South African private equity firm Harith General Partners has announced its acquisition of a 46% stake in Mergence Investment Managers, a larger rival in the industry. The deal aims to leverage the combined assets of R59 billion to support infrastructure projects and other investments across Africa.
- The investment from Harith will enable Mergence to expand its presence in sectors such as clean energy, water, and digital and social infrastructure. This move aligns with the growing demand for sustainable and innovative solutions in Africa.
- Harith’s CEO, Sipho Makhubela, emphasized the pressing need for infrastructure development in Africa, citing the continent’s substantial infrastructure deficit. The investment aims to address this gap and promote economic growth by providing essential resources and services to underserved communities.
- The deal also meets the requirements of Regulation 28 of the Pension Funds Act, allowing pension fund managers to diversify their portfolios across various asset classes, including infrastructure.
- Mergence, an asset manager focusing on listed and unlisted markets, offers a range of investment options such as equities, infrastructure, debt, and private equity funds. The partnership with Harith will enable Mergence to expand its financial services business across multiple African countries.
- Harith, founded in 2006, already has a strong track record in infrastructure investments across eight African countries. Their notable projects include the largest wind farm in Africa, and they are currently involved in the restructuring of South African Airways.
- The acquisition comes at a time when sub-Saharan Africa’s GDP growth is projected to accelerate, creating favorable conditions for investment. The deal highlights the potential for economic expansion driven by urbanization, a young and growing population, natural resources, improved digital infrastructure, and increased intra-continental trade.