Momentum eyes bolt-on buys to bulk up advisers and lift sales

Why Momentum wants to shop

Momentum Group Ltd. is scouting acquisitions to scale its advisory force and keep growth on track. "We are almost in the acquisition space to see how we can exponentially grow our own advisory force and we need that in order to secure growth, especially in our life products," said Chief Executive Officer Jeanette Marais in a Thursday interview.

The company has historically relied on independent financial advisers rather than a large in-house agency, which leaves it with a smaller tied base than rivals. With demand rising for more specialized products and a push to gain market share, Momentum is pivoting to bolt-on deals. "We are in quite a lot of strategic conversations there because it's also a market where you need a bit of consolidation," Marais said. "We are making sure that we do more than just organic growth."

What is changing in South Africa's advice market

Across South Africa, many small adviser networks are hitting growth ceilings and need capital to recruit and expand. Tougher governance requirements and higher technology, compliance and admin costs are nudging smaller independents to partner with larger firms. According to Marais, independents often opt for Momentum as the firm preserves the autonomy of its network, allowing advisory groups to expand with minimal disruption. The broader advice industry is in a steady shift toward networks and selective consolidation.

By the numbers

Over the 12 months through June, Momentum's normalized headline earnings rose 13% to 7.06 billion rand. The company beat its 7 billion rand headline earnings goal a year ahead of schedule, marking its inaugural achievement of that threshold. The group set the final dividend at 1.20 rand a share, which lifts the full-year distribution by 31% to 2.30 rand.

Shares were down 2.1% in Johannesburg at 11:41 a.m., the lowest since June 9. Momentum is preparing its next strategy covering 2027 to 2030, with an announcement expected within the coming 12 months.

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Why it matters for your money

More advisers and more specialized products usually translate into fiercer competition for your business. If Momentum's acquisition pivot leads independents to better tools and simpler service models, you could see clearer choices and potentially tighter pricing on life and investment products. Watch how quickly any deals close, how well new teams are integrated, and whether service quality ticks up - that is where customers will feel it first.

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