Lonhro embarks on African expansion trail

Lonhro’s African logistics subsidiaries – including Johannesburg-based Rollex, and its Fly540 aviation company – will be given a boost by the company’s plans to expand its African operations. This follows the listing of the British holding company on the main board of the London Stock Exchange – it has been listed on the British Alternative Investment Market (AIM), with a secondary listing on the Venture Capital Market of the Johannesburg Securities Exchange (JSE) since February 2001. Described in its prospectus as being “exclusively focused on the growth of Africa”, it has moved it shares to the main board of the London Stock Exchange because of the company’s confidence in the future of the continent. The group operates across five sectors – agribusiness, infrastructure, transportation, hotels and support services. Expansion of the agribusiness will create opportunities for Rollex, which handles Lonrho’s logistics for its Southern African agribusiness interests. This could provide Rollex with the critical mass to expand, and to start competing for business outside of Lonrho. The company also plans to increase capacity – and competition – in the airfreight sector by growing its Fly540 aviation business into “a pan-Continental airline which operates only in Africa”, according to the prospectus. There will also be stronger competition for the support of West Africa’s oil sector. Lonrho plans to provide a “one stop shop” for the oil industry in the Luba Freeport on the island of Bioko in Equatorial Guinea.