Africa Deal Roundup: 15 deal, fundraising and exit announcements in November
This article is published in association with Africa Private Equity News, a one-stop source for industry-related information. Stay up to date by downloading the free Africa Private Equity News app: Android | iOS | www.africaprivateequitynews.com.
A selection of African private equity deal, fundraising and exit announcements that came across our desk in November 2020.
Development Partners International, CDC Group and the European Bank for Reconstruction and Development have joined forces to create a major new player in the pan-African pharmaceuticals industry. The three founding investors have committed an initial $250 million of capital that have been used to fund the acquisition and combination of Adwia Pharmaceuticals, an Egyptian generic drugs manufacturer, and Celon Laboratories Pvt, an Indian oncology and critical care specialist.
Harith General Partners, one of Africa’s largest infrastructure-focused private equity fund managers, has acquired a significant equity stake in Zimborders Mauritius, the developer of the Zimbabwe Beitbridge border post complex situated on the border between South Africa and Zimbabwe. The Pembani Remgro Infrastructure Fund, an equity investor in infrastructure opportunities across Africa, is a co-investor in the project.
Zebu Investment Partners has closed a $6.5 million investment in AMC Trade Finance (AMCTF) through its sophomore Africa Food Security (AFS) fund. AMCTF is a specialist trade finance institution, providing bespoke, secured and structured trade finance solutions for Africa-focused trade. The investment from AFS is a combination of equity and preference shares.
Development Partners International, a pan-African private equity firm, has announced the signing of Compagnie Marocaine de Goutte à Goutte et de Pompage’s (CMGP) landmark combination with Comptoir Agricole de Souss (CAS), creating a major new player in the Moroccan and African agricultural industry with combined sales of MAD 1.6 billion ($175.6 million). CMGP is an African provider of irrigation solutions and water infrastructure, with operations across Morocco and West Africa. CAS is one of the leading players in the agri-supply sector in Morocco, operating in three segments: irrigation, crop protection, and seeds and fertilisers.
AfricInvest, a pan-African mid-cap-focused private equity firm, has acquired a minority stake in Fidelity Bank Ghana Limited. The purchase was made through its two funds, AfricInvest Fund IV and FIVE (AfricInvest Financial Inclusion Vehicle).
Pan-African alternative investment firm, EXEO Capital, together with Stellenbosch Graduate Institute (SGI) – a specialist provider of online higher education – have made a joint acquisition of Pearson Institute of Higher Education, which has 12 campuses across South Africa.
Regional private equity firm Africa Capital Alliance (ACA), through its Capital Alliance Private Equity IV (CAPE IV) fund, has invested $20 million in Accelerex. Accelerex, which is the parent company of African fintech powerhouse, Global Accelerex Limited, was set up for investment into digital financial technology companies across Africa.
African Infrastructure Investment Managers (AIIM), one of Africa’s largest infrastructure-focused private equity fund managers, has acquired a minority equity stake in MetroFibre Networx, a South African open-access fibre network operator, through the newly incorporated Digital Infrastructure Investment Holdings platform. The transaction sees AIIM, STOA and South African Housing & Infrastructure Fund partner with remaining shareholders of MetroFibre, including Sanlam Private Equity and African Rainbow Capital.
Kuda, the Lagos and London based fintech building a pan-African digital challenger bank, has closed a $10 million fundraise. The seed round was led by Target Global, one of Europe’s leading venture capital firms, with participation from Entrée Capital and SBI Investment. Other fintech founders and angel investors also participated in the round.
Chicoa Fish Farm, a Mozambican-based company addressing the critical challenge of a lack of affordable protein in Southern Africa, has signed a series A equity funding round totalling $1.5 million from Goodwell Investments.
Dutch development financier FMO is proposing an €18 million investment in the Africa Renewable Energy Fund II (AREF II), a private equity fund investing in clean energy generating assets across sub-Saharan Africa (excluding South Africa). The fund is managed by Berkeley Energy and is expected to reach first close in 2020.
BlueOrchard Finance, an impact investment manager and member of the Schroders Group, has launched the BlueOrchard Covid-19 Emerging and Frontier Markets MSME Support Fund. The fund will provide support funding to financial institutions and is expected to finance 20 institutions, serve three million micro-entrepreneurs and maintain 60 million jobs per each $100 million. The fund has a target size of $350 million and is backed by CDC, DFC and JICA.
The African Development Bank has approved a $5 million investment in the SPARK+ Africa Fund to deliver clean cooking solutions to over two million households across Africa. The bank’s investment, which will come from its Sustainable Energy Fund for Africa (SEFA), is expected to enable the participation of other interested investors.
CrossBoundary Energy announced the exit of its first fund at a 15% net IRR to investors. ARCH Emerging Markets Partners’ Africa Renewable Power Fund (ARCH ARPF) is providing $40 million in new equity funding to exit initial investors and support CrossBoundary Energy to continue to develop, construct and operate distributed commercial & industrial (C&I) solar projects that will provide businesses across Africa with access to cheaper and cleaner power. CrossBoundary Energy I was closed in November 2015 as Africa’s first dedicated fund for C&I solar.
Private equity firm AfricInvest has sold its shares in Hydrosol Fondations, a Tunisian geotechnical and foundation engineering company, to Ginger Group, a French leader in prescription engineering. Ginger Group already owned 30% of the shares in Hydrosol Fondations.