RH Bophelo’s Evolution as a Pan-African Company
“The forces that unite us are intrinsic and greater than the superimposed influences that keep us apart.” – Kwame Nkrumah
As we celebrate Africa Month to commemorate the foundation of the Organisation of Africa Unity (now the African Union) in 1963, we are reminded of the importance of pan-Africanism and the powerful impact it can have on driving Africans towards a single goal: to be united in our endeavours to grow our economies, uplift our communities, and be at the forefront of our own socio-economic development. RH Bophelo (RHB) is pleased to announce that we have listed on the Rwanda Stock Exchange. The listing presents us with a great opportunity to diversify our investor base and explore investment opportunities beyond South Africa.
As you may recall, RHB listed on the Johannesburg Stock Exchange (JSE) in July 2017, with R500 million in new capital being raised. The JSE listing allowed the company to access the initial capital required to start operating, and it opened the door for the general public to acquire shares in a majority black-owned and entirely African healthcare investment company that offers growth and returns in a defensive asset class.
It’s RHB’s intention to grow beyond the borders of South Africa in the next stage of its evolution. Our approach to investment is pan-African and we believe that, in our unity, we can achieve more than if each region operates on its own; this is the spirit that led to the establishment of the African Union. As expressed by John Oliphant, RHB’s chairman, “We are a new generation of African leaders, following the footsteps of giants who envisioned and championed the cause for African unity; the Rwanda listing is a realisation of that dream.”
Rwanda Stock Exchange Listing
In April 2020, the RHB directors, with the endorsement of the relevant regulatory authorities, approved the company’s proposed secondary listing on the Rwanda Stock Exchange (RSE).
RHB’s primary listing and exchange will remain as the JSE, with the RSE listing being a secondary. RSE listing is to diversify RHB’s investor base and to facilitate the company’s A Ordinary Shares availability to the wider East African public as well as providing an easy and efficient way for RHB’s stakeholders and partners in the region to participate beneficially in the growth and fortunes of RHB, through ownership. “We are delighted to add value to the Rwandan healthcare ecosystem, and we’re looking forward to interacting with their great professionals,” says Colin Clarke, RHB’s executive director.
The RSE offers RHB the exposure that comes with Rwanda being at the epicentre of East Africa and a leader on the African continent. Rwanda proves to be a jurisdiction in which RHB can unlock capital and the RSE listing will facilitate this as well as acting as an initial springboard into the rest of Africa. “The Rwanda listing couldn’t have come at a better time, especially in a month where, as Africans, we are celebrating Africa Month. This is an opportunity to promote African unity, investments across Africa and its people, deeper regional integration, and to recommit Africa to a common goal,” says Dion Mhlaba, RH Bophelo’s CFO.
The brokers and brokerages in Rwanda, Kenya, Uganda and Tanzania are linked, which provides RHB with an opportunity for both exposure and a deeper and wider spread of our shareholder base. This will, potentially:
- enhance RHB’s weighting in the respective market indices;
- enhance our public profile and awareness of RHB as its shares trade on more than one licensed exchange;
- provide diversification and additional options to RHB’s capital raising activities, rather than being reliant only on the South African market and JSE; and
- facilitates RHB’s preparation for the next phase of being a go-to company for healthcare investments opportunities.
Building the Africa that we want
RH Bophelo has identified a number of potential investment opportunities both in South Africa and East Africa, which will be detailed to prospective investors as part of our planned roadshow and capital raise in the months following the RSE listing. “This is a great opportunity for RH to advance healthcare in Africa. Rwanda possesses very progressive regulations and we are delighted to expand our East African presence from there,” says Quinton Zunga, RH Bophelo’s CEO.
This is an exciting time for RHB as we are at the forefront of developing African solutions for African challenges. Even as the world grapples with COVID-19, the listing and the fact that we have availed our infrastructure to the fight against the virus are a testament to the fact that it is possible to mobilise African resources to improve the livelihoods of our people while transforming our economic landscape through strategic investments. Africa is teeming with fast-growing markets and industries are looking for investment opportunities; RHB prides itself on providing the investment vehicles that will accelerate socio-economic development.
“As Africans, we can make a difference on the continent. After celebrating Africa Day, we believe the future of Africa is in Africans hands. This is the beginning for us in our healthcare journey,” says Quinton Zunga.