The
weekly roundup of Africa's Private Capital news
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Here's the latest weekly wrap of the most interesting Africa-related private equity, infrastructure and venture capital deal stories, market opinion articles and information pieces.
Thank you for being a reader and we look forward to continuing to keep you informed on the private capital investment themes, deals and fundraisings in Africa.
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 to sign up here.
As always, if you have any tips, suggestions or questions, please reach out to Allan Cunningham at
[email protected]
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This week's issue supported by...
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If the prior couple of weeks had been notable for their lack of deals, last week' activity went some way to making up for any signs of weakness. The largest amount of capital being promised came courtesy of multilateral finance institution,
Africa Finance Corporation, which
announced plans to invest up to $140 million in a number of infrastructure projects being developed by the
Gabon Special Economic Zone, a joint venture vehicle of agricultural firm
Olam International and the
Government of Gabon. Among the number of infrastructure projects their backing will support are a minerals terminal and a grain terminal. The initiative is a critical element of the Gabonese republic's "Emergent Gabon Strategy", which seeks to reduce the country's reliance on crude oil and diversify into other sectors.
Staying in West Africa,
Vantage Capital announced that it is is backing
Landmark Africa, a Nigerian property development firm, with $20 million. The deal marks the second deal for Vantage's third fund, which is still in-market looking for $260 million for its final close. Landmark is currently developing Landmark Village, a mixed-use precinct on Lagos's affluent Victoria Island and has already completed a 2,500 person events center, a Japanese Shiro restaurant and a Hard Rock Café. A state of the art training center and two multi-tiered office buildings with over 20,000 square meters of office space are also planned.
Mediterrania Capital Partners continues to deploy capital from its second North Africa-focused fund which closed with €120 million in August last year. In its second deal in as many weeks, the Maghreb-focused private equity fund announced an undisclosed investment in three North African retail clothing businesses owned by the
Ben Salem Group.
Capital Trust-managed Euromena III, a $150 million vehicle, is investing alongside them.
Daniel Viñas, the Partner who led the deal on behalf of Mediterrania Capital, and
Albert Alsina, the private equity firm's CEO and Managing Partner will take seats on the Ben Salem Group's board as part of the deal.
Meanwhile in South Africa,
Convergence Partners and
Stockdale Street, the firm that represents the Oppenheimer family interests' South African private equity portfolio, announced the acquisition of
e4, a South African technology company that sells its services to the financial services, legal and retail clients. Terms of the deal were not disclosed. Convergence's investment is being made through the firm's $200 million Communications Infrastructure Fund, which
held its final close in August last year. The investment will help the company push growth through a combination of new product and service development initiatives as well as acquiring additional clients in other geographies.
In other deal news, Kenya's fast-growing
Jamii Bora Bank has received approximately $12 million from two private equity funds--
Progression Capital Africa and
Equator Capital, the Chicago-based impact investor.
PCM Capital Partners, managers of the $65 million West Africa Emerging Growth Fund or WAEMGF, have announced a €5 million equity investment in
Surfline Communications, a provider of 4G LTE data and related services to residential, SME and Corporate clients in Ghana. And South Africa's
Brimstone Investment Corporation is mulling whether to expand its 58% holding in one of its private company investments, fishing company Sea Harvest, to 85% by buying out the stake owned by fellow black economic empowerment investor,
Kagiso Strategic Investments.
And finally, last week saw the official launch of
African Rainbow Capital, the new financial services venture set up by Patrice Motsepe which will focus on financial services and private equity investments. The firm, which will be headed by former
Sanlam CEO Johan van Zyl and former
Sanlam Investments CEO Johan van der Merwe, is looking to build a portfolio of assets in the banking, insurance, distribution, asset management, property, private equity and healthcare sectors. According to
Business Day, the firm, which has a R10billion (about $680 million) commitment from the Motsepe family trust's Ubuntu-Botho Investments, has already made a number of investments in partnership with Sanlam.
To read more on these and other stories from the last week, please scroll down for the abstracts and links.
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Africa Finance Corporation is backing the Gabon Special Economic Zone with up to $140 million for infrastructure projects
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Private Equity
Vantage Capital backs Landmark with $20mln
In its second deal for its third fund, Vantage Capital, Africa's largest mezzanine fund manager has announced that it is backing Landmark Africa, a Nigerian property development firm, with $20 million. The Lagos-based company, which has built a high-quality property portfolio over its nineteen-year history, is currently developing Landmark Village, a mixed-use development on Victoria Island in the Nigerian capital.
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Private Equity
Convergence and Stockdale acquire 100% of e4
Private Equity investors Convergence Partners and Stockdale Street have joined forces to acquire e4, a South African technology company that sells its services to the financial services, legal and retail clients. Terms of the deal were not disclosed.
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Private Equity
MCP and Euromena take minority stakes in retail group
In its second transaction in as many weeks, Mediterrania Capital Partners announced the acquisition of a minority stake in three North African retail clothing businesses owned by the Ben Salem Group; Tunisia's BS Invest, Morocco's CAP Retail and Algeria's Investex Algérie. The investment, which is being done in concert with Capital Trust-managed Euromena III, a $150 million vehicle, is being transacted through Mediterrania's €120 million second fund, which invested in Cieptal Cars a couple of weeks ago.
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Private Equity
Progression and Equator back Jamii Bora with $12mln
Progression Capital Africa and Equator Capital, the Chicago-based impact investor are backing one of Kenya's fastest growing banks, Jamii Bora, with approximately $12 million. Additional terms of the deal were not reported.
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Private Equity
WAEMGF invests €5mln in Surfline
PCM Capital Partners, managers of the $65 million West Africa Emerging Growth Fund or WAEMGF, have announced a €5 million equity investment in Surfline Communications, a provider of 4G LTE data and related services to residential, SME and Corporate clients in Ghana. As part of the deal, J. Mawuli Ababio, the Partner who led the transaction for PCM Capital, will take a seat on Surfline's Board. Additional terms of the deal were not disclosed.
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Infrastructure
AFC backs Gabonese infrastructure with $140mln
Africa Finance Corporation, the multilateral finance institution, is backing the Gabon Special Economic Zone, a joint venture vehicle of agricultural firm Olam International and the Government of Gabon, with up to $140 million. AFC's investment will support the portfolio of infrastructure projects being developed by the venture, including a new mineral terminal, a general logistics terminal and a number of additional infrastructure projects.
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Funds & Financing News...
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Private Equity
African Rainbow Capital makes it official
Last week saw the official launch of African Rainbow Capital, the new financial services venture set up by Patrice Motsepe which will focus on financial services and private equity investments. The firm, which will be headed by former Sanlam CEO Johan van Zyl and former Sanlam Investments CEO Johan van der Merwe, is looking to build a portfolio of assets in the
banking, insurance, distribution, asset management, property, private equity and healthcare sectors. According to
Business Day, the firm, which has a R10billion (about $680 million) commitment from the Motsepe family trust's Ubuntu-Botho Investments, has already made a number of investments in partnership with Sanlam.
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Venture Capital
MEST looks to raise $50mln for startups
Meltwater Entrepreneurial School of Technology or MEST, a pioneer of the startup hub model in Africa, is planning to raise a $50 million venture fund to back both MEST-trained and non-MEST trained entrepreneurs and their teams. In addition, it plans to open incubators in Nairobi and Lagos later this year, and be ready to open additional incubators in Johannesburg and Cape Town in 2017.
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This week's issue supported by...
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Projects & Portfolio Companies...
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Edcon defers $110mln coupon payment
South African retailer Edcon, which Bain Capital took private in a 2007 leveraged buyout deal, has received its lenders' support to defer a $110 million coupon payment until December in a bid to boost its liquidity. Reuters reports that the clothing retailer's plan received the support of 80% of its note holders for a 2018 bond. Downward pressure on the South African rand has made Edcon's ability to pay down its euro and dollar-denominated debt increasingly difficult.
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Brimstone mulls expanding Sea Harvest stake
Brimstone Investment Corporation is mulling whether to expand its 58% holding in private fishing company, Sea Harvest, to 85% by buying out the stake owned by fellow black economic empowerment investor, Kagiso Strategic Investments. The deal, which would be worth R270 million, would lift Brimstone's ownership holding to 85%. At the same time, Sea Harvest is looking to do a deal of its own, raising its ownership stake in Mareterram to hold 58% of the ASX-listed fishing group.
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Policy, Regulation & Compliance...
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Merger Control in Africa - an update
At the American Bar Association's annual conference held in Washington, DC, a panel of private and public sector experts discussed the current state of play in merger control on the continent and gave the audience insight on what dealmakers should be aware of as they look to execute transactions in Africa.
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Perspectives
Implementing Power Africa is slow going
As President Obama prepares to step down, his Power Africa initiative is still having trouble getting going. So says this report in The Africa Report, which looks at progress so far and some of the reasons why the initiative is taking longer to deliver the promised rewards than was originally hoped.
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Perspectives
Innovation and entrepreneurialism in Africa
Impressions of the venture startup scene on Africa from US Media and Internet Entrepreneur Chris Schroeder following his trip to Kenya for global incubator 1776's third annual Challenge Cup in Nairobi. Universal access to mobile and smart devices is driving the launch of a new generation of regional and someday global startups everywhere on the continent.
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Companies, People & Profiles...
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People
Clemente takes over as head of PROPARCO
Grégory Clemente has taken the helm at PROPARCO following his appointment as the development finance institution's new CEO. He took up his new responsibilities on
April 1st, having succeeded Claude Periou who had held the position for the last 4 years.
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Investment Officer, PERE at Africa Capital Alliance
Based in Lagos, Nigeria
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Regional Investment Director at leading DFI
Based in Ogun, Nigeria
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Investment Associate at CrossBoundary
Based in Bamako, Mali
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Investment Associate at Enko Capital
Based in Johannesburg, South Africa
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Investment Analyst at Enko Capital
Based in Johannesburg, South Africa
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Investment Executive, Project Finance at CDC
Based in London, United Kingdom
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Investment Analyst at Kappafrik Group
Based in Lagos, Nigeria
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Africa Financial Services Investment Conference 2016
London, May 5th to May 6th, 2016
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Africa's Investment Prospects - The 2016 Annual Debate
London, April 20th, 2016
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Zambia International Investment Forum
Lusaka, April 21st to April 22nd, 2016
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13th Annual AVCA Conference
Addis Ababa, April 25th to April 27th, 2016
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Southern Africa Energy & Infrastructure Summit
Maputo, May 4th to May 6th, 2016
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Global Private Equity Conference
Washington, DC, May 9th to May 12th, 2016
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18th Annual Africa Energy Forum
London, June 21st to June 24th, 2016
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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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Africa Capital Digest is a product of Rowayton Press
Rowayton, CT 06853, USA
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