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South African billionaire Tshepo Mahloele is a step closer to taking control of South Africa’s largest domestic airline after the country’s Competition Commission recommended approval of Harith Aviation’s acquisition of Safair Holdings, the parent company of FlySafair.
The proposed deal, which still requires approval from the Competition Tribunal, would expand Harith General Partners’ transport investments and strengthen its position as one of Africa’s leading infrastructure investors.
Harith General Partners, co-founded and chaired by Mr Mahloele, manages infrastructure assets worth more than $3 billion (about KSh390 billion). The investment firm has built a strong presence across Africa through investments in transport, energy, telecommunications, logistics and social infrastructure.
The Competition Commission said it had recommended the merger subject to conditions aimed at protecting competition in South Africa’s aviation industry.
Its main concern was that Harith already owns a significant stake in Lanseria International Airport, South Africa’s only privately owned international airport. Regulators feared that ownership of both the airport and FlySafair could give the airline preferential treatment over rival carriers.
To address these concerns, Harith has committed to creating strict information barriers between the airport and airline businesses. It has also agreed to ensure that Lanseria provides airport facilities and services to all airlines on fair, reasonable and non-discriminatory terms.
If approved, the acquisition will bring together one of South Africa’s busiest low-cost airlines with an investor that already has interests in airports and rail transport.
FlySafair has become South Africa’s dominant domestic airline after the collapse of Comair, which operated the British Airways franchise and Kulula.com, and the suspension of operations by state-owned Mango Airlines. The airline now carries the largest share of domestic passengers and has expanded its regional network to destinations including Zimbabwe, Mauritius, Namibia and Zanzibar.
The proposed acquisition also follows years of regulatory scrutiny over FlySafair’s ownership structure. South African aviation law requires at least 75 per cent of the voting rights in a domestic airline to be held by South African citizens. Questions had previously been raised over the airline’s compliance because of foreign ownership interests. The takeover by Harith, a South African investment firm, is expected to align the airline more closely with the country’s ownership requirements.
For Harith, the deal represents another step in building an integrated transport infrastructure platform across Africa. Besides its stake in Lanseria International Airport, the firm has investments in rail operator Traxtion and other transport-related businesses.
The company has also invested in major infrastructure projects across the continent through funds such as the Pan African Infrastructure Development Fund (PAIDF), which finances transport, energy, water and telecommunications projects. Its investments span several African markets, including South Africa, Kenya, Nigeria, Ghana, Zambia and Côte d’Ivoire.
Infrastructure investment has become increasingly important as African governments seek private capital to bridge the continent’s infrastructure financing gap. According to the African Development Bank, Africa requires between $130 billion and $170 billion (about KSh16.9 trillion to KSh22.1 trillion) annually for infrastructure development, yet faces a financing gap of up to $108 billion each year.
Industry analysts say combining airport infrastructure with airline operations could create operational efficiencies and improve passenger services, provided competition safeguards are maintained. The Competition Commission’s conditions are therefore intended to ensure that competing airlines continue to enjoy equal access to airport facilities and services.
The transaction also comes as South Africa’s aviation industry continues to recover from the disruption caused by the Covid-19 pandemic. Domestic passenger demand has rebounded strongly, supported by increased leisure and business travel, while low-cost carriers have gained market share as travellers seek affordable fares.
If the Competition Tribunal grants final approval, the acquisition will rank among the most significant private investments in South Africa’s aviation sector in recent years. It will also reinforce Mr Mahloele’s strategy of building a diversified transport portfolio spanning airports, rail and aviation, while positioning Harith to benefit from growing demand for air travel and infrastructure across the continent.
By:Christopher Ouma Ochieng
