Re-engineering Growth for Mafika

The challenge

Mafika Engineering is Africa’s largest independent rebuilder of High Horsepower (HHP) diesel engines used in the mining industry. They recently opened a new state-of-the-art rebuild centre where they will continue to work as a leading HHP engine remanufacturer and one of only a few OEM agnostic HHP engine rebuilders in the world.

Mafika Engineering performs “Zero-Hour” rebuilds (returned to new) of HHP and ultra-HHP engines used in high value front-line mining equipment such as ultra-class haul trucks, dozers and excavators. These machines are fundamental drivers of mine efficiency and profitability.

Mafika is a homegrown South African business that provides a world-class service to some of the largest mining houses on the continent and around the globe. Through remanufacturing mission critical engines for its customers, Mafika Engineering enables its customers to participate more fully in the circular economy. Remanufacturing offers mining houses an opportunity to recycle existing resources, restoring the efficiency and output of their equipment at a lower price for OEM-comparable quality. Furthermore, Mafika is well positioned to offset the long equipment lead times and downtime costs experienced by mining companies around the world. 

Globally, remanufacturing has been receiving growing attention. The heavy machinery industry strives to not only extend the life of high value mining assets, but also to reduce waste and emissions. The environmental benefits of sustainable remanufacturing are numerous, including reduced consumption of raw materials, reduced energy consumption during the remanufacturing process and significantly reduced waste sent to landfills.

There is also a positive impact on power consumption. Studies show that rebuilt engines need 50% less energy to produce compared to a new engine, with annual energy savings by remanufacturing world-wide equal to the electricity generated by five nuclear power plants or 10.7m barrels of crude oil.

As Mafika’s world-class service and capabilities have become more widely recognised, it has been receiving increasing interest from large mining houses and needed to scale to take advantage of a range of exciting growth opportunities.

The RMB solution

In one of their largest private equity investments to date, RMB Ventures purchased a 45% stake in Mafika Engineering. RMB Ventures has invested alongside the existing management team that have delivered impressive growth over the past 20 years.

In addition to the equity investment, RMB Ventures will help instill the appropriate systems, processes and funding to position the business for further growth, without losing the flexibility and responsiveness that is vital in servicing its customers.

According to Graydon Epstein of Mafika Engineering, RMB Ventures is a great fit due to their skill in supporting businesses through significant growth phases, while retaining the entrepreneurial business’s unique culture and flexibility. In addition to this, having a partner within the FirstRand Group allows Mafika to gain access to broader networks within the mining sector and further accelerate its growth aspirations.

RMB Ventures will work with Mafika’s management team to build the foundation to support a different scale of operations and help Mafika Engineering reach its full potential.