The
weekly roundup of Africa's Private Capital news
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Each week we sift through most Africa-related private equity, infrastructure and venture capital deal news stories, market opinion articles and information pieces and winnow them down to those we feel are the most important and interesting for investors, companies and their advisors. Here's the latest issue, covering all happenings over the last 7 days. We hope you find the service useful. We'd be delighted if you shared it with any interested colleagues and/or partners. If they would like to receive their own weekly copy, they're more than welcome
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As ever, if you'd like to get in touch or share any tips or comments, please contact me
at [email protected]. Many thanks for reading.
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This week's issue supported by...
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The week in brief...
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Where deals were concerned, exits dominated the private equity news from Africa last week. At the beginning of the week, Verod Capital Management announced two exits - one full and one partial - from stakes it holds in two Nigerian companies. A strategic buyer acquired the entire 33% stake the private equity firm held in construction company H.F.P. Engineering, one of the country's leading developers of mixed residential and commercial properties, while a financial investor bought part of Verod's stake in beverage can manufacturer GZ Industries. In both instances, neither the acquirers nor the precise terms of the deals were disclosed.
In other exit news, Emerging Capital Partners sold its stake in NSIA Participations, the Abidjan-headquartered financial services group, to joint acquirers, private equity firm Amethis Finance and strategic investor, National Bank of Canada. The 24% stake was held by ECP's Africa Fund III. Again, the financial terms of the deal were not disclosed. The transaction is Amethis's fifth deal in sub-Saharan Africa's financial services sector, and a good example of their strategy of helping to forge mutually beneficial partnerships and relationships between leading international financial institutions and their African counterparts. The deal allows NSIA access to significant financial resources and banking expertise to help it develop its banking business and grow by taking advantage of the opportunities and synergies offered by the bancassurance distribution model.
The IFC agreed to loan $4.5 million to Goodlife Pharmacy, the Kenyan based pharmacy chain to help it expand its retail footprint to 80 planned new outlets across Kenya and the broader East African region over the next 5 years. The company, backed by Catalyst Principal Partners and Mauritius-based pharmaceutical chain Africa Chemist & Beauty Care last September, plans to open retail outlets in convenient locations in retail centres, petrol stations and others in close proximity to health clinics.
A pilot investment program joint venture between the UK government's Department for Energy and Climate Change and UK Green Investment Bank to assist in the investment of the UK's International Climate Change fund in Africa and India caught our attention last week. The pilot will target $298 million in investments to renewable energy and energy efficiency projects in East Africa, South Africa and India over the next 3 years. The program will see GIB investing outside the UK for the first time, where it plans to match the business model it has developed and used in the UK for these new, emerging markets.
A few other pieces caught our interest last week. How people slice and dice the data around the size and growth rate of Africa's emerging middle class differs depending on who you speak to. Ben Longman, Managing Director of Trendtype, the African Market Intelligence company, highlights several factors to How we made it in Africa on what needs to be considered when classifying the demographic. In a piece that appears on Institutional Investor's Sovereign Wealth Center, sovereign wealth funds are increasingly providing capital for major transportation, energy and other infrastructure projects across sub-Saharan Africa. Able to absorb large amounts of capital and providing steady, long term revenue streams, large-scale infrastructure projects match sovereign wealth funds' investment needs well. And finally, as Washington gears up to consider the renewal of the African Growth and Opportunity Act (AGOA) which expires at the end of September this year, a piece by the Brookings Institution examining the limitations of assessing individual countries' utilization of the benefits of the Act as the continent's regions become more and more integrated.
You can review these and other stories by
scrolling
down and reviewing the headlines, abstracts and links.
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Private Equity
Verod Capital sells stakes in HFP and GZI
// africacapitaldigest.com
Verod Capital Management has announced a full and a partial exit from two of its Nigerian investments, H.F.P. Engineering and GZ Industries. The private equity firm has fully exited its 33% stake in construction company H.F.P. Engineering, one of the country's leading developers of mixed residential and commercial properties,and partially exited from beverage can manufacturer GZ Industries.
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Private Equity
Amethis and National Bank acquire NSIA stake
// africacapitaldigest.com
Amethis Finance and National Bank of Canada have acquired a minority stake in NSIA Participations, the Abidjan-headquartered financial group. The 26.24% stake was sold to the consortium by ECP's Africa Fund III PCC. Financial terms of the deal were not disclosed.
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DFI
IFC loans $4.5mln to Goodlife Pharmacy
// africacapitaldigest.com
The IFC is making a $4.5 million loan to Goodlife Pharmacy, the Kenyan based pharmacy chan to help it expand its retail footprint with 80 planned new outlets across Kenya and the broader East African region over the next 5 years. The company plans to expand rapidly, opening retail outlets in convenient locations in retail centres, petrol stations and others in close proximity to health clinics.
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Verod Capital reduces its stake in beverage can manufacturer GZ Industries in partial exit
Image Credit: Agence Ecofin
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Infrastructure
Across sub-Saharan Africa, sovereign wealth funds are providing capital for major transportation, energy and other infrastructure projects. Able to absorb large amounts of capital and providing steady, long term revenue streams, large-scale infrastructure projects match sovereign wealth funds' investment needs well. Read more...
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Private Equity
UK GIB to invest in African renewables with $298mln
// africacapitaldigest.com
The UK Green Investment Bank has entered into an agreement with the UK government's Department for Energy and Climate Change to pursue a new pilot joint venture to assist in the investment of the UK's International Climate Change fund in Africa and India.
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This week's issue also supported by...
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Projects & Portfolio Companies...
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Private Equity
PPC ends merger talks with PIC-backed Afrisam
// reuters.com
After a protracted negotiation and acquisition process, South Africa's largest cement manufacturer PPC has pulled back from its opportunity to merge with unlisted rival Afrisam, which is majority owned by the country's government-owned pension fund manager, Public Investment Corporation.
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Middle Class
Assessing the real size of Africa's middle class
// howwemadeitinafrica.com
How people slice and dice the data around the size and growth rate of Africa's emerging middle class differs depending on who you speak to. Ben Longman, Managing Director of Trendtype, the African Market Intelligence company, highlights several factors that need to be considered in measuring the demographic.
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Mobile
Vodacom hard-pressed to find right assets at right price
// itweb.co.za
As Vodacom's revenues come under pressure in South Africa, the mobile operator is struggling to find assets elsewhere on the continent to help it reboot growth. The company has been on the hunt in Africa for several years and, to date, has come up short, failing to find quality assets with the right price tag.
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Oil & Gas
Low oil price drags down O&G deal activity
// africanbusinessmagazine.com
After two strong years of deals, dealmaking in Africa's hydrocarbon sector has all but ground to a halt, a casualty of the slump in oil prices. 2015 is yet to see a single upstream deal, following on from a year which saw $7.4 billion in upstream deals in Nigeria alone. A resurgence, in any, is not likely to take place until the end of the year.
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Exclusive reader offer...
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The 2015 Guide to sub-Saharan Private Equity
Reserve today for 30% savings with pre-publication price
Make sure you reserve your copy of AfCD's definitive guide to the private capital investors, funds and investment firms in sub-Saharan Africa. Once published in April, enjoy the following key benefits:
- For LPs; review SSA GPs, their strategies and their funds
- For GPs; find potential co-investors, plan secondary acquisitions and sales
- For Corporates; source assets for acquisition, targets for divestitures
- For Advisers; develop clients, transaction ideas and more
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Perspectives
Reviewing AGOA's utilization rates by Africa's countries
// brookings.edu
As Washington gears up to consider the renewal of the African Growth and Opportunity Act (AGOA) which expires at the end of September this year, a piece examining the limitations of assessing individual countries' utilization of the benefits of the Act as the continent's regions become more and more integrated. Read more...
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Trends - Venture Capital
Kenya and Nigeria top ranks for venture investments
// venturebeat.com
Reviewing data from VC4Africa's latest report, Kenya and Nigeria come out ahead of other sub-Saharan countries as the leading locations for entrepreneurs and investors. While Nigeria boasts the largest number of active entrepreneurs, Kenya attracts the most investment overall. Startup activity is not evenly distributed across the continent, with only a handful of countries attracting meaningful amounts of venture investment. Read more...
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Companies, People & Profiles... |
People News
Macready takes the helm at Old Mutual South Africa
// africacapitaldigest.com
Dave Macready will start as the new Chief Executive of Old Mutual South Africa on May 1st. Macready moves into the position from within the wider Old Mutual Group where he is currently the Group Managing Executive of Nedbank Wealth.
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People News
Imara Holdings appoints new CEO as Tumner retires
// africacapitaldigest.com
Tom Gaffney, a non-executive director of Imara Holdings since November 2014, has been appointed Group Chief Executive Officer of investment bank Imara Holdings, with immediate effect. He takes over from Imara's founder, Mark Tumner, who is retiring from the role.
Read more...
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Company News
Atlas Mara's first year loss, may seek capital for additional deals
// wsj.com
Publishing its first set of financial reports for the 13 months ending in December 2014, financial services investment company Atlas Mara has reported a loss of $63.1 million. As we reported earlier this year, the company may seek additional capital in 2015 to help finance additional acquisitions. Atlas Mara has raised $625 million since late 2013 via a London listing and a private placement.
Read more...
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Company News
Investments help AFC's income grow by 31%
// ngrguardiannews.com
In its annual financial report, multilateral DFI Africa Finance Corporation has reported positive income and balance sheet growth driven largely by the increasing values of its investments, fee income and cost containment.
Read more...
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Non Executive Board Members for Innovation Group
Based in Johannesburg, South Africa
Read more...
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Senior Associate at Helios Investment Partners
Based in London, UK
Read more...
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Investment Analyst at Arkesden Partners
Based in Nairobi, Kenya
Read more...
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Consulting Leadership opportunities at Deloitte
Several locations in Africa
Read more...
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Head, Corporate Finance for Investment Bank Advisory
Based in Johannesburg, South Africa
Read more...
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Head of Compliance for sub-Saharan Africa
Based in Johannesburg, South Africa
Read more...
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Head of Fundraising for Microfinancier
Based in Johannesburg, South Africa
Read more...
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Investment Banking Analyst at J.P. Morgan
Based in Johannesburg, South Africa
Read more...
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Africa Pensions & Sovereign Funds Investment Forum
New York, June 8th to June 12th, 2015
Read more...
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12th Annual AVCA Conference
London, April 27th to April 29th, 2015
Read more...
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Global Private Equity Conference
Washington, DC, May 11th to May 14th, 2015
Read more...
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Africa Financial Services Investment Conference
Brighton, May 12th to May 15th, 2015
Read more...
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CEO Infrastructure Investment Summit
Cape Town, June 3rd, 2015
Read more...
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We hope you found the digest to be a useful summary of the major happenings in Africa's private capital markets last week. We'd love it if you shared it with colleagues and business partners. They can sign up for free
here.
Best wishes for a productive week - if you have any tips, suggestions, questions or comments, please get in touch.
All the best,
- Allan
Allan Cunningham
Editor & Publisher
AfCD | Africa Capital Digest
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