Musa Group Announcement
Boutique advisory and private equity firm adds shareholders and operational entities to increase its capacity to make a social impact
After 20 years of successful financial advisory and private equity activity in Africa, creating both wealth and value for communities at the base of the pyramid through impact investment, boutique firm Musa Capital has added capacity by institutionalising itself through the acquisition of commercial and industrial operations and taking on new shareholders.
The resultant Musa Group is now a diversified trading and operating company with products and services in areas key to the transformation of South Africa and the rest of sub-Saharan Africa: Housing, manufacturing, retail finance, fast moving consumer goods (FMCG), and agriculture. The Group retains its original private equity and financial advisory divisions.
Its operating divisions are former investee companies of the Musa Kubu Fund in which Musa Capital directors played pivotal roles at board level in structuring the companies for growth by delivering essential products and services to grass roots communities.
“Our close association with these companies gives us confidence in their ability to deliver further value to us as the Musa Group and to society as a whole,” says Musa Group CEO, Will Jimerson, one of the founders and directors of Musa Capital. “We bought them out of the Fund because of their close fit with our future strategy.”
Management has a stake in the new Musa Group and other shareholders include BEE groupings and large investment institutions.
“Our Group mission is to develop Africa through inspired leadership – by growing businesses that provide relevant products and services made in Africa, for Africans, by Africans,” Jimerson says. “We have, therefore, involved ourselves with shareholders who have the same mission and will support our actualisation of it.
Musa’s track record In the past 20 years includes investments in Ecobank, UBA in Nigeria, and Sonatel in Senegal, all in the mid and late 1990s. One of the Group’s operating companies has a track record of feeding over 1.2 million school children a day throughout South Africa. Another division has been responsible for building over 3 000 middle income housing units for mining industry employees in the Northern Cape.
“In the past two decades we’ve proved just how much can be achieved with high levels of innovation and comparatively few resources,” Jimerson says. “Having additional skills on board now, via our operating divisions, enables us to scale significantly the transformational effect of our entrepreneurialism. In addition, with the institutional backing of our shareholders along with the company’s larger organisational footprint, we’ve broadened our access to project capital. “All of which positions us to improve the quality of life for at least 5 million Africans within the next five years.”
The Musa Group is made up of four divisions. The FinServe Group provides, among other retail financial services, insurance and pension-backed housing loans.
The Skyward Group, which is the country’s only manufacturer of uPVC windows and doors, provides low cost housing as well as the finance for people to rent to buy the houses it builds.
The AFH Group, which owns a number of Spar retail outlets in KwaZulu-Natal, has established an integrated value chain that incorporates products from small scale farmers in the delivery of fresh produce to Spar outlets around the country.
Musa Capital will carry forward the company’s original and rapidly expanding advisory and private equity business.
Lumkile Mondi, former chief economist of the Industrial Development Corporation (IDC), is non-executive chairman of the Musa Group.