Cover Story: Sakhumnotho – a world-class Pan-African investment holding company

Sakhumnotho –

a world-class Pan-African investment holding company

Sakhumnotho is composed of two Zulu words: ‘Siyakha’ meaning ‘building or creating' and 'Umnotho’ meaning ‘wealth’ or ‘the economy’. As the name implies, Sakhumnotho aims to create value for its shareholders while giving back to the communities around it and helping to build the economy for South Africa and the world.

Prof. Sipho Mseleku

President & CEO of the Sakhumnotho Group

As an investment holding company, Sakhumnotho Group Holdings operate on a simple business model and flat structure geared towards long-term investing, while appreciating opportunities that realise short-term revenue generation.

The group’s strategic objective is to grow its net asset value across all its investments, aligned with its strategic plan. The strategic sectors it invests in include financial services, mining, energy (oil, gas and renewables), property, agriculture and education, technology, media and telecoms. To further maximise short-term revenue generation, the group has established operating business units to unlock more value and leverage value chains in the sectors where it invests. Sakhumnotho Energy, Mpilo Capital and Sakhumnotho Power Services aim to supply world-class services offerings to their respective clients.

Sakhumnotho’s mission is to identify and participate in lucrative investment opportunities in strategic sectors, while promoting and driving broad-based empowerment of black businesses and individuals. It also implements sound networks and relations with business associates, public sector institutions, private sector companies both locally and internationally, further championing the advancement of intra-Africa trade and continuous flow of resources on the continent.

Promoting innovative technology

Recently the group made investments that promote innovative technology to advance the socio-economic growth of South Africa and the African continent at large. Sakhumnotho Group Holdings has partnered with Ennova Holdings, a pioneering FinTech start-up that is venturing into the digital payment industry using blockchain technology.

The group’s partnership with Ennova propels the African market into the next phase of the Fourth Industrial Revolution (4IR). It is anticipated that the current investment in digital infrastructure on the African continent will facilitate the quick and easy incorporation and adoption of this new technology.

“Sakhumnotho has identified investment in technologyenabled businesses as a vital component of the group's growth strategy,” says Professor Sipho Mseleku, President & CEO of the Sakhumnotho Group.

“Our investment in Ennova represents an opportunity to continue investing in leading technologies in the FinTech segment whilst partnering with a young, dynamic, and ambitious team that is bringing modern technology to Africa. We are a values-driven organisation, and we are pleased with the alignment between Ennova and ourselves. We look forward to working with the Ennova team to create shareholder value.''

Partnered with Everlectric to deploy globally leading electric vehicle technology in SA

Sakhumnotho Group Holdings has also partnered with Everlectric, an innovative start-up, to deploy globally leading electric vehicle technology, coupled with a disruptive commercialisation model, in the logistics value chain in South Africa.

Sakhumnotho has long invested in the energy sector through its energy division, Sakhumnotho Energy, and in recent years, the group has sought opportunities to invest in and expand access to clean energy to grow its portfolio in this sector. While the company does not ordinarily partner with start-ups, it was excited by the opportunity to partner with an innovative company that was offering the full, green ‘last mile’ logistics services to a varied range of companies. Sakhumnotho has entered into binding agreements to acquire up to 30% interest in Everlectric.

“Sakhumnotho has identified investment in technologyenabled businesses as an important component of the group’s growth strategy. Our investment in Everlectric represents an opportunity to invest in leading technologies in the electric vehicle market segment whilst partnering with a young, dynamic and ambitious team bringing recent technology to South Africa,” says says Ronnie Mulaudzi, Group COO at Sakhumnotho.

“As a values-driven company, we are pleased with the strategic alignment between ourselves and the Everlectric team. We look forward to collaborating with the team to fully develop and roll out a unique and innovative last-mile logistics solution in the market, true to our objective of building sustainable businesses in all forms,” adds Prof Mseleku.

A new and important player in the energy market

Sakhumnotho Group Holdings recently also acquired a 26% stake in the Refinex and SA Tank Terminals (SATT) holding company. This is a precursor to increasing shareholding in the company in the future and signifies the arrival of an important new player in the energy market.

Refinex, formerly Energy Oil Oleochemicals, was founded in 1983, and is one of the largest privately-owned petrochemical companies in Southern Africa. It is a bulk supplier of fuel oils into the energy market. Together with SA Tank Terminals, which provides a bulk liquid storage service to customers, the company ensures easy access to a supply of products through processing, manufacturing, and blending petrochemicals; transportation; and storage. The Refinex and SATT customers include a range of private sector as well as public sector entities.

Sakhumnotho’s 26% acquisition of Refinex and SATT is hoped to have a positive impact on the entities involved, and also on the industry. Refinex and SATT are privately owned businesses with the skill and technology to process various petrochemical streams. Matched with Sakhumnotho’s own experience in oil & gas, through its investment in Total Southern Africa, as well as the group’s network across Africa, the companies aim to consolidate the value chain – from supply to storage to transport and, finally, to the customer.

In recent times, State-Owned Enterprises (SOEs) have been faced with a variety of difficulties relating to their operational activities, leading to conditions that affect both business and society. There are solutions to be found, including in the renewable arena. With the right partners, and with government support, this partnership could offer and develop cradle-to-grave solutions.

An example of this journey already exists in the area of waste where waste streams are taken from one SOE, processed (thanks to the possession of the plant, equipment, and licenses), and then the fuel is used by another SOE.

“We are excited and proud to be part of Refinex and SATT. This deal further deepens our involvement in the oil & gas sector and allows us to play a greater part in the industry’s future. There are real synergies of business, purpose, as well as spirit between the two companies and we look forward to growing together as we map the journey ahead and create value for all involved,” says Prof Mseleku.

We find opportunity in the diversity of our investments and our innovation that leads to new and exciting paths.

Giving back to communities

“Our purpose is established in the support we give to our public benefit organisations, which create an impact in various communities around the world, GBR and GFFJ. Sakhumnotho Foundation and Fohloza Foundation are an integral part of our business. The Global Business Roundtable is a global platform of Christian businesspeople, professionals, and ministries that deal with the holistic development of God’s people in line with God’s purpose for their life. The Global Business Roundtable (GBR) has a presence in 82 countries, 43 of them in Africa.

“Our vision is to build a world-class Pan-African investment holding company, which contributes to developing South Africa, Africa, and the world beyond,” Prof Mseleku adds.

Sakhumnotho Group Holdings is especially proud of its divine privilege, being able to support the Global Fund for Jesus (GFFJ) and Global Business Roundtable (GBR) in 2021.

During the year, the GFFJ hosted a series of events, starting with the GFFJ Gift Hamper Distribution, which donated a total of 2 000 gift hampers comprising of food, uniforms and stationery to indigent communities and child-headed households across Kwa-Zulu Natal, Limpopo, Mpumalanga, and Gauteng, with plans to expedite to all nine official provinces in 2022.

“The Sakhumnotho Group is an organisation passionate about poverty alleviation and the upliftment of poor communities across the globe. We reward NGOs every year, who are concerned about human development, the elimination of inequalities, and social injustices,” Prof Mseleku explains.

“In 2021 we donated R100 000 cash grants to 20 NGOs and trailblazers – amounting to a total of of R2 million – to help support various communities in Africa.

‘’We have embraced innovation, technological advancement, and expanded into different territories and markets. One way we have done this is through diversifying our investment profile, proving how much we are willing to push the boundaries and innovate,’’ he adds. ■

Professor Sipho Mseleku (BA(Hons), LLB, LLM (Taxation), H Dip Company Law Witwatersrand, Johannesburg) has held the positions of President and CEO of the company for 21 years, as well as the Convener of the Global Business Roundtable (GBR') for 11 years, and the President & CEO of the Global Fund for Jesus (GFFJ) for 11 years.

He is also Adjunct Professor at the College of Economics and Management Sciences at the University of the Republic of South Africa (UNISA). Prof Mseleku is a Fellow of the Institute of Directors of Southern Africa (IoDSA) and an attorney of the High Court of the Republic of South Africa.