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This black-owned investment fund went big on JoJo Tanks before drought became big business

Timothy Rangongo , Business Insider SA
  • The black-owned Pan African Private Equity (PAPE) Fund Managers bought 23% of JoJo Tanks back in 2012.
  • The country's recurring drought problem makes for a hefty return on investment in water products.
  • Sales of JoJo tanks have surged 500% over the past five years.

While much of the investment community was still clawing their way back from the financial crisis in 2012, the then four-year-old Pan African Private Equity (PAPE) Fund Managers was considering what water scarcity would mean.

That brought it to JoJo Tanks, and a 23% stake in the company that makes the ubiquitous water storage tanks is now a prized holding in its portfolio worth more than R1 billion.

PAPE would not say how much it paid for the shares, and the privately-held Jojo does not disclose enough details to accurately estimate its value. But in the five years to the end of 2016 sales of JoJo tanks increased by more than 500% – and if the company were to list publicly, it is expected to be a hot stock.

The demand for water in South Africa is likely to surge in the next few decades as it will become one of the driest countries in the world by 2025.
Zukisa Kubukeli, CEO and Managing Partner of PAPE Funds


SEE ALSO: SA's richest family is coining it amid the scramble for JoJo tanks

While his fund is making money out of the investment, Kubukeli tells Business Insider South Africa, he does not wish drought on anyone. While there is a drought, though, his fund is proud to help supply the water storage products that can help mitigate its impact.

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