“How I wish we could create more companies whose philosophy is like that of Mineworkers Investment Company (MIC) ... if we tended to have companies that operate and follow [these] principles ... how much of a difference and an impact we could actually make in the lives of ordinary people.”
These sentiments were eloquently expressed way back in 2008 by then-South Africa deputy president Phumzile Mlambo-Ngcuka. Her remarks were meant to encourage companies to adopt the philosophy exemplified by MIC. Today we can reflect on her words and assess whether the MIC has lived up to her lofty expectations.
Established in 1995 by the Mineworkers Investment Trust (MIT), MIC stands as a shining example of a 100% BEE group.
The inception of MIC marked a significant milestone as it introduced a major labour-oriented organisation, the National Union of Mineworkers (NUM), into financial markets with the explicit aim of generating resources for the development of its members. Its core mission revolves around creating a sustainable asset base for the betterment of workers in the construction, energy, and mining sectors, the very industries from which NUM drew its membership.
Our early-stage funding vehicle, Khulisani Ventures, has provided us with opportunities to partner with innovative, high growth, black-owned businesses that solve South Africa’s socioeconomic challenges while disrupting traditional industries."
If we gauge success by numbers alone, MIC has a remarkable story to share about making a tangible impact on people’s lives.
Starting with an initial donation of R3m from MIT, MIC has seen its net asset value soar to R7.1bn by 2023 and could reach R10bn by its 30th anniversary in 2025.
This remarkable growth can be attributed to its strategic focus on long-term, well-managed assets that shield its balance sheet from economic fluctuations.
Under the leadership of its first female CEO, Mary Bomela, appointed in 2012, MIC boasts a robust balance sheet and a stellar investment track record.
On Tuesday, MIC showcased its financial strength by partnering with Admaius Capital Partners to acquire a stake in Chill Beverages, the owner of the premium mixer brand Fitch & Leedes.
Additionally, MIC’s vision to invest in transformational ventures led it to inject R68.5m into Pineapple, an Insurtech firm catering to the insurance needs of the lower-income demographic. MIC sees Pineapple’s ability to cater to the unique needs of the lower-income, and younger population as impactful, says Nchaupe Khaole, CIO of MIC.
“By affording them access to affordable insurance for their assets, Pineapple contributes to wealth protection within this demographic,” said Khaole.
Similarly, MIC’s investment of R25m in Quro Medical is transforming the healthcare landscape by making premium solutions accessible and affordable for everyone. Quro Medical aims to build the largest virtual hospital on the continent offering world-class healthcare at much lower costs.
These investments embody MIC’s vision to leverage its expertise in identifying innovative ventures that address societal challenges.
“Our early-stage funding vehicle, Khulisani Ventures, has provided us with opportunities to partner with innovative, high growth, black-owned businesses that solve South Africa’s socioeconomic challenges while disrupting traditional industries,” says Bomela.
Almost three decades in existence, MIC has evolved from a modest entity to a key player in the economy.
Despite economic uncertainties, MIC has cultivated enduring relationships with investees, holding shares in a diverse portfolio including Tracker, Vox, Vodacom’s YeboYethu, African Marine Solutions, FirstRand, Metrofile, Primedia, Peermont, Universal Industries International and Rentoza, among others.
The dividends paid by MIC, exceeding R735m to date, have supported various educational and poverty-alleviation initiatives.
One such entity, JB Marks Education Trust Fund, has assisted 1,400 graduates with tertiary education fees. Furthermore, MIC empowers its beneficiaries through the Elijah Barayi Memorial Training Centre, providing on-the-job training for NUM shop stewards in a variety of courses including computer skills. It has so far trained 15,000 people.
As you are aware, the number of female board members, let alone African women, is disappointingly low. Five years ago, MIC started the Observer Director Programme to identify and expose mid-level and rising young black women professionals to all aspects of board functioning, aiming to develop skilled future directors.
“As we celebrate the legacy and impact of the MIC over the last 29 years, we remain dedicated to our mission of supporting the MIT, and its beneficiaries,” says Bomela.
There can be no doubt that MIC is a beacon of transformation and empowerment, setting a precedent for corporate social responsibility and inclusive development in South Africa.
Still, decades of institutionalised exclusion of the majority from the mainstream economy cannot be rectified in just 30 years by one entity committed to transformation.
That said, MIC’s efforts positively contribute to an inclusive economy.
• Lourie is the founder and editor of Tech Financials
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