25% Interest in Innovation Group SA

High potential for investments in Africa
2016-10-20

25% Interest in Innovation Group SA

According to CEO Tshego Sefolo, “it prefers to invest in companies operating in automotive, operational services, for example, specialised security, cleaning, laundry, hygiene, pest control and fumigation, manufacturing, financial services, and mining and resources.”

Zico Capital (Pty) Ltd (“Zico Capital”), a Johannesburg based investment company, has acquired a 25% interest in Innovation Group SA, a leading provider of outsourced solutions. The business is a subsidiary of UK-listed multinational The Innovation Group plc (LSE: TIG.L).

The Innovation Group is a global provider of business process outsourcing and software solutions to the insurance, fleet, automotive and property industries. “As an established subsidiary of The Innovation Group, Innovation Group SA offers an excellent investment opportunity. We have seen significant growth in the business process outsourcing environment globally and in South Africa, driven by the need to maintain and control costs by major clients,” says Chief Executive Officer, Tshego Sefolo.

Innovation Group SA renders all of its operations from Johannesburg and has established a wide customer base spanning across different markets. Customers include motor manufacturers; blue chip finance institutions; motor dealerships; insurers and brokers; and manufacturers of electronic goods and appliances. “The performance of Innovation Group SA must be viewed in the context of the markets in which it exists and operates.

We believe that there will be a continued increase in cost-effective business process outsourcing in these markets, which will drive growth and returns for Innovation Group SA as it offers clients innovative and efficient solutions,” says Sefolo.

“Africa is Open for Business”

This is the strong message the continent has been sending to the world for quite some time now, despite an ongoing climate of many associated risks and challenges. The many boom towns springing up from Nigeria to the Congo are testament to Africa’s growing urbanisation in resource-rich areas.

Demand for food through air-conditioners is being driven by development. However, development requires integrated growth on many fronts: economic, political, scientific and technological. This is the challenge that most African countries are facing, including the region’s largest growing economy, Nigeria.