Who we are
We are an African financial services group, diversified by our operational footprint and the spread of industries in which we invest. The group’s focus is on quality investments in niche industries with innovative value propositions that have high barriers to entry.
Operationally, the Ecsponent group creates wealth by investing in companies that offer a range of niche financial services in South Africa and Africa, offering targeted investment services, credit solutions and enterprise development initiatives that improve financial inclusion for SMEs. We balance the short-term cash generative operational activities through our Equity Holdings business unit, which invests in listed and private equity with a longer-term investment horizon.
Since inception, we have expanded through a combination of substantial organic growth and a series of strategic acquisitions. Today, we’re an African financial services group with core activities in four African countries and a spread of investments across multiple territories, currencies and investment sectors. Our investment mix and experienced management team have built a strong track record through organic growth, mergers and acquisitions, and corporate actions since 2010:
Our business model
Ecsponent finds opportunities to invest in markets, industries, or technologies that produce products and solutions that satisfy consumers’ latent needs or to create markets where none existed before. To do this, while generating sustainable returns, our business model distinguishes between operational investments and strategic longer-term investments.
Footprint and distribution
We operate across Southern Africa, with offices in Botswana, Swaziland, Zambia and in five provinces in South Africa. We offer similar products and services – Investment Services and Credit – in all countries of operation, with variations as required by local regulations. Our regional presence provides a platform for efficient service, improved ability to respond to market needs and greater client satisfaction. Our equity investments are spread across Africa, Europe and Australia, and diversified across multiple currencies and market sectors to mitigate risk.
These services vary in different jurisdictions of operation.
The core business units include:
Through a combination of secured finance, logistics and procurement support, skills development and training, we support different business sectors, including:
By providing solutions like:
Capital is raised via Ecsponent’s R5 billion JSE-approved preference share programme and similar linked-loan unit programme in Swaziland.
Additionally, this unit leverages the infrastructure of the group’s financial services footprint and broker network to provide other
financial and investment products and services to the client base.
Ecsponent’s Equity Holdings investment criteria have remained unchanged over the years and the group has become known for its ongoing merger and acquisition (M&A) activities. At the end of the reporting period, we announced a series of transactions*, when combined exceeded R1 billion.
It is not just the quantum of these transactions that is significant to the group, but more importantly the sectoral, geographical and currency spread that is added to our Equity Holdings portfolio. Moreover, these investments represent assets in high-growth areas with outstanding prospects and offers exceptional synergies to satisfy consumers’ unmet or unstated needs or to create markets where none existed before.
These transactions are:
||Digital Media and Marketing
Ecsponent's growth story
As a JSE-listed company with operations expanding across Africa, Ecsponent focuses on opportunities where local businesses can be leveraged, grown or brought into the group.
Ecsponent has a strong future-based investment philosophy and deploys investment funding to companies that demonstrate a strong growth track record, coupled with untapped commercial potential that can result in above average investment returns. Overall, the group seeks out value-enhancing acquisitions that complement the group’s business model and are aligned to its expansion plans or other investment.
Established in 1995, the venture capital investment holding company John Daniel Holdings (JDH) listed on the JSE’s Venture Capital board in August 1998.
In 2010, the company’s shareholders introduced a group of investors to the business, which sparked the start of a long-term relationship and resulted in a fundamental shift in the business’ future. Later in the same year, a new board of directors and management team were appointed to JDH. This change in leadership refocused the company’s strategic direction, resulting in significant growth, improved governance and relationships with shareholders.
Following these changes, the primary funder at the time agreed to convert its debt to equity, backing the management team and the group’s strategy. And so, from humble beginnings, a venture capital company with two subsidiaries evolved into what is today, a fully-fledged and rapidly growing African Financial Services group with multiple subsidiaries. The group has expanded its horizons to include a number of geographies across Africa but has retained the same core focus which has made the business so successful.
Ecsponent’s exponential growth
R2 235.8 million
R1 214.8 million (2017)
p.a. five-year CAGR
R321 million (2017)
p.a. five-year CAGR
Profit after tax
R67.6 million (2017)
p.a. five-year CAGR
p.a. five-year CAGR
Group profit after tax
Group operating profit
Ecsponent intends to become the premier provider of financial services in the niche market segments of the territories…
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The Ecsponent group fuses traditional, proven investment principles with progressive, creative thinking that…
Goals and Initiatives
The group seeks to identify, develop and profitably commercialise intellectual property and technology predominantly…