Psitek South Africa has a new shareholder and empowerment partner, Regiments Capital. Integral to this development is the appointment of Litha Nyhonyha, Executive Chair and founder member of Regiments to the Board of Psitek South Africa.
Psitek South Africa is a subsidiary of Psitek (Pty) Ltd whose core business is to develop solutions using cellular technology in order to give communications access to people in previously under- serviced areas of the world. It is currently operating in Africa, Asia Pacific, the Middle East and Latin America. With 17 years of experience in previously under-serviced markets, Psitek has built up an in-depth understanding of these market conditions and needs.
The fact that Psitek uses technology to provide problem-solving solutions fits in well with the business model of financial services group, Regiments.
“We believe that our financial approach and Psitek’s technological solutions complement one another,” Nyhonyha says.
“We expect this new strategic partnership to add value to our investment portfolio focusing on the IT, telecommunications and health care sectors,” he explains.
Regiments Capital is a Black-owned investment banking boutique, which deals in specialist fund management and proprietary investment, as well as in a general financial advisory capacity. It was founded by Litha Nyhonyha, in conjunction with five other investment bankers, in 2004.
“We look forward to benefiting from Litha’s personal knowledge, experience and skills that we believe will be invaluable in helping Psitek South Africa grow its business,” Ian Harrison, MD of Psitek, comments. “As Regiments’ financial services perspective is different from Psitek’s technological perspective, we expect Regiments’ financial insights into the South African market to add value to Psitek.”
With a strong product development capability, Psitek is focusing on creating additional growth revenue streams from recurring-revenue business models in addition to the company’s traditional business. Existing products and solutions will continue to form a key component of the business along with new products and solutions developed specifically for the new recurring-revenue business.
Psitek made its name in the mid-90s with the entry of mobile network operators into South Africa when it recognised a market opportunity in the form of Supervised Payphones solutions. Its flagship payphone products Adondo and Jembi have set standards in this segment.
More recently, Psitek has entered the content and data service market, a step that has had ground-breaking implications for the company. It has since evolved from its initial focus on voice only to its current focus on both voice and data solutions. It is currently launching Kazang, an end-to-end solution aimed at taking content and data services to the South African market.
Kazang provides quick and convenient access to prepaid services. While it is currently offering electronic airtime recharge, it will in the near future roll out access to other prepaid services, such as electricity recharge, short-term insurance and legal services.
Kazang is set to make an impressive footprint in South Africa’s under-serviced areas over the next months. This will render it a highly desirable delivery channel for content and service providers that have not previously been able to directly reach this market. Psitek South Africa is in negotiations with a number of companies to drive the roll out of these services.
“Strategic business partnerships, together with strong and valued customer relationships have always been an integral part of Psitek’s way of doing business. Kazang will most definitely be implemented in keeping with this approach and will be become a vital part of our long term vision,” says Harrison.