GENBEL - RESULTS FOR THE HALF-YEAR TO 31 DECEMBER 1998

GENBEL SOUTH AFRICA LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/32379/06)
RESULTS FOR THE HALF-YEAR TO 31 DECEMBER 1998
OWN A SHARE OF SUPERIOR COMPANIES
- R195 MILLION RAISED IN RIGHTS ISSUE
- INVESTMENT IN PRIVATE EQUITY
REVIEW

THE INVESTMENT ENVIRONMENT FOR THE FIRST SIX MONTHS OF THE FINANCIAL YEAR WAS
CHARACTERISED BY A GLOBAL MARKET CRASH.  AFTER THE INITIAL DESTABILISATION IN
THE ASIAN MARKETS IN OCTOBER 1997, THE TURBULENCE CONTINUED FOR MOST OF 1998,
CULMINATING IN THE COLLAPSE OF THE RUSSIAN BOND MARKET.  THIS ALSO AFFECTED THE
LOCAL MARKET. FOLLOWING AN INITIAL GAIN OF SOME 10%, THE JOHANNESBURG STOCK
EXCHANGE FINANCIAL AND INDUSTRIAL INDEX  DECLINED BY OVER 35% DURING THE MONTH
OF AUGUST 1998 ALONE. SINCE THEN IT HAS RECOVERED SOME OF ITS LOSSES AND
STABILISED AT LOWER LEVELS.
GENBEL SOUTH AFRICA PERFORMANCE

DURING THE SIX MONTH PERIOD TO DECEMBER 1998, THE GENBEL SOUTH AFRICA NET ASSET
VALUE PER SHARE DECLINED BY 31%.  THIS WAS MORE THAN THE 25% REDUCTION IN THE
FINANCIAL AND INDUSTRIAL INDEX. THE MAJOR REASON FOR THIS WAS THE RELATIVE
UNDER PERFORMANCE OF SOME OF GENBEL SOUTH AFRICA'S HOLDINGS SUCH AS PRIMEDIA,
GENSEC AND MCCARTHY RETAIL. FOR THE 12 MONTHS TO DECEMBER 1998, GENBEL SOUTH
AFRICA LOST 1% OF ITS VALUE, WHILE THE FINANCIAL AND INDUSTRIAL INDEX LOST 16%.
GEARING WAS MAINTAINED AT A RELATIVELY LOW LEVEL THROUGHOUT THE PERIOD.  A
MAJOR NEW ADDITION TO THE PORTFOLIO WAS THE FIRST R58 MILLION INVESTMENT OUT OF
A TOTAL COMMITMENT OF R150 MILLION IN THE GENSEC NSA EQUITY FUND, A PRIVATE
EQUITY FUND WHICH MAINLY INVESTS IN UNLISTED COMPANIES AND ASSISTS THEM TO
DEVELOP TO THEIR FULL POTENTIAL.  OTHER SIGNIFICANT SHARE PURCHASES IN THE SIX
MONTHS UNDER REVIEW WERE INVESTMENTS IN DATATEC, BIDVEST, PROTEA FURNISHERS,
STORECO, PRIMA TOYS, SANLAM, REBHOLD, JD GROUP AND EDUCOR.  THE LARGEST
PROCEEDS FROM SALES OVER THIS PERIOD AROSE FROM THE DISPOSAL OF THE ENTIRE
HOLDINGS OF BOTH NORWICH AND MILLENNIUM ENTERTAINMENT, BOTH AS A RESULT OF
OFFERS TO MINORITIES.
RIGHTS ISSUE

THE COMPANY RAISED R195 MILLION FROM THE ISSUE OF 7 MILLION SHARES. IN
ADDITION, 3 MILLION OPTIONS THAT ENTITLE THE HOLDERS TO PURCHASE GENBEL SOUTH
AFRICA SHARES AT A PRICE OF R32,00 ON 1 JULY 1999 WERE ISSUED. THE PURPOSE OF
THE RIGHTS AND OPTIONS ISSUES WAS TO PARTICIPATE IN INVESTMENT OPPORTUNITIES
AND TO REDEEM R125 MILLION OF PREFERENCE SHARE DEBT IN JULY 1999.
NET ASSET VALUE AND SHARE PRICE (CENTS)

JUNE 91  JUNE 92  JUNE 93  JUNE 94  JUNE 95  JUNE 96  JUNE 97 JUNE 98 DEC 98
NET ASSET VALUE PER SHARE

740      701      799      992      1030     1643     2372    2925    2010
SHARE PRICE

635      580      630      815      835      1380      2360   2850    1950
PORTFOLIO COMPOSITION
TOP 10 INVESTMENTS AS AT 31 DECEMBER 1998:

                                                 MARKET      % OF TOTAL
COMPANY/GROUP            SECTOR                  VALUE       INVESTMENT
COMPAREX                 INFORMATION TECHNOLOGY  122         13,0

DIMENSION DATA           INFORMATION TECHNOLOGY  116         12,3

INVESTEC GROUP           FINANCIAL SERVICES      61          6,5

GENSEC NSA EQUITY FUND   PRIVATE EQUITY          58          6,2

GENBEL SECURITIES        FINANCIAL SERVICES      54          5,7

JD GROUP                 RETAIL                  33          3,5

NAIL                     FINANCIAL SERVICES      32          3,4

RICHEMONT                INDUSTRIAL              29          3,1

DATATEC                  INFORMATION TECHNOLOGY  27          2,9

NEDCOR                   FINANCIAL SERVICES      26          2,7
UPDATED INFORMATION - 20 JANUARY 1999

NET ASSET VALUE (ESTIMATE, CENTS PER SHARE)          2 140

JSE SHARE PRICE (CENTS PER SHARE)                    1 910
SHAREPLAN

THE GENBEL SHAREPLAN HAS CONTINUED TO GROW IN THE PERIOD UNDER REVIEW. THERE
ARE NOW OVER 10500 PARTICIPANTS WHO HOLD 4,1 MILLION SHARES THROUGH THE PLAN.
THIS REPRESENTS 8,7% OF THE ISSUED SHARE CAPITAL OF THE COMPANY.
DIVIDEND

NO DIVIDEND OR CAPITALISATION ISSUE HAS BEEN CONSIDERED AS THE COMPANY HAS A
POLICY OF DECLARING DIVIDENDS ON AN ANNUAL BASIS AFTER THE JUNE YEAR-END.
OUTLOOK

DESPITE THE TURBULENT MARKET CONDITIONS, GENBEL SOUTH AFRICA WILL MAINTAIN ITS
CURRENT INVESTMENT STRATEGY, WHICH IS TO REMAIN FULLY INVESTED IN SUPERIOR
COMPANIES AND TO USE GEARING WHEN THE MARKET CONDITIONS INDICATE THAT THIS WILL
YIELD ENHANCED RETURNS.  GENBEL SOUTH AFRICA WILL PURSUE ANY OPPORTUNITIES THE
MARKET MIGHT PROVIDE TO INCREASE ITS EXPOSURE TO THE LOW RISK GROWTH COMPANIES
THAT MATCH THE PHILOSOPHY OF THE FUND.
T L DE BEER                 R W MAY
CHAIRMAN                    MANAGING DIRECTOR
JOHANNESBURG
22 JANUARY 1999

THE INTERIM REPORT WILL BE POSTED TO SHAREHOLDERS SHORTLY.
PORTFOLIO WEIGHTINGS
INFORMATION TECHNOLOGY R270M - 27,9%
INDUSTRIAL R125M - 12,7%
RETAIL R100M - 10,4%
MEDIA R78M - 8,1%
PRIVATE EQUITY R58M - 6,0%
FINANCIAL SERVICES R338M - 34,9%
INFORMATION TECHNOLOGY R270M - 27,9%
INVESTMENT RETURNS TO DECEMBER 1998

                                                     3 YEAR       5 YEAR
                              6 MONTH    1 YEAR      RETURN PER   RETURN PER
                              RETURN     RETURN      ANNUM        ANNUM
                              %          %           %            %

GENBEL SOUTH AFRICA           -31,3      -1,3        16,4         18,6
(NET ASSET VALUE)

GENBEL SOUTH AFRICA           -29,9      -1,8        23,6         28,3
(SHARE PRICE INCL. DIVIDENDS)
JSE FINANCIAL &INDUSTRIAL

INDEX (INCL. DIVIDENDS)       -23,9      -14,3       -1,2         8,5

THE RETURNS IN THIS TABLE DIFFER FROM THOSE MENTIONED EARLIER BECAUSE OF THE
INCLUSION OF DIVIDENDS.

FOR INFORMATION ABOUT GENBEL SOUTH AFRICA OR THE SHAREPLAN PLEASE CONTACT:
GENBEL SHAREPLAN INFORMATION LINE (011) 280-1031
GENBEL SOUTH AFRICA LIMITED
3A SUMMIT ROAD, DUNKELD WEST, SANDTON 2196
PO BOX 411420, CRAIGHALL 2024
TELEPHONE: +27 (11) 280 1031
FACSIMILE: +27 (11) 280 1092
INTERNET ADDRESS: WWW.GENBEL.COM
E-MAIL ADDRESS: MOREINFO@GENBEL.COM

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