The imminent sale of Sun Air has brought together many black businesses. Stuart Hess looks at who is bidding
BLACK economic empowerment is taking to the skies in more ways than one. Four consortiums headed by black businesses comprise half the companies bidding for Sun Air, the next parastatal up for sale.
Tenders for the bid were presented this week, following which a shortlist of three will be announced. The sale of Sun Air is expected to be completed by the end of July.
Here is a guide to South Africa’s potential black air-barons, including business people, civic associations and trade unions.
RETHLABILE CONSORTIUM
Moss Ngwenya, CEO for the Rethlabile Consortium, says South Africa needs a small black-controlled airline, in much the same way Richard Branson runs Virgin Airlines in the United Kingdom.
“We foresee the airline assisting black business and allied business on the ground,” says Ngwenya.
The Rethlabile Consortium consists of five groups from the travel and leisure sector, including Rethlabile Leisure and Tourism. The latter has an 80% stake in the consortium.
Ngwenya, also the vice-chairman of the Tourism Business Council, says the consortium saw the need to expand the company “and not only in the tourism industry. Traditionally blacks were outside the tourism industry. So we need an airline as a support system.”
South Africa’s past meant there was a “big”, untapped black tourism market and Rethlabile is looking to fill this gap, says Ngwenya.
PHOENIX VENTURE PARTNERS
Jethro Mbau, of the Phoenix Venture Partners bidding consortium, says his group wants to spread regional wings. “We see it as an opportunity to expand to other SADC [Southern African Development Community] countries,” says Mbau, who is acting as the consortium’s financial adviser and fund- raiser.
But Phoenix will face tough competition from South African Airways (SAA) should it succeed. SAA has an impressive Southern African route network.
The Phoenix group comprises, among others: the Women Investment Portfolio; the Tubeni group, a black investment group in Gauteng; Phezulu, a group including the National Council of Trade Unions; and Khanyisa Investment, a holding group from the Eastern Cape which also owns Umoya radio station.
Mbau says the group would rely heavily on the present management to assist them with changes to the company. The consortium is funded by two local investment bankers and an international funder.
UKHOZI SANCO CONSORTIUM
Eugene Ruiters, who is jointly heading the Ukhozi Sanco Consortium’s bid, believes Sun Air offers the South African National Civic Organisation (Sanco) and black entrepreneurs a “good opportunity to get into the industry”.
The consortium includes: Sanco Investment Holdings, the investment arm of Sanco, and a group of black businesses under the banner of Ukhozi. “We believe we have all the ingredients to put forward an excellent bid,” says Ruiters.
The consortium is looking at various options including a possible amalgamation with an international group.
MARU INVESTMENT HOLDING
Maru appears the least confident of all the bidders. The group, which comprises professionals – including doctors and lawyers – is perhaps the most reticent about its plans.
The consortium is based in the North-West province, the same area as Sun Air, which was the airline of the former Bophuthatswana homeland.
Maru’s representative, Thomas Ngoloyi, says the group is an evolving consortium and is probably “the weakest of the eight consortiums” bidding for the airline.
“It is difficult getting people behind the bid,” says Ngoloyi. “Blacks from poor backgrounds are not used to bids of this nature.