In a significant development in South Africa’s business landscape, a consortium led by former Deputy Finance Minister Mcebisi Jonas has acquired a minority stake in Apex Group’s South African operations.
The consortium, which includes Noluthando Gosa, founder and CEO of privately-owned investment group Akhona, is set to become a new broad-based black economic partner in South Africa, replacing Ditikeni Trust, which recently ended its 16-year relationship with Apex SA. However, as is often the case in such transactions, the value of this deal remains undisclosed.
Mcebisi Jonas, who also serves as the Chair of MTN Group and holds non-executive director positions in companies like Sygnia Asset Management and Northam Platinum, as well as leading Ntiso Investment Holdings, expressed his enthusiasm for the venture. “We see this as a milestone entry into the financial services sector for Ntiso Investment Holdings,” Jonas said, “and we look forward to working with [CEO] Peter [Hughes] and the Apex Group, as we jointly drive meaningful growth and development in the South African financial services sector.”
Noluthando Gosa, a prominent figure who previously served as the commissioner of the National Planning Commission responsible for drafting South Africa’s economic blueprint, the National Development Plan and Vision 2030, is also part of the new consortium. Gosa has held and currently holds board positions in several companies, including Verimark Holdings, AON SA, and NinetyOne (formerly known as Investec Asset Management).
“We fully support this transaction and look forward to working closely with our new investors as we continue to unlock opportunities for growth and build strategic hubs in Sub-Saharan Africa to access the abundant pools of talent that we need to support both our African and global client bases,” said Peter Hughes, Apex’s founder and CEO.
Despite the optimism surrounding this transaction, it raises questions about the broader impact of Black Economic Empowerment (BEE) initiatives, particularly on the employment prospects of non-executive, non-politically connected working-class black individuals. The success of BEE efforts hinges on their ability to uplift a wider cross-section of the black population and drive sustainable change.
The connection between Mcebisi Jonas and President Cyril Ramaphosa is notable in this context. Jonas and Ramaphosa share a history that traces back to their involvement in the struggle against apartheid. Their paths converged when Jonas revealed an alleged offer of a cabinet position and a significant bribe during the presidency of Jacob Zuma. Jonas’ refusal of the offer, along with his dedication to transparency, solidified his reputation as a principled figure in South African politics.
The close ties between Jonas and Ramaphosa lead to questions about the role of political influence in BEE transactions. This partnership prompts scrutiny of whether politically connected figures can drive meaningful change for ordinary, non-executive black workers through BEE initiatives.
As this consortium’s acquisition unfolds and the value of this deal remains undisclosed, it will be closely monitored for its impact on the broader working-class black population. The sustainability and inclusivity of such BEE endeavors will ultimately determine their success in fostering tangible economic transformation and employment opportunities for those who have historically been marginalized in South Africa’s workforce.