ANALYSE THIS: Absa Wealth & Investment Management's Godfrey Mwanza
We analyse Godfrey Mwanza, head of pan-Africa listed equities at Absa Wealth & Investment Management.
If someone came to you tomorrow with R100m to invest in just one company, which would it be?
Kenya Electricity Generating Company. It uses steam produced from reservoirs of hot water found below the earth’s surface in the Great Rift Valley to produce electricity. Kenya operates the world’s sixth-largest geothermal fleet and by 2023 it will be the world’s number one producer by installed capacity, surpassing the US and Japan. Despite the company rallying 59% in the year to date, the market is still undervaluing that growth. We expect its earnings before interest, tax, depreciation and amortisation to increase threefold in the next six years, but the stock is selling at only five times the expected 2017 earnings. We think that’s largely because of very little analyst coverage. It is a hidden African gem.
Which talent would you most like to have?
Speed-reading. My curiosity outweighs my free time.
What was your first job?
I worked as a cashier at the first Steers, Debonairs and Blockbusters outlet in Lusaka, Zambia.
How much was your first pay cheque and what did you do with it?
I gave my first pay cheque to my parents. I cannot remember the amount. It’s a cultural gesture that’s supposed to be a symbol of appreciation for all their love and sacrifice in raising you. I got it back, of course, but I don’t remember what I spent it on.
If you could turn back time, what would you change in your life?
"Regrets, I’ve had a few. But then again, too few to mention." — Frank Sinatra
If you could fix one thing in SA today, what would it be?
I would erase the idea from everyone’s mind that there is such a thing as race, or tribe for that matter. There are just people. And we can do such amazing things if we really get that and work together.
What’s your favourite song?
I love everything, from Bach to Biggie Smalls. It’s impossible to pick one, or even 10 favourite songs. I have 20-month-old twin daughters and they’re just learning to speak and sing. "Twinkle, Twinkle Little Star" is their favourite and one of them has perfect timing and melody. It brings me so much joy when they "sing" it, that it sticks in my head. So if I had to pick one song that is my favourite for now, I would choose that one.
Name a place you’ve been to that lived up to the hype.
What is your greatest extravagance?
I am not a very extravagant person at all, but I probably spend too much money on champagne.
What was your last purchase?
Wonton soup from my local Chinese takeaway.