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Harith General Partners is on the verge of a deal to buy FlySafair, adding a dominant regional carrier to a sprawling infrastructure play aimed at knitting together air, rail and border-crossing capacity across Southern Africa.
The proposed purchase of the airline, which has a 67% market share in South Africa, underlines Harith’s determination to add aviation to its empire.
The deal has been in the making since 2024, when the private equity group walked away after lengthy negotiations for a controlling stake in SAA, the beleaguered flag carrier.
The financial details of the proposed Safair deal were not disclosed, other than that it will be funded with a mixture of equity and debt. Harith is armed with more than $3bn in assets.
The transaction, which is still subject to regulatory approvals, will see FlySafair join Harith’s portfolio, which spans stakes in Lanseria International Airport and Traxtion, Africa’s largest private rail operator, among other assets.
Harith CEO Sipho Makhubela said the proposed acquisition is part of the group’s strategy to transition from simply owning assets to owning the connectivity between them.
Integrated infrastructure
“By integrating a high-performance carrier like FlySafair into a portfolio that already includes Lanseria International, we are able to close the gap between fixed assets and the moving parts that drive regional commerce,” he said.
“This move shares a deliberate DNA with our work in rail through Traxtion’s expansion aligned with South Africa’s freight rail reform trajectory and the modernisation of the Beitbridge Border Post, resulting in increased throughput in the North-South corridor.”
Harith is a major investor in the redevelopment of the Beitbridge Border Post, Southern Africa’s busiest crossing point. The project is being undertaken by the Zimborders consortium, comprising investors including Zimbabwean, South African and international entrepreneurs and financial institutions.
“We are literally investing in the frictionless movement of people and goods required for an impactful nation-building effort and regional economic enablement,” Makhubela said.
Harith chair Tshepo Mahloele is also the chair of Arena Holdings, publisher of Business Day.
A succesful deal will cause FlySafair’s current owners, which include Irish firm ASL Aviation Holdings, to exit the business. However, the airline’s management, which has acquitted itself well in building the airline into a dominant player over the past 12 years, will remain under Harith Aviation ownership.
FlySafair’s ownership came under public scrutiny in 2022 when two industry competitors lodged complaints with the national and international regulatory authorities over ASL Aviation Holdings’ structure.
In establishing Safair in 2014, ASL Aviation Holdings set up a shareholding structure whereby 25% remained in its direct possession and the remaining 75% was held locally through two other shareholders.
The local shareholders consist of the Safair Investment Trust, which holds about 50%, and an employee share scheme designed by ASL Aviation Holdings to ensure compliance with local ownership requirements, with 25%.
In essence, ASL had a 75% exposure to FlySafair, drawing the ire of domestic and international regulators.
South Africa’s current ownership requirements limit foreign ownership to 25%, effectively requiring at least 75% local ownership of any resident airline.
FlySafair said the proposed transaction was not initiated in response to findings by regulators on its ownership structure, which is still subject to an ongoing legal review.
“Transactions of this scale and complexity are typically developed over an extended period and have been under discussion for some time,” it said.
“While the transaction would result in the airline being owned by South African investors, it does not automatically resolve the matters under consideration by the licensing authorities, who will assess the proposed structure in accordance with their statutory mandates.
“The transacting parties respect the independence of those institutions and will continue to engage fully and transparently as required.”
Continental intersection
Since bursting onto the scene in 2014 with just two aircraft operating between Johannesburg and Cape Town, FlySafair now boasts more than 30 jets.
“The real magic happens where these core logistics sectors intersect to drive trade and investment. By linking air and rail with modernised border infrastructure, we are building a continental platform that serves as the backbone for regional industrialisation,” Makhubela said of the proposed transaction.
“We are backing an ecosystem where transport, digital infrastructure, and energy work in tandem to reduce the cost of doing business and unlock hidden economic potential.
“This acquisition deepens that reach, leveraging FlySafair’s operational excellence to accelerate momentum through critical corridors. Ultimately, it’s about ensuring that, whether by air, rail, or road, the path for African economic development and our shared prosperity remains wide open.”
Harith’s energy portfolio includes South Africa’s only privately owned coal-fired power station, Kelvin Power Station.
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