepo Mahloele is one of the wealthiest people in South Africa.
The billionaire businessman and philanthropist has worked in private equity for over two decades. Mahloele got his first taste of entrepreneurship as a young boy in a Mamelodi township.
Tshepo Daun Mahloele was born in 1967 in Mamelodi, where he attended primary school, before attending high school in Cape Town.
“I came from a family of entrepreneurs and was attracted to the world of business after watching my father run his informal business in the township of Mamelodi,” he said.
He graduated with a BProc from Rhodes University in 1988, a former four-year undergraduate degree designed for those seeking to practice as attorneys.
After completing his articles, he went to Nelspruit, where he worked in a brewery for a couple of months before joining the head office of the National Sorghum Breweries.
His interest in the investment market was triggered in the early 1990s when he joined Rand Merchant Bank’s (RMB) Management Programme for young graduates.
Once he completed the programme, Mahloele worked for the Commonwealth Development Corporation (CDC), the UK government’s development finance institution, where he gained experience in infrastructure funding.
At 27 years old, after his time at the CDC, his good friend suggested that he try something completely different. His mother thought he was crazy because that “different” business sold furniture.
A furniture business owned by a family moving to Australia was up for sale. It had about 40 employees and facilities in Randburg and generated around R700,000 in monthly revenue.
The business was selling for R10 million, which he financed from Investec in the late 90s. At the time, the interest rate was about 16% to 17%, but it shot up to around 18% to 19% in 2000.
Because the business was fully funded by debt, they ended up with a monthly interest rate of about 25%. The debt eventually became overwhelming, and the business went under.
“Many lessons were learned here, which have served me well in my career, including my stints in entities such as RMB, CDC, DBSA and PIC,” he said.
It was a very tough time, he said. “I went back into the formal employment. Dusted myself, got up and started looking for work again and putting my CV out.”
He eventually found a job at the Development Bank of Southern Africa (DBSA), where he headed the private sector investments unit before moving on to the Public Investment Corporation (PIC) in 2003.
Between 2003 and 2006, he worked as the Head of Corporate Finance of the Isibaya Fund, a sub-fund of the Government Employees Pension Fund (GEPF).
Isibaya was managed by the PIC, the largest investment manager in South Africa, with R2.6 trillion of assets under management.
Mahloele was tasked with implementing the PIC’s BEE strategy and concluded R13 billion worth of transactions during his three years at the fund.
He also implemented a new strategy, which achieved a 45% return for the 2003/4 financial year and a 40% return during the 2004/5 year.
One of Mahloele’s most significant achievements is founding Harith General Partners in 2006, a leading pan-African investment firm focused on infrastructure development across the continent.
The firm manages the Pan-African Infrastructure Development Fund (PAIDF), which invests in critical infrastructure projects such as energy, transportation, and telecommunications.
PIC’s management persuaded Mahloele to establish PAIDF, even though he initially wanted to set up his private investment business in Cape Town.
“It was a risky and unprecedented challenge for a number of reasons,” he said.
“The PAIDF was envisaged as a part of the implementation of the important vision of the African Renaissance of President Mbeki to attract private sector investment for the advancement of African infrastructure and the creation of wealth on the continent.”
“The PAIDF had to be, and had to be seen to be, entirely independent of government control.”
Under Mahloele’s leadership, Harith has become a key player in driving infrastructure development in Africa, helping to bridge the continent’s infrastructure gap and stimulate economic growth.
It has also invested in signature infrastructure assets, including:
• MainOne, a leading digital communication company in West Africa
• Dark Fibre Africa in South Africa
• Henri Konan Bedie Bridge in Cote d’Ivoire
• Lake Turkana Wind Farm in Kenya
• Lanseria International Airport in South Africa
• Kelvin Power Station in South Africa
• Enfidha and Monastir Airports in Tunisia
Today, the company manages $1.2 billion (R21.68 billion) of assets across eight African countries.
Mahloele said in an address to the South African Press Council that when they started Harith, there was nothing. “There was no office, no funds from investors except seed capital of R17 million from the PIC, and an idea.”
“Our success came from hard work and financial ingenuity without any favours from any special interest. Our success was built by quality teams and enduring collaborative partnerships developed across the continent.”
A great deal of his wealth also comes from Capitec Bank, in which he holds an indirect 7.26% stake through Lebashe Investment Holding, which he is the chairman and founder of. This stake is worth approximately R23.54 billion.
In 2023, Mahloele’s stake in Capitec Bank increased by R1.24 billion, further solidifying his status among South Africa’s elite businessmen and positioning him as one of the most affluent investors on the Johannesburg Stock Exchange.
Besides his business ventures, Mahloele has also been involved in philanthropic pursuits.
He is deeply dedicated to progressing Africa’s overall development, ending poverty on the continent, and holding its leaders in all fields accountable to their commitments.
“Today, when I sit on my stoep, and my kids ask about the future in this ‘noisy environment’, I always tell them, just do your bit,” he said.
“Hopefully, there will be more investors who feel that responsibility and do not behave like victims, and if enough of us do that, then tomorrow will definitely be better.”
In September 2020, he transitioned to the role of Group Executive Director to focus on the group’s growth initiatives across Africa.
He has continued to further his education, completing various courses in corporate finance, including the Harvard Advanced Management Programme in 2010.
Over the years, he has received numerous awards for his business acumen, including three recognition awards from the Association of Black Securities and Investment Professionals, including the CEO of the Decade award in 2014.
Source: Daily Investor
Black Money Moves ゚viral ゚
