South African private equity firm Harith General Partners has agreed to purchase a 46% stake in its larger counterpart, Mergence Investment Managers. The undisclosed transaction aims to leverage the combined R59 billion in assets to support infrastructure projects and other investments across Africa. Additionally, wholly women-owned firm Shandurwa will acquire a 5% stake in Mergence.According to the African Development Bank, an annual investment of $170 billion is needed to meet these demands. Makhubela emphasized the importance of private investment in overcoming these challenges.The deal is positioned to empower Mergence Investment Managers to invest in critical sectors, including clean energy, water, and digital and social infrastructure. Makhubela explained that the collaboration will also facilitate the expansion of Mergence’s financial services business into other African countries.he International Monetary Fund’s forecast of a GDP growth acceleration to 4% in sub-Saharan Africa in the coming year, up from a projected 3.3% in 2023, adds to the positive outlook. Makhubela sees these factors, combined with urbanization and digital advances, as key drivers for substantial economic growth on the continent. Makhubela said, “Investing in the infrastructure to enable it all makes good business sense.” The acquisition of Mergence by Harith not only signifies a strategic financial move but also showcases a commitment to fostering economic growth and addressing critical infrastructure gaps in Africa. The collaboration aims to unlock the potential of private investment in meeting the continent’s diverse needs and contributing to its long-term development. The success of this partnership will likely be closely monitored as it unfolds in the dynamic landscape of African business and investment
