News & Insights

Commenting on the Trump US election win, The Africa Report states that the US economy could still achieve a soft landing, which would improve prospects for emerging-market currencies such as the rand. Mergence Head: Equities, Peter Takaendesa, added to the story saying that a combination of SA political stability with a continuation of US Fed interest rate cuts could work together to stabilise the rand, potentially leading to rating agencies and related capital flows turning in SA’s favour

Commenting on the local market impact of the Trump electoral victory in the US, Mergence Head: Equities, Peter Takaendesa, noted that if Trump’s policies are implemented, the external environment would not be of much help to SA’s economic recovery – making self-help economic reforms more important. If SA could resolve key structural issues and boost business confidence, this together with a Fed that is likely to continue trimming interest rates could stabilise the rand. This could potentially lead to ratings agencies and related capital flows turning in SA’s favour.

The well-respected Public Eye weekly newspaper in Lesotho ran their cover story on the success of Sanlei Premium Trout and its recent breakthrough into the US export market. Mergence Investment Managers (Lesotho) has a 100% private equity stake in this unique aquaculture project which continues to have a positive ESG impact on the Lesotho market and Basotho communities.

Commenting on the Competition Tribunal’s ruling to disallow the Vodacom/Maziv merger, Peter Takaendesa, Head: Equities at Mergence Investment Managers, said that the prohibition will have implications for other market consolidation transactions that were waiting for the outcome of this case. It is quite likely that Vodacom will deploy more of its capital outside South Africa or prioritise repaying debt should it not win the case on appeal. Regarding the wider trend, both Vodacom and MTN have realised that it may be too late to build large national fibre networks of their own and are therefore looking to buy minority stakes in existing fibre network operators to optimise capital expenditure and share infrastructure.

Commenting on the guidance provided by the new Prosus CEO, Peter Takaendesa, Head: Equities at Mergence Investment Managers, said on News24 that the Mergence view remains that a combination of sustained profitability improvement in all non-Tencent operations of Prosus, open-ended share buybacks continuation and disciplined capital allocation going forward will be very strong drivers of closing the discount to NAV at both Prosus and Naspers.

In Financial Mail, Peter Takaendesa, Head: Equities at Mergence Investment Managers, gives the Mergence long-term outlook on various stocks. He unpacks the merits of investing in Motus (the diversified business in the automotive sector) and suggests that that a long position in Motus could be paired with a short in one of the retailers where the sector has already rerated sharply.

Peter Takaendesa, Head of Equities at Mergence Investment Managers, comments in Mail & Guardian on the matter. He notes that the jury is still out on whether Canal+ will get good value out of MultiChoice. Additionally, MultiChoice’s efforts to cut costs—such as streamlining content and reducing decoder subsidies—are akin to “running fast to remain in one spot.”

The intricacies of raising infrastructure finance. In the 2024 Mining & Energy Handbook produced by The Brief in Namibia, Hileni Nghinaunye, Portfolio Manager at Mergence Unlisted Investment Managers (Namibia), writes about the sophistication and knowledge required to raise finance for renewable energy projects. Mergence is launching its Fund II on the back of the success of Fund I, which will continue to invest in the renewables sector through practical private funding options. By boosting the energy security of Namibia, we are both contributing to the national economy and helping to uplift communities.

In the annual Business Day “Earth” publication, various critical environmental issues are addressed, including water in South Africa. Pointing to a potential holistic, long-term solution, Kasief Isaacs, Head: Private Markets at Mergence Investment Managers, discusses Mergence’s investment in two private water concessions via a Public Private Partnership, which have had a remarkable impact both on the communities served, as well as the environment.

Following Capitec’s results, Radebe Sipamla, senior investment analyst at Mergence Investment Managers, comments on the group’s aims to grow its international footprint after its investments in technology helped drive market share gains in its value-added service offering.