In a small market like South Africa, greater diversity in investment strategies is crucial. There is a pressing need to integrate equity with debt, offering more flexible approaches to funding. While returns remain vital, adaptability is key to fostering growth in this complex environment.
One encouraging trend is the global surge of interest in private credit. Many leading private equity firms are now actively investing in private credit schemes, signalling a promising shift. Greater coordination within private markets bodes well for future development and innovation.
South Africa has navigated its grey listing with commendable intent, responding positively to recommended actions and sustaining healthy interest from international investors. The implementation of these measures will further enhance the country’s appeal as an opportunity-rich market. However, the increased cost of compliance introduces greater deal execution risk and adds unwelcome complexity to an already challenging business environment.
2. What do you believe the country should be focused on?
There is a clear misalignment between South Africa’s current needs and its future aspirations. While we are deeply focused on the Fourth Industrial Revolution, we remain far behind in addressing basic infrastructure and essential amenities.
South Africa must prioritize reindustrialization and the creation of tangible, value-driven industries. To uplift our largely low-skilled population, we need to invest in artisan training schools that can drive industrial services and infrastructure development. By addressing these foundational needs, we can simultaneously build a functional economy and help lift people out of poverty. Updated infrastructure will usher in renewed stability and confidence for South Africa and the continent, benefiting not only its citizens but also attracting increased foreign investment.
3. What do you anticipate 2025 has in store?
For Ata Capital, I foresee significant momentum in fundraising. The narrative around directing the country’s savings pool towards private assets has gained substantial traction, with considerable efforts invested in educating stakeholders. Hopefully, this growing awareness will translate into tangible action, with measurable results reflected in the numbers.
4. Your portfolios host a variety of companies in several sectors. Not to play favourites, but which sector shows promise and why?
We take pride in partnering with companies committed to driving sustainable growth and innovation in sectors vital to South Africa’s progress.
Our focus includes collaborating with businesses delivering sustainable energy solutions, providing industrial services to Africa’s critical sectors, and enhancing connectivity and data consumption across the continent. Additionally, Ata Capital works closely with enterprises leveraging technology to transform traditional practices in the industrial and mining sectors, fostering more efficient and forward-thinking operations.
5. What were the highlights/ poignant moments for Ata Capital this year?
This year marked a pivotal transition for Ata Capital, as we moved from turbulence to stability. In an environment defined by increasing compliance and competition, we refined our focus and conducted a thorough review of our business operations. Our efforts are centred on streamlining processes to foster more cohesive and effective ways of working, enabling us to better serve our investors and portfolio companies. Having identified improved processes, we are preparing to implement them in the year to come.
A standout highlight has been the unwavering support from our board. While they challenge us to excel, they are fully aligned with our vision for growth—both for the company and the team. This alignment provides a strong foundation for our continued progress.
6. Do you have a message for your team or investors to ready them for the new year?
Mark Twain’s quote, “It’s not the size of the dog in the fight, but the size of the fight in the dog,” resonates deeply when describing us South Africans. This has been another challenging year for our country, our investors, and Ata Capital as we navigate a slow-growth environment marked by high unemployment. Yet, South Africans continue to show remarkable resilience, consistently recovering from the challenges thrown our way. While we may be a small market player, our distinctive grit, ‘gees’, and the resilience of our ecosystem set us apart.
Ata Capital has much to look forward to in the year ahead. While many of our portfolio companies have faced challenging times, the resilience and strategic planning of their management teams have yielded encouraging results. We are optimistic about continued improvements and a performance turnaround for those companies that have struggled.
To my team, I extend my heartfelt gratitude for their perseverance throughout this busy and often trying year. Your dedication and hard work do not go unnoticed. I am reassured knowing that Ata Capital has the right team—one willing to go above and beyond to deliver the best outcomes for our investors and our company.
Ata Capital extends its warmest wishes to our team, board, investors, and everyone in our broader network for a joyous holiday season. We eagerly anticipate the opportunities and successes that 2025 holds in store!
