The woman revolutionsing Africa’s largest services company

Mpumi Madisa heads the largest service company in South Africa, which includes over 205 businesses and more than 130,000 employees.

Bidvest Group is one of South Africa’s largest conglomerates, contributing to various sectors and providing essential services to businesses and consumers alike. 

Founded in 1988, it has grown into a leading provider of services, trading, and distribution solutions across various industries.

Brian Joffe, one of South Africa’s most successful entrepreneurs and visionary business leaders, started the company by acquiring Chipkins, a food services company, for R23 million. 

Over the next year, Bidvest rapidly expanded through strategic acquisitions and was listed on the JSE. Joffe envisioned a future for South Africa where the country is integrated into the global economy. 

This spurred him to capitalise on opportunities during challenging times, demonstrating unwavering faith in the country’s potential.

He developed a unique business model empowering individual entrepreneurs to grow their operations.

Joffe’s aggressive deal-making style and a keen eye for undervalued assets earned him a reputation as a shrewd businessman. 

While there were occasional missteps, such as the French deal and the Adcock Ingram acquisition, Joffe emphasizes the inherent risks of entrepreneurial endeavours.

His legacy as a visionary leader and successful entrepreneur is solidified by the company’s significant growth and global reach.

Today, Bidvest is a giant in the South African business scene, with operations spanning industries such as services, trading, distribution, and financial services. 

From hygiene services to freight management, Bidvest’s operations touch nearly every aspect of daily life in South Africa. 

For the past five years, this business giant has been run by Mpumi Madisa, who has not only filled her predecessors’ shoes but is making her own legacy by revolutionising the company and setting it up for continued success.

The woman leading the charge

Born and raised in Gauteng, Madisa grew up in a family that prioritised education and hard work. Her parents, both educators, instilled in her a passion for learning and excellence.

After matriculating, she furthered her education at Wits University, where she changed her major from a science course to mathematics, statistics and economics. 

She holds a bachelor’s degree in economics and mathematics, a BCom honours degree in economics and a Master’s degree in finance and investment.

Straight out of university, Madisa was employed by Hollard Insurance as a trainee marketing assistant. She worked there for 18 months and then left for Prestige, a Bidvest subsidiary specialising in cleaning. 

At Prestige, she served as client relations manager, a position that was created for her and the beginning of a career trend. 

Three years later, she left Prestige to work in the public service, where she was chief director of transformation at the Gauteng Department of Agriculture and Rural Development. 

She later returned to Prestige in 2008, where she served as corporate affairs director in charge of four departments and sales director. 

A few months later, she was promoted to work at the group level and was appointed to the Bidvest board. 

In 2019, she made history by becoming the first woman appointed Chief Executive Officer of Bidvest Group.

Since then, Madisa has led the company to expand its portfolio through strategic acquisitions, including ventures into niche markets like hygiene and waste management​.

Her tenure has also been characterised by a focus on sustainability, reflecting her belief that businesses must create social value alongside economic returns.

Madisa has been vocal about South African businesses’ importance in addressing systemic challenges, such as unemployment and inequality. 

She often emphasizes the role of leadership in driving meaningful change, both within organizations and in society at large​.

Since becoming CEO, Madisa has overseen a wave of acquisitions that have expanded Bidvest’s operations in hygiene, facilities management, and other high-growth sectors. 

Notable acquisitions include Citron Hygiene, which adds international reach in the US, Canada, and the UK, and WearCheck, a specialised monitoring company which strengthens Bidvest’s presence in the vehicle and fleet services sectors.

Madisa has also strategically extended Bidvest’s reach into international markets through acquisitions across North America and Europe. 

This diversification strategy is a key aspect of her leadership, designed to reduce dependence on the South African economy and open new revenue channels.

Bidvest’s latest results have served as proof that this strategy is not only working for the business but catapulting it to new heights.

For the financial year through June 2024, the company’s revenue grew 6.7% to R122.6 billion, with trading profit jumping 8.5% to R12.4 billion.

Five out of its seven divisions reported profit growth, with four delivering impressive double-digit increases. 

Considering its acquisition-heavy approach, Bidvest managed to maintain an impressive return on funds employed of 37.3%, albeit declining slightly from 38.3%.

Basic earnings per share (EPS) increased by 6.6% from 1,757.3 cents to 1,873.8 cents, mainly due to good operational performance moderated by higher net finance and acquisition charges. 

Cash flow from operating activities grew by 18.7%, more than double net income growth after the company paid more to its equity and debt capital providers.

While prioritising growth, Madisa has also proven her business acumen by showing that she does not simply care about growth for growth’s sake and has emphasised sustainable growth above all else.

Therefore, alongside its acquisition spree, Madisa has also ensured that Bidvest lets go of what is no longer serving the business’ best interests.

In February this year, Bidvest concluded a deal whereby black women-owned financial firm Akhona Strategic Investments bought a 27.5% stake in Bidvest International Logistics from Bidfreight.

Also this year, Bidvest announced that it will be exiting its banking business as part of a restructuring of its financial services division, which includes selling Bidvest Bank and FinGlobal.

This “strategic restructuring” will impact the Bidvest Financial Services division, which provides banking and related products and services to South African corporations, businesses, and consumers.

By narrowing the business’ focus while expanding its future growth opportunities, Madisa is setting up the business for continued but manageable growth.

It is clear that investors also back Madisa and her vision for the company, as Bidvest’s share price is up over 10% in the year to date and up 28% over the past five years since she took office.

In 2023, Madisa was also included in Forbes’ Top 100 list of the most powerful women in the world.

In an interview with CFO South Africa, Madisa said she believes in leading by example and earning respect.

“I think that people will follow you when they believe in you, when you know how to deliver when you intrinsically understand what you are doing and will make the right decisions,” she said.

“Because Bidvest has 120,000 people, one of the things that’s at the top of my mind is the influence of my leadership and how I can touch all 120,000 people in the Bidvest family.”