SA today faces a complex dual challenge: reigniting growth while addressing deep structural inequalities. For those of us entrusted with stewarding capital on behalf of pensioners, workers, and future generations, this is both a responsibility and an opportunity.
As private equity investors, we know that this asset class is uniquely placed to drive real economic change. The philosophy is simple: back resilient businesses that create sustainable value, while also strengthening the country’s social and economic fabric.
The strong support of investors underscores a shared conviction: private equity can build SA, deal by deal, and in doing so, contribute directly to the B20 global agenda of inclusive, sustainable growth and enterprise development.
Investing in sectors that matter
Beyond the strategic lens, private equity is ultimately measured by disciplined capital allocation and returns.
The focus should be on companies, where demand is structural, not cyclical. Education is one such sector — SA’s education sector is chronically undersupplied. Demand for tertiary education far outstrips available capacity, and too many young people leave school with limited opportunities for further training. Online and distance learning hold significant opportunity to amplify access for more young South Africans. Private equity can accelerate unlocking this growth.
For example, Sanlam Private Equity recently acquired a significant stake in Boston City Campus, a leading private higher education provider with over 47 support centres nationwide.
This strategic partnership is rooted in a shared ambition to bridge the accessibility gap in higher education, particularly for SA’s vast number of high school graduates who don’t qualify for full government funding or cannot access traditional, high-cost tertiary institutions. The commitment is about more than returns; it is about equipping South Africans with the skills to participate in a modern economy.
This is precisely the kind of human capital investment highlighted by B20’s Education and Employment Task Force, which has called for greater private sector participation in expanding affordable education pathways, digital literacy, and youth employability.
Focus areas for private equity funds should match the priorities of our government’s economic reform programmes, healthcare, financial services, and sectors with the potential to create jobs, enhance resilience, drive inclusion and deliver essential services.
At its best, private equity is about building. Building companies, building industries. Each deal is a brick in a larger edifice: a more resilient, inclusive, and prosperous economy.
The B20 financial inclusion and sustainability task forces also reinforced that responsible investment and inclusive finance are not mutually exclusive, they are interdependent levers for long-term competitiveness and societal progress.
Partnering for growth, not extraction
Private equity is sometimes accused of short-termism: buying cheaply, cutting costs, and selling quickly. And fundraising for private equity in SA is no simple feat. Most of our limited partners are local pension funds, and their investment cycles must be respected. Recycling of capital, regulatory considerations and the macroeconomic environment can all slow the pace.
Despite the challenges, the need is unequivocal: SA needs growth. We need jobs, but jobs that are future-proof. We need investment, but investment that builds rather than extracts. Private equity can provide the answer.
Private equity can help formalise, professionalise and scale mid-market companies, the backbone of our economy. This creates better-run businesses with strong governance structures, stronger supply chains, and more inclusive employment. It also fosters innovation in sectors like healthcare, technology and education.
SA needs growth. We need jobs, but jobs that are future-proof. We need investment, but investment that builds rather than extracts. Private equity can provide the answer
— Paul Moeketsi, managing partner: Sanlam Private Equity
Critically, private equity also supports transformation, which is a non-negotiable in our country. Inclusion and transformation are not compliance exercises; they are a competitive advantage and a moral imperative. Through investments, we can broaden ownership, develop black executives, and open doors for entrepreneurs who might otherwise struggle to access growth capital.
This approach aligns directly with the B20’s emphasis on sustainable financing models that enable small and medium enterprises, particularly those led by women and youth, to access capital and integrate into regional and global value chains.
Lessons along the way
A disciplined approach, blending operational value creation, sector diversification, and carefully timed exits, can deliver both sustainable impact and robust internal rates of return to our investors. Taking a long-term, partnership-driven approach is the stewardship pension fund investors expect. After all, the capital we manage comes from the savings of the underserved, so it should benefit them.
Finally, private equity is patient capital. Building SA requires exactly that: patience, resilience and partnership.
We see no shortage of opportunities: SA does not lack entrepreneurs, nor ambition. If we keep aligning capital with purpose, private equity investments can be a quiet architect of the country’s renewal.
As SA prepares to host the G20 Leaders’ Summit and B20 Summit in November, it is critical that the global conversations at these events underscores one message: that Africa’s growth story must be co-authored by its investors. Private equity, guided by purpose and partnership, can help script that future.
Click here to download a copy of the 2025 Sanlam ESG Barometer: B20 Policy Impact Special Report.
This article was sponsored by Sanlam.
