Shanduka Group
Shanduka Group was a South African black economic empowerment (BEE) investment holding company founded in 2001 by Cyril Ramaphosa. The name means “change” in Ramaphosa’s native Venda language. It became one of South Africa’s most prominent BEE vehicles, building a diversified portfolio across resources, telecommunications, food and beverages, financial services, property, and energy. By 2014, the group was valued at over R20 billion. Notable holdings included stakes in MTN Group, Coca-Cola South Africa, McDonald’s South Africa, Standard Bank, Lonmin, Seacom, Alexander Forbes, Bidvest and others. In December 2011, China Investment Corporation (China’s sovereign wealth fund) acquired a 25% stake for approximately $243 million.
When Ramaphosa was elected ANC Deputy President in December 2012, he began divesting from business interests to remove conflicts of interest. In June 2015, following a merger transaction, Shanduka was absorbed into Phembani Group, with Ramaphosa earning an estimated $200 million+ from the sale. His family trust (Tshivhase Trust) reportedly retained a shareholding in the merged entity.
In November 2017, Shanduka Group was named in the Paradise Papers — the global leak of offshore financial records — as one of a small number of South African companies that allegedly worked with Investec to dodge taxes on profits from a Mozambique energy deal by routing money through Mauritius.
Connections
- Cyril Ramaphosa — founder and controlling shareholder; divested 2015 to avoid conflicts of interest with Deputy Presidency
- Phembani Group — Shanduka merged into Phembani in June 2015
- China Investment Corporation — 25% shareholder, $243m investment (December 2011)
- MTN Group — Shanduka held stake; Ramaphosa was MTN board chairman
- Lonmin — Shanduka held stake; Ramaphosa was on board during 2012 Marikana massacre (controversial)
- Investec — allegedly facilitated offshore tax structure (Paradise Papers, 2017)
- Zondo Commission — DA raised Shanduka coal interests at Eskom as conflict of interest when Ramaphosa chaired Eskom war room (Dec 2014); Presidency confirmed divestment had already occurred (May 2015)
- Eskom — Shanduka Group held coal supply interests at Eskom; raised as potential conflict when Ramaphosa led Eskom revival as Deputy President