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64 FINANCE | African Rainbow Capital
After Ubuntu-Botho bought shares in Sanlam, Motsepe began working closely with the group’s CEO Johan van Zyl and Johan van der Merwe, who was CEO of Sanlam Investments. Fast forward to around a year and a half ago, the trio decided to start a new enterprise using Ubuntu-Botho as the vehicle to drive a new investment company which provides BEE representation to investee companies.
Black Economic Empowerment
Since its inception as a programme administered by the South African government in 2003, BEE has become an increasingly crucial element that underpins virtually all businesses in the country. BEE not only aims to bring the black majority into the economic mainstream, it is also a growth strategy which strives to maximise the country’s economic potential.
Under the system, companies with BEE representation are given a scorecard, where a higher rating brings a host of bene ts to the company, not least a glowering reputation nationwide. This is where ARC comes in.
Through the di erent groups and trusts that own various sized slices of Ubuntu-Botho, ARC provides a strong BEE presence to the wide range of businesses it chooses to invest in.
“We get approaches from companies all
the time asking for consideration to receive investment, because there is such a huge need for empowerment in South Africa,” says ARC’s co-CEO van der Merwe.

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