…as members are trained on capital allocation, risk management and long-term wealth creation
Moroke Sekoboto
SEKHAMETSI Investment Consortium (SMIC) has embarked on a drive to strengthen corporate governance by equipping its shareholders with a deeper understanding of how their investments are managed and how they can contribute to the company’s long-term success.
The consortium yesterday hosted a shareholder investment masterclass at Victory Hall under the theme “Understanding Your Investment, Building Our Future”.
The training aimed to enhance shareholders’ knowledge of investment management, governance, sustainable dividends and long-term wealth creation.
The initiative sought to strengthen shareholders’ understanding of the investment holding company model while empowering them to participate more effectively in SMIC’s governance by appreciating the balance between current income needs, capital preservation and sustainable long-term growth.
Speaking at the event, SMIC board chairperson, Thuso Green, said the masterclass was designed to empower shareholders with the knowledge and confidence needed to make informed decisions and contribute meaningfully to the company’s future.
“This shareholders’ training is intended to deepen investment knowledge, strengthen governance and secure sustainable wealth for both current and future generations,” Mr Green said.
“It is designed to empower shareholders with the knowledge and confidence to understand their role, make informed decisions and contribute to sustainable long-term value creation.”
Mr Green said SMIC had grown significantly since its establishment in 1999.
He said the company began with just 30 shareholders and an initial capital base of M5.4 million, but had since expanded to more than 800 shareholders drawn from different socio-economic backgrounds, with an investment portfolio now valued at more than M1.2 billion.
“When Sekhametsi was founded about 30 years ago, a share cost M35. Today that same share is valued at around M15 000, reflecting tremendous growth.
“We have to give shareholders confidence that their money is in safe hands. We have diversified our investments and continue exploring new opportunities. Our portfolio includes investments in Vodacom Lesotho, Letshego Financial Services, Sekhametsi Properties, Afri Expo and Moruo Development, among others,” Mr Green said.
SMIC chief executive, Lethola Mokete, said one of the primary objectives of the training was to help shareholders understand how investment companies differ from ordinary operating businesses.
He explained that while operating companies generate income by buying and selling goods or services, investment companies generated returns through dividends, interest income and capital appreciation from carefully selected investments.
“It is important for our shareholders to understand how we make decisions about allocating their money, where we invest it and why those investments are made,” Mr Mokete said.
“This training will help them ask the right questions during annual general meetings. Our shareholders are also ambassadors of the company, so it is important that they understand our business model and can accurately explain what SMIC does. When they understand that, they become partners in helping us achieve our objectives.”
Mr Mokete said well-informed shareholders also played a critical role in strengthening corporate governance because they elect the company’s board of directors.
“Our shareholders elect the board. When they understand the business, they are better placed to choose directors with the right skills and expertise to lead the company.
“They will also be able to ask relevant questions that contribute to the company’s growth and hold management accountable. When people do not understand the business, they often ask irrelevant questions that derail progress instead of raising issues that could improve the company,” he said.
He said educating shareholders would also make annual general meetings more productive.
“We want our meetings to be value-adding rather than unnecessarily prolonged because shareholders do not understand their roles,” Mr Mokete said.
“Our shareholders are also eligible to serve as directors and to represent Sekhametsi in companies where we have invested. This training prepares them to fulfil those responsibilities with a proper understanding of the business.”
Mr Mokete said the programme would also benefit shareholders personally by helping them distinguish legitimate investment opportunities from fraudulent schemes.
“We want people to understand how genuine investment companies operate so they can easily identify scams that are designed to take their money.
“These forums will help shareholders make better financial decisions in their personal lives and understand the difference between sound investments and quick-money schemes.”
The masterclass was facilitated by Modworld Consulting and covered topics including capital allocation, asset classes, investment expectations, uncertainty, risk management, income generation and long-term asset value growth.