Patrice Motsepe’s African Rainbow Capital bites into Moloto Capital Investments

African Rainbow Capital Investments has made headlines recently with its significant capital injection into Moloto Capital Investments, a fully black-owned and women-controlled investment company. The acquisition of a 25 per cent stake by African Rainbow Capital Investments marks a strategic partnership that promises to reshape the investment landscape in South Africa. Merafe Moloto, Co-Founder of Moloto Capital Investments, sat down with CNBC Africa to discuss the implications of this partnership. Moloto highlighted the unique business model of his company, emphasizing their role as activist investors who take control stakes in companies. As the chairman of all the investee companies, Moloto stressed that their approach is hands-on and focused on long-term partnerships. The partnership with African Rainbow Capital Investments brings substantial expertise to the table, with industry veterans like Dr. Johan van Zyl and Mr. Patrice Motsepe leading the way. Moloto expressed gratitude for the support and market access that these experienced investors provide, noting that the collaboration opens up new avenues for growth and investment opportunities. The capital infusion from African Rainbow Capital Investments will be deployed in three key areas. Firstly, the funds will be used to refinance Barak Holdings, their original investor. Secondly, the money will go towards acquiring and investing in new companies, with leverage playing a role in expanding their portfolio. Lastly, a portion of the capital will serve as working capital for Moloto Capital Investments, a company that operates as a permanent capital vehicle rather than a traditional fund. Looking ahead, Moloto Capital Investments is gearing up for a series V fundraise with a target of raising up to 500 million rand through a preference share issuance. The backing of African Rainbow Capital Investments is expected to bolster their fundraising efforts, attracting interest from pension funds and banks. The impact of this partnership goes beyond the financial support, signaling a shift in the dynamics of the investment landscape in South Africa. Throughout the interview, Moloto remained optimistic about the future prospects of his company, acknowledging the transformative effect of the partnership with African Rainbow Capital Investments. The symbiotic relationship between the two entities, with Moloto Capital Investments focusing on control stakes and African Rainbow Capital Investments on minority stakes, highlights the complementary nature of their strategies. In conclusion, the capital injection from African Rainbow Capital Investments not only provides financial backing but also opens up new opportunities for growth and market expansion. The strategic partnership between Moloto Capital Investments and African Rainbow Capital Investments sets a precedent for collaboration and innovation in the investment sector, with a focus on driving sustainable value creation and long-term success.