Phembani Group
Phembani Group (also spelled Pembani) is a South African black economic empowerment (BEE) investment holding company, majority-owned and controlled by Phuthuma Nhleko — chairman of MTN Group. It became one of South Africa’s largest black-owned investment groups when it merged with Shanduka Group in August 2015 in a $722 million transaction that included the sale of Cyril Ramaphosa’s entire stake in Shanduka.
Shanduka merger (2015): Ramaphosa had founded Shanduka Group in 2001. After appointment as Deputy President in May 2014, he announced his intention to divest to resolve conflicts of interest — primarily that Shanduka Coal was a coal supplier to Eskom, and Shanduka held stakes in Standard Bank, MTN, and other regulated entities. In May 2015, Ramaphosa’s family trust sold its 29.6% Shanduka stake to Phembani as part of the merger. The South Africa Competition Tribunal approved the large merger with conditions on 19 August 2015. Phembani’s statement confirmed: “Deputy President Cyril Ramaphosa will not have any shareholding or any direct or indirect commercial interests in the group.” Sale price estimated at least 245 million payment for 25% of Shanduka in 2011.
Portfolio: The merged Phembani group held portfolio value R9 billion+, with leading positions in natural resources, infrastructure and industrials. Key assets acquired from Shanduka: Engen (petroleum retail), AfriSam (cement), Shanduka Resources (coal mining), Standard Bank stake, Liberty Group stake, McDonald’s South Africa franchise (70%), Coca-Cola bottling plants (70%), Glencore coal joint venture.
Paradise Papers (2017): In November 2017, Shanduka — now within Phembani — was implicated in the Paradise Papers for using Investec and a Mauritius entity to avoid taxes on profits from a Mozambique energy deal. Phembani stated the relevant MTN Nigeria stake was not acquired from Shanduka.
The Shanduka/Phembani transaction is relevant to the state capture narrative because it resolved a documented conflict of interest (Shanduka Coal → Eskom coal contracts) that would have been acute during the Gupta-influenced Eskom capture period 2014–2018. The Zondo Commission (Vol 4) separately documented Eskom Tegeta coal contract irregularities. Ramaphosa’s Shanduka stake in Optimum Coal (a Glencore-linked mine later at the centre of Tegeta/Gupta controversy) made the divestment time-sensitive.
Connections
- Shanduka Group — merged into Phembani August 2015; all Shanduka assets transferred
- Cyril Ramaphosa — sold 29.6% Shanduka stake as part of merger; no remaining interest after August 2015
- Eskom — Shanduka Coal was an Eskom coal supplier; conflict-of-interest resolved by divestment
- Zondo Commission — Vol 4 documented Eskom coal contract irregularities in same period; Ramaphosa’s divestment predated by the Tegeta controversy