October 9th, 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 deals and industry news which was reported over the past 7 days. W e'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 acunningham@africacapitaldigest.com
This week's issue supported by...             
Augentius Summer Survey
The Week in Brief...
Private capital deal activity had a distinctly SME flavor last week in Africa. None of the 9-digit values we'd seen in recent weeks were to be found. But the firms doing the deals included some of the continent's leading investors all the same.

responsAbility Investments, the development asset manager, featured once again this week following last week's debt deal with Mobisol. This time, they headed north of the Sahara, backing Egyptian mobile payments platform Fawry on behalf on one of their private equity funds. Terms weren't disclosed. The investment puts them in good company, however. Helios Investment Partners led a consortium that acquired a majority stake in Fawry in 2015, which at the time, valued the company at $100 million.

New York-based Kuramo Capital Management has participated in a $17.5 million private placement for Feronia Inc, an agribusiness operating in the Democratic Republic of Congo. The deal is being done on behalf of a consortium made up of several of Kuramo's funds and Congolese entrepreneur Kalaa Mpinga's investment vehicle, Mafuta Investment Holdings.  At the core of Feronia's portfolio is its palm oil business, Plantations et Huileries du Congo, which it acquired from Unilever in 2009.  The firm's plantations produce crude palm oil and palm kernel oil, providing livelihoods for more than 8,000 people who are either directly or indirectly employed by the company.

Continuing at its recent pace of investments, AFIG Funds is making a follow-on investment in Primrose Properties Ghana on behalf of its first fund, the Atlantic Coast Regional Fund. The private equity firm first backed the real estate development company in 2015 and has been inspired to invest again following the success of the fund's initial investment in Rhombus, a six-storey Grade A commercial office and residential project located in Kanda, Accra. This time the capital will be used to develop a middle-income housing community in Sakumono.

Novamed, the healthcare platform backed by Amethis Finance has completed its acquisition of one of Burkina Faso's largest private hospitals from its owners, the facility's medical team.  Polyclinique Internationale de Ouagadougou or PCIO for short is one Burkina Faso' s larger private cardiology units, with almost fifty beds. The Novamed acquisition will allow the hospital to increase its investment in its technical facilities, turning it into one of the region's leading centres of expertise and attracting the best medical personnel and a regional set of customers to its services.

Staying with the healthcare sector, Rx Healthcare Fund, a new private equity fund raising $200 million has landed GE Healthcare as an anchor Limited Partner. The firm, which is headed up by a former Egyptian Minister of Health, Dr. Hatem El Gabaly, will target high growth opportunities in the healthcare sectors, with an emphasis on specialized hospitals, medical diagnostics and pharmaceuticals businesses. The amount of capital for what is described as a minority investment was not disclosed.

Making its second investment in a permanent capital vehicle in as many months, CDC is backing African Capitalworks with $40 million. In early September, you may remember that the UK development finance institution committed $20 million to Solon Capital Holdings, an investment holding company based in Sierra Leone. Africa Capitalworks is a planned $300 million investment company that will target mid-market opportunities in a number of sectors across sub-Saharan Africa outside South Africa. The vehicle was set up in September by Capitalworks, one of Africa's larger private equity firms and will be directed by Beth Mandel and Nana Sao.

FMO, the Dutch development bank, has agreed to back the African Local Currency Bond with a $10 million long-term loan.  The fund aims to improve access to financing for the continent's companies by mobilizing domestic capital to invest in local currency bonds. invests up to $5 million in any given issuance, targeting non-Sovereign bonds whose proceeds promote financial inclusion, housing finance, renewable energy, agriculture and supply chain finance. Ultimately, the fund aims to have a total of $150 million in committed capital by the end of this year, which it plans to deploy by the end of 2018.

EBRD is mulling a €20 million commitment to Maghreb Private Equity IV, a planned €200 million sector-agnostic closed end fund managed by AfricInvest, the Africa-focused private equity fund manger headquartered in Tunis. The fund, which has a hard cap of €275 million, will target growth capital opportunities in small and medium-sized businesses in Tunisia, Morocco, Algeria and Egypt.  If approved, the commitment would be the second made to an AfricInvest fund by the EBRD, who backed the fund's predecessor, Maghreb Private Equity III in 2012.

There were some interesting people moves announced this week. Idris Mohammed, a partner at DPI for the past 10 years, has joined Carlyle as a Managing Director of their Sub-Saharan Africa Fund. He'll be based in Lagos and focus on West and North African opportunities.  Meanwhile, Héla Cheikhrouhou,  Tunisia's former Minister of Energy, Mining and Renewables is joining Kupanda Capital as a Senior Partner to lead the firms energy and infrastructure investment and advisory initiatives. And, following Fairfax Africa's investment, Atlas Mara has shuffled its Board of Directors. Fairfax Africa, which owns over 40% of the company, now has board representation, and is joined by two senior banking executives thereby allowing a couple of Atlas Mara's founding directors to step back from their board responsibilities.

Finally, in one of their special reports, the Financial Times explores Mauritius's economy, opportunities and challenges as the island nation positions itself as a hub for global investors looking for opportunities in Africa.

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

responsAbility Investments becomes latest private equity investor to back mobile payments platform Fawry
Image Credit: Fawry
Deals and Deal News...
Private Equity
responsAbility backs Fawry in undisclosed deal
responsAbility Investments is backing Fawry, an Egyptian mobile payments platform, in an undisclosed deal on behalf on one of its private equity funds.
Private Equity
Kuramo in $17.5mln Feronia private placement
Kuramo Capital Management has participated in a $17.5 million private placement for Feronia Inc, an agribusiness operating in the Democratic Republic of Congo.
Private Equity
AFIG Funds in follow-on deal for Primrose Properties
AFIG Funds, is making a follow-on investment in Primrose Properties Ghana on behalf of the Atlantic Coast Regional Fund.
This week's issue supported by...             
Public Private 2017 Cape Town
Funds & Fundraising...
Private Equity
Africa Capitalworks lands $40mln from CDC
Making its second investment in a permanent capital vehicle in as many months, CDC is backing African Capitalworks with $40 million.
Private Equity
Rx Healthcare Fund adds GE Healthcare to LP roster
Rx Healthcare Fund, a new private equity fund raising $200 million for investments across Africa, has landed GE Healthcare as an anchor Limited Partner.
Private Equity
FMO backs ALCB fund with $10mln loan
FMO, the Dutch development bank, has agreed to back the African Local Currency Bond with a $10 million long-term loan.
Private Equity
EBRD considers €20mln commitment to AfricInvest fund
The European Bank of Reconstruction and Development or EBRD is mulling a €20 million commitment to Maghreb Private Equity IV.
Projects & Portfolio Companies...
Private Equity
Amethis-backed Novamed completes PCIO deal
Novamed, the healthcare platform backed by Amethis Finance, has completed its acquisition of one of Burkina Faso's largest private hospitals from its owners, the facility's medical team.
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And carry on reading what's being read by the who's who involved in Africa's private capital deal markets.
Sectors & Strategies...
Perspectives
Special Report: Investing in Mauritius
As the island nation positions itself as a hub for global investors looking for opportunities in Africa, the Financial Times special report explores the country's economy, opportunities and challenges.
Kudos Image
ESG
ESG-readiness of Africa's unlisted companies?
KudosImpact Pulse, a groundbreaking survey assessing and analyzing the extent to which Africa's unlisted companies are adopting ESG best practices, is inviting you and your private portfolio companies to take part, in confidence. The results, to be published in December in association with Africa Capital Digest, will be eagerly anticipated. To take part in this year's survey, click here today.
Private Equity
African private equity managers ride out the storm
Commodity price swings and currency devaluations have taken their toll on Africa's private equity investments making investors focus on companies that benefit from strong domestic demand or overseas customers attracted by weak exchange rates.
Trends & Perspectives...
Trends
Lions still on the move in Africa's consumer sector
With Africa's growth concentrated in a few markets and income segments, McKinsey article emphasizes the need for investors and companies to take a tailored, data-driven approach .
Perspectives
Where should the Gulf invest in Africa?
In an opinion piece for Arabian Business, Roddy McKean of Anjarwalla & Khanna discusses the opportunities offered to private equity investors by the continent.
Perspectives
Sovereign Wealth Funds and Africa's challenges
A look at how Africa's sovereign wealth funds must safeguard their nation's wealth as well as secure inter-generational equity .
This week's issue supported by...             
Companies, People & Profiles...
People
Carlyle taps DPI's Mohammed as MD for Africa fund
Idris Mohammed, a partner at Development Partners International, has joined The Carlyle Group as a Managing Director.
People
Former Tunisian Energy Minister to join Kupanda Capital
Kupanda Capital is boosting its energy and infrastructure investment and advisory business with the appointment of Tunisia's former Minister of Energy, Mining and Renewables as a Senior Partner.
People
Atlas Mara's board reconstituted following Fairfax deal
Following the completion of Fairfax Africa's recent investment  in Atlas Mara, the African banking platform has shuffled its Board of Directors.
Current Job Postings...
This week's featured jobs...             
CFO & CIO at Verdant Frontiers  // verdantfrontiers.com
Based in Austin, United States
SVP, Sustainable Finance at World Wildlife Fund  // wwf.org
Based in Washington, DC, United States
Team Leader, Urban Development Program at McKinsey  // mckinsey.com
Based in Nairobi, Kenya
Investment Executive, Investment Teams at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Investment Teams at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Officer, MENA Public-Private Partnerships at IFC  // ifc.org
Based in Dubai, United Arab Emirates
Associate Investment Officer, MENA Public-Private Partnerships at IFC  // ifc.org
Based in Dubai, United Arab Emirates
Transaction Advisor, Energy at CrossBoundary  // crossboundary.com
Based in Johannesburg, South Africa
Investment Analyst, Infrastructure at IFC  // ifc.org
Based in Johannesburg, South Africa
Associate, Africa Delivery Hub at McKinsey  // mckinsey.com
Opportunities in Addis Ababa, Casablanca, Lagos and Nairobi
Associate at McKinsey  // mckinsey.com
Based in Johannesburg, South Africa
Upcoming Conferences...
Highlighted Event...             
New this week...
Sharm El Sheikh, December 7th to December 9th, 2017 
4th Agrique Africa Investment Summit 
Frankfurt, October 24th to October 25th, 2017 
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 2017 
New this week...
AfricArena 2017 
Cape Town, November 6th to November 7th, 2017 
AfricaCom 2017
Cape Town, November 7th to November 9th, 2017 
International Islamic Banking Summit Africa 
Djibouti, November 8th to November 9th, 2017 
Sub Saharan Africa Power Summit
Lusaka, November 8th to November 10th, 2017 
Bonds, Loans & Sukuk Nigeria Briefing Day 2017
Lagos, November 20th, 2017 
African Agri Investment Indaba 2017
Cape Town, November 20th to November 22nd, 2017 
9th Africa Public Private Partnership Conference 
Cape Town, November 23rd to November 24th, 2017 
Gas Options North & West Africa 
Marrakech, November 29th to November 30th, 2017 
Africa Renewable Energy Forum 
Casablanca, November 30th to December 1st, 2017 
SuperReturn Africa
Cape Town, December 4th to December 6th, 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 a free trial, for the moment,  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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