British tycoon to invest a billion in SA

Sir Richard Branson with 11-year-old Cleo Philander.

British tycoon Sir Richard Branson says he plans to invest around R1 billion within a year in building new Virgin Active clubs and upgrading existing ones in SA.

In terms of the plan, Virgin Active, Branson's local network of 98 gyms, intended to add 10 new gym clubs, which bear the iconic Virgin brand, he said. 

"It's one of the great success stories in Africa and SA, 98 clubs - why couldn't it be 100 clubs? I think I'll come back when the 100th club opens," Branson told I-Net Bridge at the weekend in Soweto, south of Johannesburg. Branson is in the country to officially unveil the Virgin Active gym in Maponya mall and to divulge new expansion plans. 

"We have 10 clubs opening, which is the most we've ever had. We will be spending a billion rand over the next twelve months upgrading the current clubs and building new ones. I think as far as Virgin Active is concerned there will be a lot of expansions," he said. 

The British entrepreneur also said that they wouldn't stop investing, despite current economic challenges.  

"There are always unexpected challenges in business - for example, 9/11 had a hugely negative impact on my airline business and I lost 300 million dollars in a month. There are still opportunities even in difficult times and businesses need to get on their feet and create employment; they can't depend on government to do it. Despite the economic crisis we won't stop investing, that is essential I think. Businesses need to play their part in getting the economy back on track. 

Apart from his new book launch and the Virgin Active gyms, Branson said he was also doing his part in eradicating poverty in Africa. 

"We also do non-profit ventures here in Africa," he said, echoing his fellow entrepreneur Richard Maponya, who was also present at the opening of the gym. 

Maponya said the opening of the Virgin Active gym in Soweto would help with regard to creating jobs. 

"We have quite a number of entrepreneurs and I must say Soweto is a pacesetter. Now that we have a Virgin Active gym here, which is successful, rest assured you are going to find yourself being compelled to roll them out throughout the nine provinces, as there will be a demand for the clubs," Maponya said.