PSG still to build on rocketing success
Group set to explore other growth opportunities beyond its current base to forge ahead in its quest
THE PSG Group has come a long way since it was formed almost 21 years ago. A journey that was started with a market capitalisation of just R7 million in 1995 has grown into a leading investment holding group worth about R55bn today.
However, PSG founder and chairman Jannie Mouton is still not satisfied.
Mouton told clients and guests at the Hilton Hotel in Durban that the group wanted to look beyond its current base which included big companies such as Capitec Bank, Curro Holdings, PSG Konsult, Zeder Investments and Pioneer Foods.
Mouton says this will mean exploring new businesses to grow beyond the current influence it has on companies that have a combined market capitalisation of nearly R160bn.
“An investment of R100 000 with the PSG Group in 1995 would have returned R524m in 2017, and this would beat the JSE All Share Index by a huge gap because an investor would have seen a return of R1.8m in the same period,” Mouton told the gathering, flanked by PSG Konsult chief executive Francois Gouws.
He says the companies that the group invested in have shown tremendous growth and received accolades in the first few years of existence – citing the Capitec ranking as the best bank in the world by the International banking advisory group, Lafferty, as an example.
Capitec quickly followed the award with a top spot in the digital banking category survey conducted by Modern Independent Insights Agency.
The bank, which was built after PSG bought 300 microlending businesses in 1998, has grown to about 796 branches and employs more than 13 000 employees.
Mouton says one of the cornerstones of their success is the belief in hiring the best people for the jobs, and letting them run the organisations is important. “Trust is important. Family and friends are the sole drivers of PSG’S success.”
Mouton has 21 lessons that he learnt in life to run a successful organisation which have been incorporated and adopted by the group. One of the lessons he talks positively about is the belief in the country.
“See the positive side and that includes South Africa. People are always negative and if you are negative about the country you must pack your bags and leave,” he says.
PSG says success has been built in South Africa and is confident about the country’s prospects.
The group says investing money offshore because of the political uncertainty in the country does not mean it is always a right strategy. “People should go offshore for the right reasons not only because of a sudden panic in the market like we saw the rand falling during the Nene-gate in December 2015,” says Mouton, adding the group have also joined other chief executives engaging the government on how to make South Africa an investment-friendly country.
Gouws also says the government and business must unite behind the national development plan as it is a solid plan.
“There are challenges politically at the moment but if we can fix the political climate, the markets can rally very quickly and the rand will also strengthen,” Gouws says.