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.
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This week's issue supported by...
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One of the quieter weeks, deal-wise, of this year. The biggest investment, dollar-wise, looks to have been the R300 million backing of
Masonite by
Jacobs Capital in partnership with
Black Bird Capital. The South African wood manufacturer had applied for business rescue in December last year, and the competition commission gave the green light to Jacobs and Black Bird offer recently. They're looking to recapitalize the business and help broaden its product lines.
In an undisclosed deal,
DOB Equity is taking a minority stake in
Twiga Foods,
a mobile-based supply platform for retail outlets, kiosks and market stalls in Kenya. Vendors buy fruit and vegetables from Twiga using their mobile phones, who then deliver the ordered produce supplies directly to the retailers' stalls.
The capital will be used to help Twiga expand its supply capacity, increasing their market reach to over 7,000 vendors in Nairobi selling to 1.5 million low and middle-income customers.
Meanwhile, in a bet on Africa's demographic dividend,
Afinitas is investing $2.5 million in Adventis, a new African financial services company which will be incorporated in Jersey.
Afinitas will look to leverage its network across the continent to source a wide range of attractive financial services investment opportunities.
Listed private education company ADvTECH reported its interim results for the first six months of the year last week. As part of the announcement, the South African-headquartered company revealed that it has made two acquisitions during the period - a full buyout of Capsicum Culinary School and a stake in distance learning specialist Oxbridge Academy. No financial details for either deal were disclosed. You may remember that the IFC announced that it had spent $22 million for a 4% stake of the company in July, via a private placement.
The
Emerging Markets Private Equity Association released the statistics for private capital investment in the first half of the year last week. The data show an overall decline in investment in the regions, a result of what the industry body calls "sluggish activity in China and other larger markets." Africa was not immune either, with both the MENA region and Sub-Saharan African region posting fundraising and investment declines.
In sector news,
PwC published its annual Oil & Gas report.
Speaking at the launch of "Africa Oil & Gas Review 2016", the management consultancy's advisory leader for Africa, Chris Bredenhann, said that, in spite of low oil prices, now is the time for the continent's governments to overhaul their regulatory, fiscal and licensing systems to attract investors to the significant opportunities that exist in the sector.
And the
Brookings Institute took a look at
recent economic trends on the continent and considered whether they signal an end to the narrative of Africa's rise. At a recent event held by the institution, panelists concluded that was not the case - rather this is a time for reflection and change on the continent. They review some of the more effective strategies countries can explore to counter the commodity price slump, improve and increase financing and leverage new sources of revenues.
As always, you can review these and other stories by scrolling down and clicking through to them below.
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| Masonite, now owned by Jacobs Capital and Black Bird Capital, to benefit from an investment and recap program worth R300 million |
Private Equity
DOB Equity takes minority stake in Twiga Foods
Africa-focused private equity firms 8 Miles and African Capital Alliance are joining forces with German DFI DEG to invest $80 million in Beloxxi for a significant minority stake. The capital will be used by the Nigerian biscuit manufacturer to help it ramp up production and satisfy significant levels of unmet demand in the country as well as the broader West African region.
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Private Equity
Jacobs Capital and Partners back Masonite with R300mln
Masonite, which was once the oldest company listed on the Johannesburg Stock Exchange prior to its acquisition by South African private equity investor Jacobs Capital and partner Black Bird Capital as part of a business rescue, is set to benefit from an investment and recapitalization program of over R300 million from its new owners. The addition of the Masonite business to Jacobs Capital portfolio marks the third large investment by the group in the last year.
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Private Equity
Advtech strengthens sector position with 2 acquisitions
Listed private education company ADvTECH reported its interim results for the first six months of the year last week. As part of the announcement, the South African-headquartered company revealed that it has made two acquisitions during the period - a full buyout of Capsicum Culinary School and a stake in distance learning specialist Oxbridge Academy. No financial details for either deal were disclosed. In July, the IFC announced that it had spent $22 million for a 4% stake via a private placement.
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Afinitas seeds Adventis with $2.5mln
Afinitas, the investment company founded by Rupert McCammon in 2015 and listed on the venture capital board of the Botswana Stock Exchange, is investing $2.5 million in Adventis, a new African financial services company which will be incorporated in Jersey. Afinitas will own 66.6% of the new entity with the balance owned beneficially by the Adventis's new Managing Director designate, Joseph Rohm.
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This week's issue supported by...
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Policy, Regulation & Compliance...
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Mobile spectrum
Hybrid approach best for spectrum sales
As South Africa's communications regulator, Icasa, looks to manage spectrum sales for South Africa's planned 4G roll-outs, Romeo Kumalo, CEO of investment holding company Washirika, calls for "big-picture thinking" to make sure that a fair and equitable outcome to the process is achieved.
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Oil & Gas
Opportunity-rich, Africa's Oil & Gas sector needs overhaul
Speaking at the launch of PwC's "Africa Oil & Gas Review 2016", the management consultancy's advisory leader for Africa, Chris Bredenhann said that, in spite of low oil prices, now is the time for the continent's governments to overhaul their regulatory, fiscal and licensing systems to attract investors to the significant opportunities that exist in the sector.
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Trends
EMPEA data finds private capital investment declines in 1H2016
The Emerging Markets Private Equity Association released the statistics for private capital investment in the first half of the year last week. The data show an overall decline in investment in the regions, a result of what the industry body calls "sluggish activity in China and other larger markets." Africa was not immune either, with both the MENA region and Sub-Saharan African region posting fundraising and investment declines.
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Perspectives
Should Africa's governments expect economic stagnation
A review of recent economic trends on the continent and whether they signal an end to the narrative of Africa's rise. A recent event held by the Brookings Institution concludes not - rather this is a time for reflection and change on the continent. A look at some of the more effective strategies countries can explore to counter the commodity price slump, improve and increase financing and leverage new sources of revenues.
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Perspectives
Matching impact investment and philanthropy goals
According to U.S. Trust's May 2016 Wealth and Worth Survey, 56% of respondents said they were uninterested in impact investing due to fears of dilution of or conflict with their philanthropic goals. The article looks at how the two are not at odds as much as they may seem.
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Companies, People & Profiles...
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People
Standard Chartered Private Equity reshuffles ranks
According to reports last week, Peter Baird, head of Standard Chartered Private Equity in Africa and Yemi Osindero, head of the company's West Africa Private Equity business are both set to leave the bank as it trims its private equity team on the continent. The group will now have eight Africa specialists working on its private equity business.
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Senior or Principal Investment Officer at the IFC
Based in Washington, DC, USA
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Investment Officer, Private Equity Real Estate at ACA
Based in Lagos, Nigeria
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Investment Associate, Impact Investments at CDC
Based in London, United Kingdom
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Private Equity Analyst at ACA
Based in Lagos, Nigeria
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Analyst VP, Sub-Saharan Banks at Renaissance Capital
Based in Lagos, Nigeria
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Investment Manager, Intermediated Equity, Impact Fund at CDC
Based in London, United Kingdom
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Based in Johannesburg, South Africa
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Based in Johannesburg, South Africa
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Cape Town, November 29th to December 1st, 2016
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The Global African Investment Summit Kigali
Kigali, September 5th to September 6th, 2016
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London, September 14th to September 16th, 2016
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3rd Africa Alternative Investment Intensive
New York, September 19th to September 20th, 2016
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Lagos, September 20th, 2016
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Tanzania Infrastructure & New Energy Investment
Dar es Salaam, September 21st, 2016
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Kenya International Renewable Energy Congress
Nairobi, October 3rd to October 5th, 2016
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8th Africa PPP Conference & Showcase
London, October 24th to October 26th, 2016
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Dubai, October 24th to October 26th, 2016
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Sub-Saharan Africa Power Forum 2016
Cape Town, October 26th to October 28th, 2016
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International Islamic Banking Summit Africa
Djibouti, November 2nd to November 3rd, 2016
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3rd Annual Infrastructure Project Financing Africa
Nairobi, November 7th to November 9th, 2016
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Investing in Emerging Markets Summit
Johannesburg, November 16th to November 17th, 2016
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14th Annual African Capital Markets Conference
Cape Town, November 30th to December 1st, 2016
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The Global African Investment Summit London
London, November 30th to December 1st, 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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Copyright © 2016 Rowayton Press, LLC. All Rights Reserved.
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