About
African Rainbow Capital
African Rainbow Capital (ARC), which was formed in 2015, is a fully Black owned and controlled company of significant scale focusing on opportunities in the South African and African financial services and diversified investments (non-financial) industries. We focus on acquiring a shareholding in businesses that deliver exceptional returns on equity.
ARC is a 100% subsidiary of Ubuntu-Botho Investments (UBI), a Black owned and controlled company which was created in 2004 with its initial main purpose of building black controlled capital. UBI has as its most significant investment a shareholding of about 14% (economic interest) in Sanlam, which makes it Sanlam’s single largest shareholder. As Sanlam’s empowerment partner, UBI continues to seek opportunities to unlock value to both Sanlam and UBI stakeholders.
From the outset UBI’s vision has been to make a difference in the lives of ordinary South Africans by being the premier black-owned and controlled financial services entity.
The first phase of realising this vision was the accumulation of capital in partnership with Sanlam. This objective has now largely been achieved, with UBI’s shareholding of some 14% in Sanlam valued at R20 billion (Sanlam share price at R65 per share).
The second phase has been about partially investing this capital in ARC which continuously positions itself as the leading South African black economic empowerment company.
“The biggest contribution ARC can provide to the broader community is to be a world class company. The challenge is to, firstly, use that world-class base to create money for our shareholders and secondly, to plough money back into communities to make a difference”
Johan van Zyl – Co-CEO, African Rainbow Capital
“In order to be a good corporate citizen, you have to be financially strong. As it’s imperative to do well in order to do good.”
Johan van der Merwe, Co-CEO, African Rainbow Capital
African Rainbow Capital
Business
Philosphy
ARC’s business philosophy has two distinct focus areas – on the one hand, it is about consistently creating value for our stakeholders and, on the other hand, it is about positively contributing to the lives of ordinary South Africans.
We create value for stakeholders, and primarily shareholders, by using our status as a black economic empowerment player as well as our strong balance sheet to acquire a minority interest in companies we invest in. Over a period of time, we offer our assistance at a strategic level to the investee company to ensure value is unlocked.
From the value creation that is achieved, and in particular, dividends that are paid, we are able to further manage this capital to the benefit of stakeholders. This also includes a focus on community-related initiatives of which we are very proud of. ARC makes a difference on a much broader front by supporting deserving communities and causes through wide-ranging social and corporate investment initiatives. We strive to uplift previously disadvantaged individuals and assist them to achieve financial independence during their lifetime. The shareholding structure of UBI includes a broad base of stakeholders that includes trade unions, churches, traditional leaders, women and the youth.
Value creation
As an investment holding company we see value creation as the result of the interdependence as well as the leveraging of strategic relationships.
Our UBI Shareholders
Values
We are a values driven organisation, stemming from our relationship with UBI which is our parent company. At ARC we are committed to the following shared core values:
Respect
towards each other and in our dealings with our stakeholders
Integrity
honesty and ethical behaviour are integral to how we do business
Accountability
keeping our word and honouring commitments
Excellence
high standards of excellence in everything that we do