A few months after conducting a successful Initial public Offering (IPO) and subsequently listing on Botswana Stock Exchange (BSE), Afinitas Limited remains bullish about the future, targeting new acquisitions in the financial services sector. It has not been enticed to pursue mining and exploration investments.
The company’s Executive Director, Leutlwetse Tumelo, said this week that their business model is premised on bringing diversification to investors by investing their money in offshore companies. Investing in unknown or less known markets comes with risks. Tumelo acknowledged such but said many African economies are emerging from varying circumstances such as corruption and political instability. He said more economies in Africa offer an opportunity for service oriented investments and many of them are sustainable.
Afinitas listed on the BSE in July this year and expects to publish its first ever financial results in March 2016. The company has put 213 million shares on the stock exchange with more than 2 million traded since the listing according to Tumelo. Tumelo, who has worked as a stockbroker, said the company has performed well since listing and has maintained a steady price of 100 Thebe per share until just recently when it plummeted to 98 Thebe per share.
Afinitas will not be making any investments in Botswana, as requirements by the International Financial Services Centre (IFSC) do not allow so. Afinitas was accredited by the IFSC in December 2014. Tumelo said the intention is to invest in other countries and then repatriate the funds back home if all goes according to plan. The company recently acquired its first subsidiary - a 50 percent stake in a company known as Africa Events Limited which owns the African Financial Sector Investment Conference which is held annually.
Tumelo expressed excitement at the development, which will not only bring some revenue to Afinitas but will also present new opportunities for the company for further investments. He said the gaining of a portion in the company was a major achievement which will be of strategic importance to Afinitas’ ambitions of becoming a Pan-African company. The conference, which will happen next year in London, promises to be a cash cow for the company and will be in its fourth year running.
Afinitas has ambitious plans of scaling up investments in the financial services sector and intends to bring as many subsidiaries on board to achieve that. “We have so far delivered what we promised during the IPO by setting up a new subsidiary,” said Tumelo.