16/12/2024
COBUY AFRICA (Pty) Ltd 2024 INVESTMENT REPORT AND 2025 OUTLOOK.
As the Executive Chairman of CoBuy AFRICA, I am pleased to present our 2024 Investment Report and provide insight into our strategic direction for 2025.
Investment Highlights:
- Successfully added three external companies to the portfolio, expanding our investment footprint and augmenting our revenue streams.
- Developed four in-house brands, enhancing our service offerings, contributing to asset growth, and bolstering our competitive positioning.
- Assets under management (AUM) have surpassed the 7-figure mark in Rands, underscoring our ability to attract and manage capital.
Market Overview:
The African investment landscape has experienced significant growth in recent years, driven by increasing economic stability, infrastructure development, and technological advancements. CoBuy AFRICA is well-positioned to capitalize on these trends, leveraging its expertise and network to identify attractive investment opportunities.
Strategy and Outlook:
In 2025, we will be recalibrating our investment strategy to focus on fragmented sectors that offer opportunities for consolidation and value creation. Specifically, we will be allocating more capital to the following industries:
- Waste Management: We will be targeting companies that provide essential waste management services, with a focus on consolidation and integration.
- HVAC (Heating, Ventilation, and Air Conditioning): We will be investing in companies that provide critical HVAC services, with a focus on expanding our footprint in this sector.
- Food Processing: We will be targeting companies that supply staple food products, with a focus on consolidation and expansion.
- Home Services: We will be investing in companies that provide essential home services, such as plumbing, electrical, and handyman services.
- Transport and Logistics: We will be targeting companies that provide critical transport and logistics services, with a focus on consolidation and integration.
In terms of allocation, we will be reducing our exposure to Customer Support and Property Management, allocating a minimum of 5% to these sectors. Conversely, we will be increasing our allocation to the aforementioned fragmented sectors, with a focus on consolidation and value creation.
Our estimated allocation for 2025 is as follows:
- Waste Management: 20-25%
- HVAC: 18-22%
- Food Processing: 15-18%
- Home Services: 12-15%
- Transport and Logistics: 10-12%
- Customer Support: 5%
- Property Management: 5%
Our investment approach involves acquiring controlling stakes or complete takeovers of businesses in these fragmented sectors. This strategy enables us to drive growth, improve operational efficiency, and create long-term value for our stakeholders.
We will be employing a range of strategies to create value, including:
- Operational optimization: Implementing cost-saving initiatives and process improvements to drive efficiency.
- Strategic acquisitions: Identifying and acquiring complementary businesses to expand our footprint and enhance our service offerings.
- Debt financing: Utilizing debt financing to fund acquisitions and support growth initiatives.
Our goal is to expand our portfolio to over 15 companies and increase our AUM to over R150 million by 2025.
Conclusion:
CoBuy AFRICA's strong performance in 2024 demonstrates our commitment to strategic growth and investment excellence. As we look to the future, we remain focused on identifying attractive opportunities, building strategic partnerships, and delivering long-term value to our stakeholders.
We are confident that our recalibrated investment strategy, combined with our operational expertise and financial acumen, will enable us to drive growth, create value, and deliver strong returns for our stakeholders.
I would like to thank our team, partners, and stakeholders for their ongoing support. We look forward to continuing to execute our strategy and deliver strong returns.
Gift Braundi
Executive Chairman