Unpacking Capricorn's SA bet

Driving the news: Capricorn Group has made a binding offer to acquire an 81.6% stake in Centrafin, a South African specialist asset finance and equipment rental business, at an enterprise value of R788.3 million.

Why it matters: The deal marks Capricorn’s push to broaden its revenue base beyond Namibia and Botswana, where weaker economic conditions weighed on its latest earnings.

The deal: Capricorn is acquiring the stake from Fonzosys, part of the Alviva Group, with an option to take its holding to 100% over five years. The agreed enterprise value remains subject to the finalisation of Centrafin’s audited financial results.

What Capricorn is buying: Centrafin has a R3 billion asset finance book spanning a broad range of asset classes, according to managing director Jenny Gill. Its brand is expected to remain unchanged. Capricorn said the acquisition will add specialist asset finance and non-bank lending capabilities to the group.

“South Africa is an important market in our growth ambitions,” said Capricorn Group chief executive David Nuyoma.

What needs to happen: The transaction is not yet complete. It remains subject to definitive agreements, approval from the Bank of Namibia and the South African Competition Commission, and compliance with applicable Namibia Securities Exchange requirements. Conditions must be fulfilled or waived by 31 January 2027, unless the parties agree otherwise.

The financial backdrop: Capricorn’s profit after tax fell 6.4% to N$1.87 billion in the year to 30 June 2026, from N$1.99 billion. The group cited higher funding costs, impairments and weaker economic conditions in Botswana among the pressures on earnings.