The South African who went from being a security guard to managing over R7 billion

Speaking with Stephen Grootes at the Money Show, Mnguni said he grew up in a Sebokeng squatter camp south of Johannesburg.

“However, during the riots, my parents sent us to the Free State to attend school. That decision was significant in changing my fortune compared to the friends who remained behind,” Mnguni explained. 

At a small farm school near Kroonstad, two teachers saw his potential and instilled in him confidence and a love for learning, particularly mathematics. 

“Right up to matric, I was always at the top of my class. The potential was there, but the money wasn’t.”

He said he took a liking to the stock market when he was about 17. His father, a truck driver, was a keen horse racing gambler who bought a newspaper daily to get the race results, which allowed Mnguni junior to read the business pages.

“My father is a proper horse racing gambling addict. He still gambles on the horses to this day. He had heated debates with my mom because he often gambled his salary away,” Mnguni said.

He said he didn’t follow in his father’s footsteps, because of the pain it caused his family. Without funds to study further, Mnguni decided to work.

“My first job was digging trenches to pipe water,” he recalled. He used that money to pay for training at a security academy, and soon after, secured a job as a guard. 

“I didn’t have money to study, so I worked as a security guard for Alpha Ready Mix, Nampak and Sasol. I was encouraged by a family friend who suggested I become a security guard because the job offered predictable income,” he added.

Hard work paid off

“Every month, I saved money. I started with R50 and eventually built up about R60,000.” With the money he saved, he registered as a student at Rand Afrikaans University (Rau), known today as the University of Johannesburg, for a commerce degree.

Entering as a 23-year-old former guard among younger classmates from more privileged backgrounds, Mnguni found his working life gave him an edge.

“That experience was my advantage. I was focused. I knew what it had taken to get there.” His academic performance quickly drew attention, and bursaries and scholarships soon covered his studies. 

“I was very privileged to be supported by Deloitte, Ernst & Young, and professors who believed in me.”

An internship through the Inroads program opened the door to financial services. He began at Kaye’s Asset Management before moving to Allan Gray, where he was mentored by the late Simon Marais and other industry leaders. 

“It was a huge privilege to be developed by such people and to build skill,” he said. But as his career progressed, he began questioning what his generation was doing for the next. 

He later joined Stanlib as an equity analyst focused on telecommunications and technology. He then managed Stanlib’s global science and technology fund and co-managed the Stanlib Value fund.

The birth of Benguela Global Fund Managers

“My idea for Benguela, to have a global equity fund, came from that experience,” Mnguni said. He then spent three years as head of equities and portfolio manager at Mergence Investment Managers until August 2013.

After gaining experience locally and internationally, he co-founded Benguela Global in 2013 with the vision of building a transformed, South African-owned global investment firm.

“Foreign fund managers were coming into South Africa, managing assets from London or New York, paying taxes there, creating jobs there. We, as South Africans, were losing out. We wanted to change that.”

“We funded the business using our savings, as no one was willing to lend us money. The business remains in the hands of staff and two families,” he said. 

“We finished repaying the startup loans from our lenders in 2022. This provides perspective about the hardships of being a startup business in the industry and in South Africa.” 

Today, Mnguni is the chief investment officer (CIO) of Benguela, a company that employs around 20 people, runs graduate and internship programs, and has grown its assets under management to more than R7 billion. 

“We’ve made progress, but I still believe our best days lie ahead. We have to work even harder to get there,” Mnguni said.

Looking back, he believes the hardships shaped him. “The experience of being a security guard was humbling. People don’t choose their circumstances,” he said.

“That taught me empathy, discipline, and focus — qualities that have carried me throughout my journey.” He added that Benguela is looking to almost triple its assets under management over the next 10 years to R20 billion.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/finance/837425/the-south-african-who-went-from-being-a-security-guard-to-managing-over-r7-billion/