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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This week's issue supported by...
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The week in brief...
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In the week that saw the U.S. President arrive in Kenya, there were a number of pieces in different media outlets reviewing, and in most cases, reprising the investment case for Africa. One of the most interesting to our minds was a package of content that appeared in Financial Times Magazine looking at the economic and cultural revival that has shifted perception of sub-Saharan Africa from "...burden and basket case to a repository of talent, resources and opportunity."
On the deal front, the biggest commitment came from a DFI last week. While in Kenya attending the Global Entrepreneurship Conference, OPIC's President & CEO Elizabeth Littlefield signed a $233 million debt commitment to finance the construction and operation of the Kipeto Wind Power Project situated in Kajiado, south of Nairobi. The project is being developed in partnership with African Infrastructure Investment Managers, the International Finance Corporation and Craftskills Wind Energy International.
In private equity deal news last week, Investec Asset Management made an investment in Intelligent Debt Management, South Africa's largest consumer debt management company. Terms of the deal were not disclosed. Meanwhile, The Zimbabwe Herald reports that Takura Capital is set to invest $33 million in Cairns Holdings by September this year, thereby completing its buyout of the Zimbabwean FMCG manufacturer. The capital will be used to pay off $25 million in debt and recapitalize the group as part of its recovery plan.
Kagiso Tiso Holdings, fresh from their recent Servest acquisition, have taken a significant minority stake in Nigerian healthcare diagnostics company, Me Cure Healthcare. Terms of the transaction were not disclosed. The deal is the first institutional investment in Me Cure, and the capital will be used to expand the business, which KTH regards to be a key healthcare portfolio holding and one which it expects to grow its position in the healthcare sector alongside Me Cure's founders.
Databank Agrifund Manager Limited has successfully closed its investment in Norish, one of Ethiopia's largest producers of fortified blended foods and animal feed. The value of the deal was undisclosed, but in an emailed response, Databank confirmed that the transaction size was close to the fund's upper limit of $4 million that it sets for individual investments. The funding was a 50/50 mix of equity and mezzanine financing. The funds will be used to buttress the company's working capital and capital expenditure needs, as well as expand sales of its corn soya blend product to broader retail markets.
In fund raising news, Business Day reports that South African insurance giant Sanlam is teaming up with mining magnate Patrice Motsepe to launch a $400 million private equity fund. Jointly committing $200 million to get the fund raise started, they are looking to raise the balance from other investors by the beginning of next year. The fund will target deals across various sectors, including, obviously, mining and financial services.
You can review these and other stories by scrolling down and reviewing the headlines, abstracts and links.
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DFI
OPIC backs Kipeto WPP with $233mln debt // africacapitaldigest.com
The U.S. Governments development finance institution signed a letter committing $233 million in debt financing to support the construction and operation of the Kipeto Wind Power Project in Kajiado, Kenya last week. The project is being developed in partnership with African Infrastructure Investment Managers (AIIM), the International Finance Corporation (IFC) and Craftskills Wind Energy International.
Read more...
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Private Equity
KTH takes significant minority stake in Me Cure // africacapitaldigest.com
Kagiso Tiso Holdings has acquired a significant minority stake in Nigerian healthcare diagnostics company, Me Cure Healthcare. Terms of the transaction were not disclosed. The deal is the first institutional investment in Me Cure, with KTH acquiring the stake from the company's founders, Samir Udani and Kunle Adebowale.
Read more...
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Private Equity
Investec backs consumer debt management company // africacapitaldigest.com
Investec Asset Management has invested in Intelligent Debt Management (IDM), South Africa's largest consumer debt management company. Terms of the deal were not reported. The capital will be used to grow the company's operations to meet the expected expansion in market demand for its services as the domestic credit environment becomes more challenging for the country's consumers.
Read more...
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Private Equity
Takura Capital gets approval to buyout Cairns Holdings // herald.co.zw
Private equity firm Takura Capital is set to invest $33 million in Cairns Holdings by September this year, thereby completing its buyout of the Zimbabwean FMCG manufacturer. The capital will be used to pay off $25 million in debt and recapitalize the group as part of its recovery plan.
Read more...
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Private Equity
Databank takes majority stake in Ethiopia's Norish // africacapitaldigest.com
The AAF SME Fund managed by Databank Agrifund Manager Limited has successfully closed its investment in Norish, one of Ethiopia's largest producers of fortified blended foods and animal feed. The value of the deal was undisclosed, but in an emailed response, Databank confirmed that the transaction size was close to the fund's upper limit of $4 million that it sets for individual investments. AAF SME Fund was the sole external investor in the deal and the stake was acquired from the founders of the company.
Read more...
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DFI
IFC backs Africell with $35mln loan // africacapitaldigest.com
The IFC has announced approval for a $35 million loan to Africell to support mobile network upgrades and expansions in Gambia, the DRC, Sierra Leone and Uganda. The new financing will help the telecom operator expand both coverage and services in each country, as well as refinance the company's debt into one facility.
Read more...
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OPIC's Elizabeth Littlefield signs $233 million debt commitment letter for Kipeto Wind Power Project
Image Credit: Overseas Private Investment Corporation
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Credit
Zambia's debt offers 9.375% yield
// wsj.com
Zambia raised $1.25 billion from investors in debt sale last week. The bonds, for which investors paled orders in excess of $2.5 billion, mature in July 2025, July 2026 and July 2027 and offer investors a yield of 9.375%. Ratings agencies Standard & Poor's and Fitch had both recently expressed concerns over the country's finances, warning of its challenges to fund a growing budget gap.
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Private Equity
Motsepe and Sanlam plan $500mln private equity fund
// bdlive.co.za
Sanlam is teaming up with mining billionaire Patrice Motsepe's company Ubuntu-Botho to launch an Africa-focused private equity fund. The fund, which will target opportunities in various sectors including mining and financial services, aims to raise $500 million by early 2016. Sanlam and Ubuntu-Botho look set to commit $200 million between them, with the balance being raised from other investors.
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Private Equity
Kinnevik, LeapFrog re-up for Bima's $38.4mln C round
// africacapitaldigest.com
Bima, the Swedish provider of mobile-delivered insurance products and services in emerging markets successfully closed a $38.4 million series 'C' round last week, with participation from existing investors including AB Kinnevik and emerging markets financial services specialist investor, LeapFrog Investments.
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AfCD's Guide to sub-Saharan Private Equity
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Perspectives
Power Africa still sputtering into life // nytimes.com Two years after President Obama launched Power Africa, promising to lift people out of poverty, the reality bears little resemblance to what was envisioned. A review of progress so far and the challenges the project faces.
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Perspectives
Entrepreneurship a risk-avoidance, not risk-embracing, strategy // ft.com
A look at the paradox of entrepreneurialism in Africa, where, on the one hand, given the market and economic realities, everyone is an entrepreneur while on the other hand the market is unused to risk capital. In Uganda, the formal economy is considered so risky that almost everyone has a start-up that they run on the side, making entrepreneurialism a form of risk-avoidance rather risk-adoption.
Read more...
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Perspectives
Here comes Africa // ft.com
A package of content from the FT Magazine on the economic and cultural revival that has shifted perception of sub-Saharan Africa from "...burden and basket case to a repository of talent, resources and opportunity." Given the magnitude of things that need to be achieved, maintaining the momentum of the continent's rise in the face of ebbing commodity prices and rising debt is going to be challenging.
Read more...
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Perspectives
Shelve developed world mindsets when investing // howwemadeitinafrica.com
An excerpt from Jake Bright and Aubrey Hruby's new book "The Next Africa" of how using a developed world mind set when investing in Africa can lead to poorly evaluated and missed opportunities as well as adoption of costly strategies. They call for companies and investors to shelve their mind sets and "...step out into the world as it truly is."
Read more...
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Companies, People & Profiles... |
Company News
EOS Capital looks to finance Namibia's development // newera.com.na
Private equity firm EOS Capital is looking for opportunities in the consumer, ICT, general Industrial and environmental sector in its home country, Namibia. A look at the firm and its planned $60 million Allegrow Fund's goals to invest in the South West African country's development.
Read more...
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Profile
Profile of South African business incubator Awethu Project // bdlive.co.za
A brief profile of the Awethu Project, the South African incubator founded by Yusuf Randera-Rees with R60,000 in 2009 which now has over R160 million under management. To date, Awethu has incubated more than 500 companies, several of whom have been very successful.
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People News
New business development lead at Fairview // africacapitaldigest.com
Fairview Capital Partners, the private equity firm with $3.7 billion under management, has appointed Michele Chow-Tai as Director and Head of Business Development.
Her appointment was effective July 13th, 2015.
Read more...
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People News
StanChart appoints new head for Middle East & Africa // thenational.ae
As part of the management re-mould currently underway at Standard Chartered, Sunil Kaushal, the bank's Chief Executive for India and South East Asia, has been appointed Chief Executive for the Middle East and Africa. He starts his new role on October 1st, replacing Christos Papadopoulos who is set to leave the bank at the end of the year.
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People News
Atlas Mara appoints Sanjeev Anand CEO for merged banks // afkinsider.com
Atlas Mara is reportedly hiring Sanjeev Anand to be the CEO of the as yet unnamed bank that'll emerge from the combination of its two banking acquisitions, BRD Commercial Bank and Banque Populaire du Rwanda. Anand was most recently the Managing Director of I&M Bank Rwanda.
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COO at Kenya Markets Trust
Based in Nairobi, Kenya
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CEO for Africa50 Infrastructure Fund
Based in Casablanca, Morocco
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Head, Investments at Shell Nigeria Closed PFA
Based in Lagos, Nigeria
Read more...
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Senior Associate, Principal Credit Investments at CPP
Based in London, UK
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Director, Financial Sector Investment in Africa
Based in Johannesburg, South Africa
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French speaking VP for Africa Private Equity fund
Based in London, UK
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Vice President for Africa-focused Private Equity firm
Based in Lagos, Nigeria
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Associate for Africa-focused Private Equity firm
Based in Lagos, Nigeria
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Business Development in Nigeria & West Africa for Nexus Capital
Based in Lagos, Nigeria
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SuperInvestor Africa | 14-16 September | The Westin, Cape Town Join 250+ members of the cream of the African private equity industry, including 100+ local and international LPs, to explore the evolving dynamics of LP/GP relationships across the continent. With in-depth analysis from over 100 speakers on LP appetite, fundraising, benchmarking, co-investing, due diligence, global & local LP perspectives and much more. To enjoy 10% savings, please quote VIP Code FKR2383ACDWB.
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Cape Town, September 14th to September 15th, 2015
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Africa Infrastructure and Power Forum
Beijing, October 15th to October 16th, 2015
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Private Equity in Africa 2015
London, October 28th, 2015
Read more...
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Powering Africa: the Finance Options
Cape Town, November 5th to November 6th, 2015
Read more...
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The Global African Investment Summit
London, December 1st to December 2nd, 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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