ImpactAlpha, August 24 – South Africa has an abundance of minerals, renewable energy and other natural resources. It also has a struggling economy, failing infrastructure and the highest unemployment rate in the world.
Madichaba Nhlumayo founded Ditiro Capital in Johannesburg to invest in mid-sized businesses in high-growth sectors, including food processing infrastructure, manufacturing and healthcare.
The Black women-led fund has raised 360 million rand ($14.5 million) with backing from Thuso Partners and local institutional investors the Motor Industry Retirement Funds and Telkom Retirement Fund. Global investment firm RisCura supported Ditiro’s fundraising efforts to help develop emerging fund managers.
The first-time manager is looking to raise up to 800 million rand.
“We are investment professionals who have grown up in South Africa, who know the South African market and who have experience and networks in this market,” Nhlumayo told ImpactAlpha.
Investing in women
The team is looking to make investments of 70 million to 100 million rand in businesses that are positively impacting employment equity, workforce diversity, skills transfer and women.
“As a women-led fund, we want to ensure that we also invest in women-owned businesses [and] products or services that are targeted at women,” Nhlumayo said. “We’re not just a gender-lens fund, but that is something that we want to achieve from an impact point of view.”
