• Harith General Partners agreed to buy low-cost airline FlySafair

• Deal worth ~15% of Harith’s portfolio, subject to regulatory approval

• Acquisition helps meet South African ownership rules and boosts expansion

South African private equity firm Harith General Partners announced on Tuesday, Feb. 10, that it has reached an agreement to acquire local low-cost carrier FlySafair.

“Harith and its affiliates have entered into a Sale and Purchase Agreement to acquire FlySafair, one of South Africa’s most successful and fastest-growing airlines,” the company said. It added that the proposed investment reflects its confidence in FlySafair’s proven operating model, strong management team and long-term growth prospects.

The statement did not disclose financial details of the transaction. However, Tshepo Mahloele, the firm’s chairman, said the deal will represent about 15% of the firm’s overall portfolio and will be funded through a combination of equity and debt, according to remarks reported by Bloomberg. He added that Harith plans to support the airline’s regional expansion. While South Africa remains FlySafair’s core market and a central pillar of its strategy, the firm believes its model can also compete at a regional level.

The transaction remains subject to customary regulatory approvals, including clearance from the Competition Commission. The deal comes as current FlySafair shareholders seek to exit following a funding round that had been under consideration for several years. It also follows regulatory pressure to comply with South African ownership rules.

In 2024, the Domestic Air Services Council found that the airline was in breach of regulations because trusts and companies held 75% of its voting rights. The ruling followed an appeal filed by local competitor Lift Airline. ASL Aviation Holdings, an Ireland-based company owned by London-based private equity firm Star Capital Partners, holds a stake in Safair Operations, FlySafair’s parent company.

Founded in 2014 in South Africa’s highly competitive aviation market, FlySafair reached profitability within two years. It currently operates 10 domestic routes and five regional services. The deal is expected to strengthen Harith General Partners’ presence in Africa’s transport sector. The firm manages $3 billion in assets and specializes in infrastructure investment across the continent. Its portfolio includes stakes in 14 companies operating in the energy, transport, digital infrastructure, healthcare and water sectors across nine African countries, including Kenya, Ghana, Nigeria and Mauritius.