RMB Ventures announces investment in Mafika Engineering

MEDIA RELEASE

15 MAY 2023

RMB Ventures announces strategic equity investment in leading mining services company Mafika Engineering

In one of their largest private equity investments to date, RMB Ventures has purchased a 45% stake in Mafika Engineering, Africa’s largest independent rebuilder of high horsepower (HHP) diesel engines used in the mining industry. RMB Ventures is investing alongside the existing management team that have delivered impressive growth over the past 20 years.

Mafika Engineering recently opened their new state-of-the-art rebuild centre where they have already established themselves as a leading HHP engine remanufacturer and one of the few OEM agnostic HHP engine rebuilders in the world. Mafika Engineering preforms “Zero-Hour” rebuilds (returned to new) of HHP and ultra-HHP engines used in high value front-line mining equipment such as ultra-class haul trucks, dozers and excavators. These machines are fundamental drivers of mine efficiency and profitability.

Says Amina Pahad, senior transactor at RMB Ventures: “We are proud to be partnering with a homegrown South African business that provides a world class service to some of the largest mining houses on the continent and around the globe. RMB Ventures will help instill the appropriate systems, processes and funding to position the business for further growth without losing the flexibility and responsiveness so important in servicing its customers.”

Through remanufacturing mission critical engines for its customers, Mafika Engineering allows its customers to participate more fully in the circular economy. Remanufacturing offers mining houses an opportunity to recycle existing resources, restoring the efficiency and output of their equipment at a lower price for OEM-comparable quality. Furthermore, Mafika is well positioned to offset the long equipment lead times and costs of downtime experienced by mining companies around the world.  

Globally, remanufacturing has been receiving growing attention and the heavy machinery industry strives to not only extend the life of high value mining assets, but also reduce waste and emissions. The environmental benefits of sustainable remanufacturing are numerous, including reduced consumption of raw materials, reduced energy consumption during the remanufacturing process and significantly reduced waste sent to landfills.

There is also a positive impact on power consumption. Studies show that rebuilt engines need 50% less energy to produce compared to a new engine, with annual energy savings by remanufacturing worldwide equal to the electricity generated by five nuclear power plants or 10.7m barrels of crude oil. 

“Our consistent delivery of quality certified engine rebuilds and world class service have established us as a well-known, reliable service provider and allowed us to grow rapidly over the past decade. RMB Ventures is a great fit due to their skill in supporting businesses through significant growth phases, while retaining the entrepreneurial business’s unique culture and flexibility,” says Graydon Epstein of Mafika Engineering. In addition to this, having a partner within the FirstRand Group allows us to gain access to broader networks within the mining sector and further accelerate our growth aspirations.”

Concludes Pahad: “RMB Ventures’ will work with Mafika’s management team to build the foundation to support a different scale of operations and help Mafika Engineering reach its full potential.”

End

Contact:

Joandra Griesel l RMB l Joandra.griesel@rmb.co.za