Growing up in Kariega, one of the founders of the African Pioneer Group said his ambition as a young boy had been to become an advocate.
But somewhere along the line, Stephen Dondolo fell into business.
Established by a conglomerate of 600 small businesses in 1990, African Pioneer Group is one of the leading investment companies in the Eastern Cape, 32 years on.
The company was founded shortly after the abolishment of the Bantu Group Areas Act as a means to protect and boost the locally driven township economy.
Dondolo, one of its founders, as well as its 47 remaining shareholders, are all from Kariega.
“I went into business by accident. I come from a poor family in KwaLanga and started out as a low-level trader shortly after matric with buying and selling fruit.”
This, he said, had later led him to selling vehicles.
After passing matric in the late 1970s, Dondolo landed a job as an electrical apprentice at Goodyear — a first for a young black man at the time.
“We were not allowed such privileges. I truly was lucky to get that job. After I completed the 18-month apprenticeship I decided to start trading.”
He opened a spaza shop early in the 1980s and also sold alcohol illegally.
In 1984 he applied for funding at Business Partners, which today would be known as a small business development corporation.
“I received R750,000 in funding which was a huge amount and a big deal because, again, this kind of assistance was not meant for [black] people.”
“But from rejections at the bank I was referred to them, and to my surprise I got such a huge amount.
“This was after my brother and I managed to put together R150,000 to start the Hotel and Entertainment Centre where I sold alcohol legally.”
When the Group Areas Act was abolished, Dondolo and other small black-owned businesses were approached by a professor from the then-PE Technikon.
He explained what the removal of the Group Areas Act meant to them.
“I remember a professor and others came to us as small business owners and told us that it opened an opportunity for anyone to run a business in the township.
“We felt we needed to protect key areas to run our businesses and this was when we decided to come together and established the Uitenhage Investment Group.
“The prediction was spot on because look at who are the small traders in the townships now. The majority are foreign nationals,” he said.
Due to challenges within the group, the other partners sold their businesses and in 1997 changed the name to the African Pioneer Group.
“We were 51 companies remaining at the time. We changed the name when we wanted to venture into the marine sector because we knew our former name wouldn’t resonate with the sea because there isn’t one in Kariega anyway.”
The company has grown over three decades and is involved in fishing, beverages, gaming and energy.
“It owns several businesses in the province and the Western Cape. It has shareholder stakes in various big brands like Coca-Cola, Woodlands Dairy, Sun Internaitonal’s Boardwalk and Metro Wind.”
Dondolo said the ability to interact with family-orientated businesses in other countries that had more experience than them was what had kept the business going and thriving over the years.
“Most big brands are owned by families, which is the foundation of our business because most of our family men came together with one goal of building a legacy company.
“We are delighted to see it still growing strongly and we want to leave a legacy of a 100% black-owned company,” Dondolo said.
The company celebrated its 32-year anniversary last night at the Boardwalk.
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