Kleuterzone: fairy tales and ruin

South Africans have seen their share of financial fables, yet few have been sung so sweetly—or collapsed so quickly—as KleuterZone, the preschool "investment" empire now under provisional liquidation.

- Tiaan Herbst

In barely two years, the venture attracted at least R130 million from about 1,300 investors, lured by annual returns of up to 62.4% (and, in certain leaflets, even 72%). When the promised March dividends and rent cheques failed to land, the chorus of complaints drowned out the ukuleles.

KleuterZone's founder, Anthonie Bougas—better known for once crooning on Afrikaans television—presented a simple formula: buy into a franchised crèche, lease it back to the operator, and watch the cash flow monthly.

In marketing decks, the company highlighted "guaranteed" dividend yields of R3,200 on every R100,000 staked.