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Bakubung Factions Bury Their Seven-Year Hatchet

Breakthrough bodes well for government intervention in Rustenburg platinum belt

ONLY the champagne was missing when the Bakubung royal family, the directors of the tribe’s commercial entities and financial adviser Musa Capital publicly signed a deal to bury the hatchet in the long-standing row over Bakubung shares in junior platinum miner, Wesizwe.

The differences between two Bakubung leadership factions go back to 2007, when it emerged that a substantial portion of the community’s stake in JSE-listed Wesizwe, which is building a platinum mine on Bakubung land, had been put into a complex web of companies by Musa Capital.

It had been used as collateral to raise funding from the Industrial Development Corporation (IDC) and Deutsche Bank for other ventures.

The attempts to make peace went at a slow pace at first, but North West standing committee on public accounts chairman Hlomani Chauke pressed the parties to look beyond their differences.

But last week, piles of documents, empty water jugs and spent cooldrink cans strewn across the boardroom table at the auditor-general’s premises in Pretoria, attested to the success of the latest effort.

The marathon open stakeholder meeting lasted close to eight hours.

The breakthrough is significant beyond local and regional affairs. It is a rare success for government-led intervention in the troubled Rustenburg platinum belt, where communities believe they are not benefiting from the mining activities carried out on their land.

“This is a proud example of government doing its job and helping to repair the fissures in a community that I know will be one to stand for success,” said Musa Capital founder William Jimerson.

Bakubung acting queen Margaret Monnakgotla said the seven-year battle was ended because of the Bakubung’s willingness to stand together. They are an impoverished 30,000-strong community at Ledig near Sun City. The agreement would soon be announced at a community meeting.

The royal family had raised concern about the “disappearance” of their 33% stake in Wesizwe, which is expected to start production by 2018. The shares were sold in 2007 for more than R700m, amid fears they were getting diluted because the tribe did not have funds to buy more shares as Wesizwe continued to raise capital.

The transaction involved deals with the Deutsche Bank and the IDC — which still holds a close to R100m balance until disputes over financial and governance affairs are settled.

According to records, most of the money was invested in nine portfolio companies in the retail, finance and construction sector, through the Musa Kubu Fund, a partnership between the tribe’s investment arm, Bakubung Development Corporation (BCDC) and Musa Capital.

Under the new deal, the Bakubung royal family and the directors of two commercial entities linked to the community, the BCDC and Bakubung Economic Development Unit (Bedu), a developmental arm, undertake to “reconcile their differences”.

They also recognise the royal family and acting queen’s authority and role in the governance structures of the community.

Bedu chairman Disele Phologane said: “We hope this will herald a new life, a new way and a new thinking, which will be good for the development of the community.”

Mr Chauke, also general secretary of the Association of Public Accounts Committees in SA, said the intervention demonstrated the government’s commitment to accountability. “Our role from government point of view is to make sure that our people are guided properly. And that as we administer minerals on behalf of our communities we do it properly so that there is a benefit for our people.”

An article published in the Business Day on Tuesday, 27 May 2014

http://www.bdlive.co.za/business/2014/05/27/bakubung-factions-bury-their-seven-year-hatchet

27-May-2014 | Setumo Stone

Musa Capital Facilitates USD30 million Loan For Agribank

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The government of Zimbabwe last year appointed Neverseez and Musa Capital as financial advisors for the restructuring of Agribank.

The main aim of the advisors was to assisting the acquisition of a strategic investor that will support government operations of the bank by providing equity finance and lines of credit and offering other strategic support services such as technical assistance, capacity building and information technology enhancements.

In this respect Musa is proud to announce that Agribank has secured a USD30 million line of credit from the Industrial Development Corporation of South Africa to support local industry.  The IDC is a self-sustained state owned national development finance institution set up to promote economic growth and industrial development. Approval of the loan demonstrates the IDC’s confidence in the state owned bank after South African firm extended a similar amount in 2011 in support of the local banks operations.

The bulk of the six year facility is aimed at agro-focused businesses such as seed and fertiliser production, horticulture, cotton, dairy, tourism and tea with USD5million earmarked for Greenfield energy projects.

Musa Capital is proud to be part of this drive by the Agribank to capacitate the local industry in Zimbabwe and will continue to assist and facilitate the mobilization of resources to support agriculture in Zimbabwe.

Bayelsa Development And Investment Corporation

Following last Octobers investment forum arranged by Musa Capital, in which South African organisations were introduced to business and investment opportunities in Nigerias richest oil-producing state, Bayelsa, the Bayelsa Development and Investment Corporation (BDIC) will officially open its South African offices on Thursday 9th May 2013.

As part of a state visit, Bayelsas governor, Henry Seriake Dickson, will attend the opening, along with a number of Nigerian and South African government officials, including representatives from President Zumas office. The establishment by the BDIC of a South African presence is the first such initiative by any Nigerian development agency and, in seeking assistance internally within Africa rather than from extra-continental entities, marks a shift among African decision-makers.

South Africas IDC is providing capacity building support for the BDIC and considering several investment initiatives in the State. Co-founder of Musa Capital, Antoine Johnson, says the BDIC office and Bayelsa residence are evidence of the practical approach being taken by politicians and businessmen in both countries, ensuring that the investment bridges being built convert rapidly into benefits on the ground.

South African investors and businesspeople were doing site visits for other projects, including the building of an airport, a sea port, road infrastructure, and a hotel, in Bayelsa last week. Musa Capital is co-arranging a USD$500 million debt facility for the State to enable it to implement various infrastructure projects.

Johnson says: “Helping to give effect to Bayelsa’s development objectives meshes closely with Musa’s own ethos of bridging the world to African opportunity and, in this case, linking the continent’s juggernauts in order to nourish African opportunity with African capital.”

Bayelsa State Planning Workshop

Six months after an investment forum arranged Musa Capital, Nigeria’s richest oil-producing state, Bayelsa, last week (ending 26th April 2013) hosted several South African corporates, financial institutions, and medium-sized businesses at a planning workshop that will prioritise these organisations’ investment and other involvement in large-scale infrastructure projects.

The projects include the building of an airport, a sea port, hospital, road infrastructure, a hotel, and the core of the built environment of a city. Representatives of the South African organisations attending the workshop also visited the sites of the various projects. One of South Africa’s largest development funders, the IDC and the DBSA were  represented at the workshop and a keynote address by the IDC’s chief economist, Lumkile Mondi, emphasised the job creation and skills transfer benefits of Bayelsa’s preference for seeking help from other African countries rather than from outside the continent. Musa Capital co-founder, Antoine Johnson pointed out that Musa’s mandate from Bayelsa State was not only to bridge the investment and business opportunities in both countries at an official and investment level also but to accelerate practical execution of the State’s development strategies.