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Competition Authority okays Afena Capital citizen takeover

The Botswana competition regulators have given the management of Afena Capital Botswana (Pty) Ltd the go ahead to acquire 51% shareholding in the asset management company from South Africa’s Afena Capital (Pty) Ltd.

Mr. Bakang Seretse
Mr. Bakang Seretse

The deal, which transforms ownership of asset management companies in the grey haired industry, was only awaiting Competition Authority authorisation and approval of industry regulator, the Non Bank Financial Institutions Regulatory Authority (NBFIRA).

“The Authority determined to unconditionally authorise the proposed transaction on the grounds that the proposed transaction is not likely to result in the prevention or substantial lessening of competition, or endanger the continuity of the services offered in the market under consideration,” the competition authority said. “The market structure in the asset management in Botswana will not be altered and as such does not raise any competition concerns.”

However, the authority said as stated under section 66 of the Act, “this approval does not override or negate any other mandatory statutory approvals or processes that any of the parties to this merger must comply with under the Laws of Botswana”.

The deal encompasses all of Afena Capital business in Botswana, including, inter-alia, its main pillars of Institutional Asset Management and Retail Investments. Afena Capital Group Board has supported the transaction, which will make Afena Capital Botswana one of a very few citizen majority controlled asset management firms in Botswana.

Afena Capital Botswana Managing Director, Bakang Seretse said the transaction is a key milestone in the intensive, on-going citizen empowerment process at Afena. “Our empowerment strategy addresses all of the principal components of citizen empowerment as envisaged by our clients and indeed with the general spirit prevailing in the country. Having majority citizen shareholding in Afena Capital Botswana is a key outstanding item on our agenda and provides a catalyst to further advance the other growth aspects of our business,” he said.

For Afena Capital Botswana, the transaction will allow it to build on the success the firm has enjoyed so far. It will give the firm an opportunity to operate on the back of a strong, existing platform with the capacity to successfully deliver quality services to key investment segments of the Botswana economy.

For Afena Capital Botswana, the transaction will allow it to build on the success the firm has enjoyed so far. It will give the firm an opportunity to operate on the back of a strong, existing platform with the capacity to successfully deliver quality services to key investment segments of the Botswana economy.

The transaction will also result in the setting aside of more shares for the existing Afena Staff Share Trust.

The transaction is subject to approval by the relevant regulatory authorities.

The local unit is headed by Managing Director, Bakang Seretse who is  also the founding partner in the firm. Chief Investment Officer of Afena Capital Botswana, Alphonse Ndzinge is another and a founding partner in the firm. Ndzinge’s leadership responsibilities include serving on the board of Afena Capital Botswana as an Executive Director, participation in the various sub-committees of the board as well as the Management Committee (MANCO) of Afena Capital Botswana.

Another founding partner in the firm is Sharifa Noor, who is the company’s Chief Operations Officer. Afena Capital (South Africa) is in the top 20 of South Africa’s managers and looks after R20 billion in assets.

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