Kholo Capital Invests R200 Million in Bayport SA to Scale Financial Wellness

The investment was supported by leading legal advisory firms, with Norton Rose Fulbright acting on behalf of Kholo Capital and Werksmans Attorneys representing Bayport SA.

 

In a major boost for South Africa’s financial wellness and impact investment landscape, Kholo Capital Mezzanine Debt Fund I has announced a R200 million mezzanine debt growth facility into Bayport Securitisation (Bayport SA). The funding is earmarked to accelerate the Bayport SA Financial Wellness Solutions Programme, a transformative initiative that tackles the country’s pervasive issue of employee over-indebtedness through tailored, tech-enabled financial rehabilitation and education.

This significant investment highlights Kholo Capital’s commitment to environmental, social, and governance (ESG)-aligned funding and underscores the pivotal role of the private sector in advancing financial inclusion and economic resilience in South Africa.

Empowering Employees Through Debt Relief and Financial Education

Bayport SA’s Financial Wellness Programme is designed to deliver structured debt management, settlement negotiations, and financial literacy support to employees grappling with unmanageable debt. The initiative directly addresses the fact that over 60% of employed South Africans are over-indebted, with only 14% of the population able to afford retirement. Shockingly, 74% of average income is spent on debt repayments, while nearly half of all borrowers are behind on at least one loan.

Bayport’s approach is uniquely impactful: it negotiates settlement discounts with creditors—ranging from 25% to 80%—and passes 100% of these savings directly to the employee. This helps them reduce total debt burdens and monthly repayments while improving credit scores and restoring financial stability.

A 10-Week Financial Transformation Journey

Delivered in partnership with over 70 employers across sectors—including mining, FMCG, government, telecom, and finance—the Bayport SA Financial Wellness Programme guides participants through a 10-week journey combining immediate debt relief with long-term behavioural change.

The programme includes:

• Personal financial health assessments

• One-on-one coaching with professional money mentors

• Gamified mobile apps for tracking goals and accessing resources

• Peer-led group sessions to foster accountability

• Access to the Bayport Academy, offering structured workshops and e-learning

• Responsible emergency credit options as an alternative to payday loans

The outcomes are transformative. On average, participating employees experience a monthly disposable income increase of R7,450, equivalent to 32.8% of the average basic salary (R22,865). This increased cash flow significantly improves well-being, productivity, and household financial resilience.

Strategic Support from Kholo Capital

Kholo Capital, a purpose-driven investment fund, has recognized Bayport SA’s model as a high-impact, commercially sustainable solution to one of South Africa’s most urgent socioeconomic issues.

“Bayport SA provides significant debt relief to over-indebted employees. The positive ESG and social impact on South African society is substantial,” said Mokgome Mogoba, Managing Partner at Kholo Capital. “This investment achieves financial inclusion, debt reduction, and economic stability.”

Zaheer Cassim, also a Managing Partner at Kholo Capital, added:

“Bayport SA’s securitisation programme is among the most robust in the country. It remained resilient through the COVID-19 pandemic without any payment defaults or covenant breaches, supported by institutional investors and South African banks. We’re proud to back this first-class management team.”

Kholo’s funding will help scale Bayport’s reach to thousands more employees, while reinforcing investor confidence in responsible credit innovation.

Bayport SA’s Vision for a Financially Resilient Workforce

Alfred Ramosedi, Chief Executive Officer of Bayport SA, celebrated the partnership with Kholo Capital as a key step in expanding the programme’s reach and social impact:

“This funding will enable us to deepen our footprint across South Africa—empowering more citizens to escape debt and build financially resilient futures. We’re proud to align with Kholo Capital’s impact investment values in driving meaningful financial change.”

Bayport SA is already working with blue-chip companies and government institutions to roll out its solutions, and this funding will further unlock opportunities for underserved communities and workforce segments.

Legal and Transactional Support

The investment was supported by leading legal advisory firms, with Norton Rose Fulbright acting on behalf of Kholo Capital and Werksmans Attorneys representing Bayport SA.

Broader Economic Implications

As South Africa battles the long-term effects of household debt, lack of retirement readiness, and low financial literacy, initiatives like Bayport SA’s wellness programme offer a blueprint for scalable, measurable social impact. The model aligns with national development goals and addresses the intersection of employee well-being, economic productivity, and financial sector transformation.

This R200 million injection from Kholo Capital not only strengthens Bayport’s ability to scale but also sends a strong signal to investors, employers, and policymakers about the value of inclusive finance solutions in building a more stable, prosperous South Africa.