Kholo Capital Mezzanine Debt Fund I has provided R275 million (approximately US$17 million) in mezzanine debt financing to DCC Holdings Proprietary Limited, a South African information and communications technology (ICT) distributor, to refinance existing debt and support the company’s long-term growth strategy.
The transaction highlights the role of alternative financing in supporting established African businesses, strengthening their capital structures and providing the financial flexibility needed to pursue expansion opportunities in a competitive regional market.
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Founded in 1988, DCC Holdings has developed an extensive distribution network across Southern Africa, supplying technology products and solutions spanning personal computing, printing, enterprise infrastructure and software. The company distributes products from major international manufacturers, including HP, Dell and Lenovo, to resellers, system integrators and retailers.
Its established logistics infrastructure and relationships with technology manufacturers and channel partners have positioned DCC as an important link between global technology suppliers and regional markets.
Mokgome Mogoba, Founder and Managing Partner of Kholo Capital, said the financing would support DCC’s experienced management team as the company enters its next phase of growth. He explained that mezzanine debt can help businesses optimise their capital structures, refinance existing obligations and secure the flexibility required to pursue sustainable expansion.
Zaheer Cassim, Founder and Managing Partner of Kholo Capital, also highlighted DCC’s operational capabilities and its commitment to inclusive and responsible business practices. These include supporting youth employment, learners with disabilities and small and medium-sized enterprise resellers, alongside the adoption of solar energy and water-saving measures.
According to Kholo Capital, these initiatives complement DCC’s commercial strengths and position the company to pursue opportunities across the Southern African ICT market while contributing to broader social and environmental objectives.
Hale Matsipa, Managing Partner of Kleoss Capital, welcomed the transaction, describing it as another example of collaboration between investors in South Africa’s private markets. Kleoss Capital, which backs DCC alongside members of the company’s senior management, sees the financing as supporting the business’s next stage of development.
Carlos Ferreira, Chief Executive Officer of DCC, said the company’s shareholders welcomed Kholo Capital into the group’s capital structure. He noted that DCC had continued to grow through the addition of key brands and the expansion of its existing footprint within established supplier relationships.
The transaction reflects the broader importance of financing solutions that help African companies manage existing debt while creating room for future investment. Mezzanine debt occupies a position between traditional senior borrowing and equity financing, offering businesses an additional source of capital without necessarily requiring the same degree of ownership dilution associated with issuing new shares.
For Southern Africa’s technology distribution sector, continued investment in logistics, supplier relationships and regional market access will remain important as businesses respond to evolving technology needs and demand for digital solutions.
The deal also underscores the contribution of private capital providers to the development of African enterprises. By combining financial resources with long-term growth objectives, investors can help established businesses strengthen operations, expand their reach and pursue new commercial opportunities.
However, the longer-term impact of the financing will depend on DCC’s ability to execute its growth strategy, manage its financial obligations and sustain demand across the markets it serves. Kholo Capital’s financing of DCC Holdings therefore represents both a refinancing transaction and a strategic step intended to support the company’s continued development in Southern Africa’s ICT distribution market.
