In a significant development for South Africa’s food processing sector, Thebe Investment Corporation (Thebe), a prominent black-owned investment management company, has secured bespoke funding from Hybrid Capital, a division of Old Mutual Alternative Investments (OM Alternatives). This funding will enable Thebe to acquire an additional 40% stake in Pride Milling, one of South Africa’s leading maize milling companies.
This acquisition will position Thebe and the existing shareholders as the majority owners of Pride Milling.
Founded in 2001, Pride Milling has evolved from a small enterprise into a sophisticated operation, earning a trusted reputation in the market. Its products are essential to the South African diet and are also exported to various regions across Africa. With this new investment, Pride Milling is poised for continued growth.
Hashim Pohplonker, Senior Investment Associate at Hybrid Capital, highlighted the broader impact of this funding, stating, “Our investment underscores the crucial role of private sector contributions to industries that ensure food security in South Africa. A significant portion of our population faces food insecurity. Through Thebe’s acquisition of Pride Milling, backed by Hybrid Capital, we anticipate improvements in the food value chain, job creation, and enhanced availability of affordable, nutritious staple foods for many South Africans.”
Statistics from Stats SA reveal that in 2021, around 21% of South African households experienced inadequate access to food, particularly in urban centres such as Johannesburg and Cape Town.
Pohplonker further noted that Hybrid Capital’s involvement in this transaction exemplifies its commitment to fostering partnerships that drive South Africa’s economic growth. “This transaction showcases the potential of long-term, collaborative partnerships in promoting sustainable economic development and empowerment. We are proud to support Thebe and Pride Milling, both of which share our dedication to sector development.”
Rapulane Mabelane, Chief Investment Officer of Thebe, emphasized the strategic importance of this acquisition, stating, “Gaining a majority stake in Pride Milling enhances our position in the food and agriculture sector and aligns with our mission to drive transformation, grow local industries, and support communities. Partnering with OM Alternatives Hybrid Capital and the outstanding team at Pride Milling, we are well-equipped to make a significant positive impact on food security. Our increased shareholding will also grant Pride Milling employees a direct stake in the company and expand supply opportunities for small and women-owned farms.”
Jorrie Jordaan, CEO and co-founder of Pride Milling, expressed optimism about the future, saying, “This partnership extends our longstanding relationship with Thebe. With additional resources and strategic guidance, we are set to expand our operations, continue providing equitable access to staple foods, and contribute to economic development.”
Pohplonker also remarked that despite current economic challenges, this investment reflects ongoing confidence in South Africa’s economy and strengthens the Hybrid Capital investment portfolio.
OM Alternatives, a leader in alternative investments, continues to drive innovative and impactful funding solutions. With this latest investment, OM Alternatives reaffirms its commitment to key economic sectors and its dedication to making a lasting positive impact.
Main Image: Milling Middle East & Africa
