May 1st, 2017
The  weekly roundup of Africa's Private Capital news


  

Here's the latest wrap of Africa's key private equity, infrastructure and venture capital news which were reported over the past 7 days.  As always, we'd be delighted if you shared it with any interested colleagues and/or business partners.  If they would like to receive their own weekly copy, they're more than welcome to sign up here.  

Many thanks for being a reader. If you have any tips, suggestions or questions, please reach out to Allan Cunningham at [email protected]
This week's issue supported by...             
The Week in Brief...
Numbers were in short supply last week. By that we mean that all of Africa's private equity deals reported came without their financial terms being disclosed. But deals there were, in all the main sub-Saharan regions.

In South Africa, Ethos Private Equity announced that it has led a deal in partnership with Nedbank Private Equity and the company's management to acquire a majority shareholding from the founders of Little Green Beverages. In support of the investment's growth strategy, former SABMiller executive Michael Benjamin has joined the compnay as its new CEO. The transaction is the ninth deal for the Ethos's sixth fund, and the South African beverage producer joins a portfolio of assets which include Autozone, Twinsaver, Eazi Access and Neopak.

Staying in the south, Investec Asset Management made its second private equity-related deal of April by exiting its mezzanine investment in SA Taxi, the South African taxi financing company which it originally backed through its first private equity fund in 2011. SA Taxi extends credit to minibus taxi owners and entrepreneurs as well as providing its clients with a range of additional services to help them manage and grow their businesses. Currently, it has financed more than 27,000 taxis and has a loan book of over R7.2 billion (approximately $538 million) in size. Investec first backed SA Taxi in 2011.

Heading north and east, Catalyst Principal Partners announced the ninth (and final) investment for its first fund, taking a significant minority stake in Kensta Group, a Kenyan-headquartered conglomerate with operations in five East African countries. The fresh capital, combined with strategic help from Catalyst, will help Kensta restructure and push growth. The firm will focus on making strategic investments in attractive sectors and geographies as well as target opportunities in value-chain development. 

On the western side of the continent, Oasis Capital Ghana is making an undisclosed private equity investment in Everpure Holdings, a water bottling company with operations in Ghana. The deal is being made on behalf of the Oasis Africa Fund, a planned $50 million vehicle that targets SME opportunities in Ghana and Côte d'Ivoire. Everpure, which was founded in 2008, produces, markets and distributes purified drinking water. The firm operates two factories in Ghana and has plans to establish a third, west of the country's capital, Accra. The capital will be used to complete the construction of the new plant as well as acquire additional equipment and support working capital.

In fundraising news, the European Investment Bank is considering a $20 million commitment to International Housing Solutions' second fund. IHS Fund II will target affordable and energy-efficient housing opportunities in sub-Saharan Africa, with a focus on Namibia and Botswana.

According to the private equity investor's website, IHS Fund II, which held a first close in July 2014, has already attracted approximately $180 million in capital from several investors. To date, the new fund has backed six projects, providing a total of 1,630 housing units. Five of the projects have used the fund's green investment facility which is designed to improve the use of energy, water and building materials in their developments.

There were some interesting perspective pieces this week. Ed Higenbottam of Verdant Capital highlights four key themes that are driving financial inclusion on the continent, which, as well as being an item at the top of Africa's development agenda, is increasingly an driver for a broad range of market participants. In an article for AFK Insider, Kurt Davis looks at how short-term volatility and uncertainty in the Africa growth story create opportunities for hedge funds. He discusses some of the sectors which should be attractive to the asset class. And as South Africa's recent credit rating downgrades are bound to have an impact on the level of M&A activity, Morne van der Merwe, a Partner at Baker McKenzie in Johannesburg, writes in BusinessDay about their likely effect and how things might evolve.

And finally, in a first, Vera Songwe, the IFC's Regional Director for West and Central Africa, has been appointed Executive Secretary of the United Nation's Economic Commission for Africa. She is the first woman to hold the position.

As always, you can review these and other stories by scrolling down and clicking through to them below.  

Refresssh
Ethos Private Equity takes a controlling stake Little Green Beverages, producer of Refreshhh! products
Image Credit: Little Green Beverages
Deals and Funds News...
Private Equity
Ethos acquires majority stake in Little Green Beverages
Ethos Private Equity, one of Africa's largest fund managers, has led a deal to acquire a majority shareholding from the founders of Little Green Beverages in partnership with Nedbank Private Equity and the company's management. Terms of the deal were not disclosed.
Private Equity
Catalyst takes significant minority stake in Kentsa
Making the ninth and final investment for its first private equity fund, Catalyst Principal Partners has acquired a significant minority stake in Kensta Group, a Kenyan-headquartered conglomerate with operations in five East African countries. Terms of the deal were not disclosed.
Private Equity
Investec exits SA Taxi mezzanine investment
Investec Asset Management has exited its mezzanine investment in SA Taxi, the South African taxi financing company which it originally backed through its first private equity fund in 2011. Terms of the deal were not disclosed.
Private Equity
Oasis Capital Ghana backs water bottler Everpure
Oasis Capital Ghana is making an undisclosed private equity investment in Everpure Holdings, a water bottling company with operations in Ghana. The deal is being made on behalf of the Oasis Africa Fund, a planned $50 million vehicle that targets SME opportunities in Ghana and Côte d'Ivoire.
Funds and Fundraising...
Private Equity
EIB mulls $20mln commitment to IHS's second fund
The European Investment Bank is considering a $20 million commitment to International Housing Solutions' second fund which will target affordable and energy-efficient housing opportunities in sub-Saharan Africa, with a focus on Namibia and Botswana.
Projects & Portfolio Companies...
Private Equity
Private Equity sparks revival at Uganda's Umeme
A review of Actis' investment in Umeme, the Ugandan utility that the emerging markets private equity firm first backed in 2005 and fully exited late last year.
This week's issue supported by...             
East Africa Real Estate
Sectors & Strategies...
Power
Financing power projects in emerging markets
As the need for emerging market countries to meet their demands of their citizens becomes ever more pressing, a look at what governments need to do to improve the viability of investment in their power sectors.  
Trends & Perspectives...
Perspectives
Driving forces behind financial inclusion
Ed Higenbottam of Verdant Capital highlights four key themes that are driving financial inclusion on the continent, which, as well as being an item at the top of Africa's development agenda, is increasingly an driver for a broad range of market participants including private equity investors, M&A advisors and entrepreneurs.
Perspectives
Time for more hedge funds in Africa?
Short-term volatility and uncertainty in the Africa growth story create opportunities for hedge funds. Kurt Davis discusses some of the sectors which should be attractive to the asset class. 
Perspectives
Market volatility will fuel M&A
South Africa's recent credit rating downgrades are bound to have an impact on the level of M&A activity. in this op-ed piece, Morne van der Merwe, a Partner at Baker McKenzie in Johannesburg examines their likely effect and how things might evolve.
Perspectives
African Private Equity trends to look out for in 2017
Africa still offers private equity investors the potential of robust returns compared to other emerging markets. A look at some of the key trends we could possibly see in the sector during 2017. 
Companies, People & Profiles...
People
IFC's Songwe appointed Executive Secretary at UNECA
Vera Songwe, the IFC's Regional Director for West and Central Africa, has been appointed Executive Secretary of the United Nation's Economic Commission for Africa. She is the first woman to hold the position.
Upcoming Investment Missions...
African Agri Council's Investor Discovery Trade Mission and Technical Tour
3 dates in 3 cities

London, May 23rd to May 25th, 2017
Hong Kong, June 21st to June 23rd, 2017

To request an invitation to one of these dates, please send an email to Julia Barton-Hill.
Current Job Postings...
Highlighted Job...             
Investment Manager, Africa at Opes Impact Fund  // linkedin.com
Based in Nairobi, Kenya
Deal Originator, Commodities for investment fund  // efinancialcareers.com
Based in Johannesburg, South Africa
Principal Policy Officers at the African Development Bank  // afdb.org
Based in Abidjan, Côte d'Ivoire
Investment Analyst at 54 Capital  // indeed.co.uk
Based in London, United Kingdom
Investment Analyst at IFC Asset Management Company  // ifc.org
Based in Washington, DC, United States
Investment Analyst at IFC  // ifc.org
Based in Cairo, Egypt
Upcoming Conferences...
Highlighted Event...             
TMT Finance Africa 2017 
London, May 24th, 2017 
Africa Financial Services Investment Conference 2017 
London, May 3rd to May 5th, 2017 
4th Annual Ghana Agribusiness Investment Summit 
Accra, May 4th, 2017 
African Nordic Business Conference 2017 
Helsinki, May 4th, 2017 
Euromoney Kenya Conference   // euromoney.com
Nairobi, May 9th, 2017 
AFC Live 2017 
Abuja, May 15th to May 16th, 2017 
IFC & EMPEA's Annual Global Private Equity Forum 
Washington, DC, May 15th to May 17th, 2017 
Zambia Renewable Energy & Power Infrastructure Investment Conference   // conventionventures.com
Lusaka, May 17th, 2017 
New this week...
Morocco Renewable Energy & Power Infrastructure Investors Conference   // conventionventures.com
Rabat, May 25th, 2017 
19th Annual Africa Energy Forum 
Copenhagen, June 7th to June 9th, 2017 
East Africa Real Estate Investor Forum 2017 
London, June 8th, 2017 
And finally...
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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