Actis to invest in Africa’s largest independent credit bureau
[24 April 2014] Actis, the pan-emerging markets investor, has today announced that is has established Credit Services Holdings (CSH), a buy-and-build credit services business. CSH’s first investment will be acquiring 100% of Compuscan, the largest independent credit bureau in Africa. Actis will be investing in CSH alongside the Compuscan management team, who will continue to manage the Compuscan business. Actis plans to invest $100m into the platform. To assist in the build-out of the platform, Michael Jordaan, formerly CEO of South Africa’s First National Bank and a leading figure in the African financial services industry, has been appointed as Chairman of CSH.
Founded by CEO Remo Lenisa, Compuscan is the fastest growing bureau in South Africa and one of the largest on the continent. Headquartered in Stellenbosch, with offices in Johannesburg and Kampala, it provides multiple credit data, decision analytics services and training, to over 3,500 clients including banks, telcos, retailers, microcredit institutions and insurers, across several countries including South Africa, Namibia, Botswana, Uganda and Ethiopia. The Data Analytics team in Compuscan operates under the Scoresharp brand and is led by Pieter Van Heerden.
Actis has a proven track record of buy-and-build financial infrastructure investments. In 2010, it established Emerging Markets Payments Holdings (EMPH), which offers payment processing services across Africa and the Middle East. Today EMPH has the broadest footprint of any payments company in Africa, contracting with 130 banks and operates in 40 countries across the region.
Commenting on the transaction, Jonathan Matthews, Director in Actis’s Johannesburg office, said: “Actis is backing an excellent and entrepreneurial management team led by CEO Remo Lenisa and we are delighted to attract Michael Jordaan to help build the brand and take it to the next stage of growth. Only 5% of adults in Africa are covered by credit bureaus compared with 64% in OECD countries, and many countries are still without the necessary bureau infrastructure. We are excited to be investing in Compuscan and making the first steps towards bridging that gap.”
Ali Mazanderani Actis’s Africa Financial Services lead added: “There is huge potential in the emerging market credit services industry. We see this as the first in a series of investments in the space and the natural next step after EMPH and Paycorp, in building financial infrastructure in the region. Credit bureaus have the potential to reduce loan interest rates as well as decrease the number of non-performing loans, while increasing financial access, credit expansion and ultimately economic growth.”
Commenting on the investment and Actis’s investment thesis, Remo Lenisa, CEO of Compuscan, said: “Actis’s experience combined with its global footprint and sector specialisation, means that it is uniquely positioned to support us and to grow CSH both organically and through acquisitions.”
The transaction is subject to regulatory approvals.
About Actis
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$7 billion funds under management. Combining the expertise of over 120 investment professionals on the ground in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate. Over 40% of Actis’s investments are located in Africa with over $1.9 billion invested across 18 countries on the continent. Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing, contribute to broader society.www.act.is
About Compuscan
Compuscan is a full service credit bureau. Established in South Africa in 1994, Compuscan has become the leading provider of credit management solutions in emerging markets. The company currently operates in South Africa, Namibia, Botswana, Uganda, Lesotho and Ethiopia. Compuscan provides credit managements services in three parts: as a credit bureau operator, providing credit scoring and data analytics and as an expert credit training academy. Being a reputable and trustworthy provider of customised and innovative applications, Compuscan helps people to make smart business decisions throughout the credit life-cycle to minimise risk and maximise profits, while at the same time educating the consumer to prevent over-indebtedness and reckless borrowing.
With over 120 years combined experience in the operation of credit bureaus, Compuscan’s highly skilled, knowledgeable and passionate group of directors, management team and staff have what it takes to provide world-class credit management services.www.compuscan.co.za
For more information:
Gillian Findlay
Glasshouse
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+27 11 486 3561
Potential for Job Creation, in Addition to Energy Security, Drives Investments in South African Renewable Energy Market, Finds Frost & Sullivan
Large energy users are investigating the scope behind alternative sources to achieve self-sufficiency
CAPE TOWN, South Africa. – 17 April, 2014 – The South African renewable energy landscape is set to change rapidly in the next decade with the government targeting the sector as a possible source of employment opportunities. The strong procurement process in a relatively stable political environment, linked with long-term targets and proactive legislation from the government, will trigger expansion. Several major energy users are privately investigating the potential behind alternative energies and building these costs into their strategic plans.
New analysis from Frost & Sullivan, The Renewable Energy Services Market and its Potential in South Africa, finds that renewable energy is expected to account for more than 20 percent of South Africa’s total power generation capacity by 2030 in comparison to the less than 5 percent it currently contributes.
Global pressure, especially from developed countries where coal is increasingly less of a major part of the energy feedstock mix, will promote the use of clean energy in South Africa. Increasing climate change awareness and the enforcement of policies, such as the proposed carbon tax, will accelerate the shift to renewable energy.
“The South African government has identified the development of a green economy as one of the job drivers in the country, in turn, encouraging investments in renewable energy,” said Frost & Sullivan Consulting Manager for Energy & Environment Johan Muller. “Over and above the necessity of direct jobs for building power plants, other jobs such as those for operation and maintenance, resource economists and experts on monitoring and evaluation will open up.”
Following the feed-in tariff initiative and the subsequent independent power producer tender process, South Africa has a host of renewable power initiatives in the pipeline. As market participants look to tap into this gap in the market, they face numerous teething problems. The slow implementation of the feed-in tariff, the unavailability of data, and the cost of the procurement process stall the market’s surge forward. Coal-fired electricity, even with the recent 25 percent price rise, is still more feasible than renewable energy, especially from a baseload perspective.
“From a private investment point of view, the main challenges included both the lack of local technical know-how and skills- however with more than 60 projects in different stages of completion this challenge is quickly being eroded,” revealed Muller. “Employing overseas transfer programmes can bridge the divide and integrating skills over time will ensure better control and competitiveness in the nascent market.”
If you are interested in more information on this study, please send an e-mail to Samantha James, Corporate Communications, at This email address is being protected from spambots. You need JavaScript enabled to view it..
The Renewable Energy Services Market and its Potential in South Africa is part of the Energy & Power (http://www.energy.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Annual State of the South African Electricity Industry, Power Infrastructure Tracker in Northern Africa, Energy Efficiency and Large South African Commercial Businesses, and The African Gas Turbine Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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BON Hotels Begins Gauteng Footprint
BON Hotels, a Cape Town-based company that owns, manages and markets hotels, took on ownership and management of Riviera on Vaal Hotel & Country Club, in Gauteng. BON Hotels’ CEO, Guy Stehlik says he is excited at the prospect of extending the company’s footprint into the area as part of their expansion plan, and this is merely the beginning of their journey into other regions.
The hotel will be re-named, BON Hotel Riviera on Vaal, and it will be “business-as-usual” but with some minor refurbishments to the facilities. Comments Stehlik, “We look forward to waking her up to her former glory, with a more modern look and feel and a particular focus on providing excellent service to clients, suppliers and most of all, the guests!”
Having committed to a long-term lease, Guy Stehlik has assigned his task team to immediately implement the BON Hotels’ operating systems and processes. A dedicated sales team will be assigned to promote the property to the various markets working closely with the marketing team.
For many, Riviera on Vaal brings back wonderful memories and is surrounded by great sentiment. The 91-room, 5-floor hotel is a converted farmhouse from the 1800’s situated on a bend of the scenic Vaal River. Location is a key decisive factor in the BON evaluation process - Riviera on Vaal is a 45 minute drive from Johannesburg and is well suited to corporate and conference markets, as well as families and leisure travellers, who are looking for a venue that has extensive facilities.
The BON Hotels team will assess and evaluate immediate refurbishment needs, with a focus on upgrading conference facilities and technology. Currently, three restaurants and a floating restaurant give guests the opportunity to choose from a range of menus, also catering to the four conference venues that accommodate up to 200 people.
The Riviera on Vaal Country Club is an 18-hole golf course, with a clubhouse steeped in history. The course has been highly recommended by golfers as a fulfilling challenge to play. There is a variety of water sports available, a gym, a spa, picnics, team building and entertainment for the kids, a heli-pad and shuttle service.
With the financial muscle to take on properties where they can add value, BON Hotels is looking for similar opportunities countrywide. They are currently performing due diligence on properties in Sandton, Rosebank, Cape Town, Umhlanga Rocks and the new “green-shoot” area of Illovo.
IWC Aims for Business Opportunities in Zambia at CBM-TEC
This month, South African industry heavyweights are making their way to the heart of the Zambian mining region to be part of the Copperbelt Mining Trade Expo and Conference (CBM-TEC) - Zambia's premier networking event for international and regional companies that operate within the country's highly-lucrative Copperbelt region, being hosted in Kitwe on 28 and 29 April 2014.
Joining over 80 exhibitors at the conference this year is IWC - South African leaders in cooling towers and cooling solutions in Africa offering fully integrated solutions, from cooling towers to glass-reinforced plastic (GRP) manufacturing and plate heat exchangers (PHE) supplied by SONDEX. The company’s range of products are packaged cooling towers, large field erected cooling towers and natural draught cooling towers. The company also provides refurbishment services thereof.
IWC’s keen interest to explore the possibilities of Zambia’s mining industry is not without good reason. The dynamic industrial growth and recent accessibility of the Zambian Copperbelt region means new opportunities for business.
Company MD Roger Rusch says, “Zambia is of strategic importance to the Southern African mining sector. With the steady flow of investments, the copper mining industry is growing at a rapid rate and we are keen to be a part of this emerging market.”
Zambia has a mining history spanning over ninety years. In the late 1960s, the country was ranked as the world’s third largest copper producer, after the United States and the former Soviet Union. Currently, Zambia is the largest copper producer in Africa and the seventh largest copper producer in the world.
After a successive slump in output over the past few years, the Zambian copper mining industry had a marked rebound in 2013. The country managed a strong growth rate of 6.5 % in 2013, supported by a 20% rise in copper output in 2012. This trend is set to continue and copper output is projected to reach 1.5 million tonnes by 2015, largely due to investment in new mines and the expansion of capacity at existing plants. Robust international copper prices will provide additional stimulus to mining.
The combination of a stable regulatory environment, responsible corporations, and the right technical skills has been the main attraction for investors from across the globe. Zambia now ranks No. 83 out of 189 countries on the World Bank’s Ease of Doing Business index, benchmarked to June 2013.
When asked what IWC can offer to the Zambian mining industry, company MD Roger Rusch explains that IWC specialises in the design and manufacture of cooling towers and fibreglass products e.g. tanks, piping and process vessels that are used extensively in the mining and metals processing industry in Zambia. “We are well prepared to meet Zambia’s mining-industry specific demands,” says Rusch.
IWC has recently launched a fibreglass production facility. This facility is capable of constructing large diameter tanks, pressure vessels, piping and ducting of all vital components in the mining process and has recently supplied large capacity fibreglass filter vessels to FQML (Kansanshi) as well as large diameter dampers to Mopani Copper Mines Plc for the Converter and Acid Plant project.
The dampers that were supplied are in addition to the two large mechanical draft cooling towers IWC provided, one for the gas plant and another for the acid plant. IWC has a proud association with the Zambian copper industry having previously undertaken work for KCM, Mopani and FQML.
IWC also offers a range of heat exchanger solutions covering the easiest to the most challenging applications. Additionally the company operates a state of the art service centre for the servicing and cleaning of plate heat exchangers. IWC are able to provide a comprehensive range of replacement gaskets and plates for most brands and models of plate heat exchanger.
Participating in CBM-TEC 2014 gives IWC the opportunity to make contact with new clients and potential future partners. “We look forward to delivering solutions to ensure optimal efficiency and quality in the mining operations in Zambia,” says Rusch.
Confusion about BEE self-assessments after 31 July 2009
The NABC believes that this interpretation has misled thousands of businesses as it is only partly correct. In addition it has caused many businesses to incur large expenses through agreeing to obtain expensive BEE verification rating certificates which are actually not required by law.
