Another deal

Faranani Risk Solutions an insurance broking and risk management company providing solutions to over 60% of all municipalities in South Africa, has announced the sale of 20% of its business to a new black economic empowerment (BEE) partner, Vukani Mafrika

Alexander Forbes Risk Services, a 45% shareholder in Faranani Risk Solutions, will continue to provide technical expertise to the company.

Jointly, Alexander Forbes and Vukani Mafrika Investment Consortium have a 65% shareholding in Faranani Risk Soltuions.

The company’s management and employees own 10% equity, and the remaining 25% is held by the Faranani Foundation for Local Government Professional Development.

Following the deal, Faranani Risk Solutions will now effectively be a majority black-owned and managed company.

Head of Vukani Mafrika Investments and prominent South African businessman, Don Mkhwanazi, said this deal is considered to be an important development for black participants in the financial services sector.

“Providing risk management solutions to local government is a niche and focused market within the financial services sector and Vukani Mafrika understands the need for the full development of local communities,” Mkhwanazi said.