Genesis Securities, a Johannesburg-based stock broker, is changing its name and management and expanding into new services such as fixed income and derivatives trading.
The company is being rebranded as Khumo Securities and will be controlled by a black-owned investment company called Smith Barney Capital, of which Khumo’s new chief executive officer, Mzwakhe Nhlanhla, is the majority shareholder.
“We saw an opportunity in a largely untransformed sector to build a business,” Nhlanhla, 34, said in a phone interview.
South Africa’s financial-services industry is among those that remain dominated by white owners more than two decades after the end of apartheid, with new rules due to come into effect in January aiming to help redress the imbalance. Genesis’ transformation into Khumo is the latest in a series of deals that have made some inroads into boosting the black ownership and management mix.
Last month, Johannesburg-based Anchor Group agreed to sell a 51% stake in its brokerage business to a group of black investors led by South African property mogul Sisa Ngebulana. And last week, New Seasons Investment Holdings and Nodus Equity said they will combine their private-equity assets to form a new majority black-owned South African buyout fund.
Black money managers currently oversee about R490 billion ($36 billion) in assets, about 5.6% of South Africa’s total savings and investment industry, according to a report published in September by researchers at BEE.conomics.