Investec - Afrikan Heroes

Investec Supports Vox’s Fibre Rollout in South Africa

February 19, 2021

South Africa’s leading financial powerhouse, Investec has provided debt facilities for the ICT and infrastructure provider, Vox, to fund their fibre rollout plans. “The roll-out of fibre via our subsidiary Frogfoot, is key to helping revolutionise the lives of local families and businesses, by providing a fast, affordable and reliable platform for communication,” says Jacques du Toit, CEO at Vox.

“However, the fibre telecommunications game is a competitive one and the right funding partner for growth is paramount. In fact, as work from home becomes the norm, so has the need for fast, affordable, and reliable internet connectivity. This additional CAPEX allows us to continue to provide communities with fast and reliable fibre to both homes and businesses as demand continues to grow.”

Frogfoot has doubled the size of its network, expanding its footprint to smaller towns across South Africa – enabled by a focus on the provisioning of high-speed national long-distance services.

“We are now at the point where fast-growing companies such as Vox and Frogfoot are expanding beyond these areas, into new outlying regions where both homes and businesses still need fibre,” says Laverne Chetty, Specialised Finance Consultant at Investec.

“With the additional funding we have provided, Vox has the capability to implement the next stage of its growth strategy which includes taking fibre to those areas eager to benefit from high-speed internet access.”

Chetty adds that Investec was the mandated lead arranger on the Vox deal who structured the debt package, managed the entire process and brought in Rand Merchant Bank and Standard Bank as fellow lenders. Demand for fibre is expected to continue to increase as pandemic-driven changes like work from home gain even more traction. In the end, the rollout of fibre should not only boost the home market, but also increase business productivity and efficiency, while delivering a connectivity foundation ideal for start-ups and new businesses.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Covid-19: Ninety-One, Formerly Investec, Launches $600 Million Fund For South African Businesses

June 10, 2020

Startups and businesses in South Africa have a new fund. Investment fund manager Ninety-One, formerly Investec, in partnership with a private equity firm, has launched a R10 billion fund ($600 million) that will target investments in South African businesses under stress from the coronavirus pandemic, and the resulting lockdown in the country.

Hendrik du Toit, founder and chief executive officer of Ninety One

“The lockdown, while necessary to protect the nation’s health, has been akin to putting the economy into an induced coma. South Africa faces a once-in-a-generation economic challenge,” said Hendrik du Toit, founder and chief executive officer of Ninety One.

Here Is What You Need To Know

Dubbed the SA Recovery Fund, the fund is a market-led, impact initiative to mitigate the negative economic impact of the Covid-19 pandemic, while seeking a commercial return.

“With this fund, we would like to support quality businesses and protect the nation’s productive capacity, which will in turn preserve thousands of jobs and support the South African tax base,” Hendrik said.

Priorities for the fund are to protect South Africa’s productive capacity during the next 24 months, preserve jobs and protect permanent loss of equity value.

Ninety-One said that the fund will consist of a concentrated portfolio with an appropriate mix of senior and subordinated debt, preferred equity, listed equity and private equity with a deployment time horizon of 18 to 36 months.

The company was formed as Investec Asset Management in 1991. It changed its name to Ninety One in spring 2020:

How South African Startups May Obtain Funds From The Newly Launched Fund

Although the new fund is currently being raised from investors by Ninety-One, it may well be the best time for startups in South Africa to position themselves well for the closure of the fund.

Investec has previously invested in startups such as Omnisient, a Cape Town-based startup that specializes in secure data sharing for businesses. Other investments include those made in Dresden Optics, MadeComfy, and ICM Airport Technics.

However, it should be noted that the company invests largely in companies outside the shores of Africa. It is only hoped that its recent re-branding and the focus of the newly launched fund would propel it to invest more in startups based in South Africa and Africa, at large.

For more information visit Ninety One’s website here.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.