August 28th, 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...             
The Week in Brief...
African Rainbow Capital grabbed the headlines in Africa's private capital markets last week by unveiling its plans to list some of its portfolio on the Johannesburg Stock Exchange in September. ARC Investments, as the listed entity will be known, will include almost half of ARC's financial services assets and all of the firm's non financial services interests which include its investments in the agriculture and telecommunications sectors. The offering is expected to raise about R4 billion or approximately $307 million.

The other private equity-related deals of the week were much smaller in scale. Long4Life, a listed investment holding company, which was launched earlier this year by BidVest founder Brian Joffe, has agreed to acquire Inhle Beverages from the Botha family for a maximum consideration of R360 million or $27 million. Inhle is now the second largest beverage co-packaging business in South Africa, employing some 300 people, and the deal is an opportunity, in Joffe's words, "to build a beverage business of scale, through both organic growth and bolt-on acquisitions."

There was a trio of DFI-related investments of note last week. Of the three, the largest sees the IFC considering a $40 million senior secured A Loan to Acorn Holdings, a new real estate development firm which is owned on a 50-50 basis by entities backed by Acorn Investments and Helios Investment Partners. The proposed financing supports a $72 million project to build 3,800 units of student housing in Nairobi.

In the second, The Nordic Development Fund and Norfund have agreed to invest a combined total of $19 million in an energy-focused investment platform owned by development asset manager responsAbility Investments. The capital will be targeted at small and renewable energy projects across sub-Saharan Africa, typically with up to 50MW in generating capacity.

And thirdly,  Arise, the financial services platform launched earlier this year, is taking over the stakes in NMBZ Holdings belonging to FMO and Norfund. Arise now owns 69.14 million shares in the Zimbabwean banking group, which at the market close on Friday, values the stake at approximately $3.7 million.

In the venture space, there were two deals reported. Secha Capital VCC, a 12J investment vehicle, is backing Stoffelberg Biltong in an undisclosed deal. Secha Capital views South Africa's biltong market as being large, defensible, fragmented and, surprisingly, but importantly, dormant. As such, the firm sees an opportunity to build a producer of high quality products and reinvigorate the market.

Feastfox, a mobile app which caters to what it terms the "spontaneous eating out" market, has raised $175,000 from a group of angels, among whom are several Silicon Valley investors making their first Africa-related investment.  The app was developed initially at Stanford University in Palo Alto and now has additional presence in Cape Town and Budapest. The city, restaurants and consumers of Cape Town are seen as a critical component of the app's proof of concept.

Finally, we're publishing a couple of interesting perspective pieces from law firms that we found last week. Hogan Lovells discusses whether Africa's mining and natural resources sector is becoming uninvestable. And Webber Wentzel outlines how South Africa's private equity landscape needs to adapt if it is to facilitate seamless investment and divestment in the continent's jurisdictions.

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

 African Rainbow Capital's Johan van der Merwe. The firm's looking to raise R4 billion on the JSE
Image Credit: African Rainbow Capital
Deals and Deal News...
Private Equity
African Rainbow Capital unveils JSE listing plans
African Rainbow Capital formally announced its plans to list on the Johannesburg Stock Exchange in September
Private Equity
Long4Life buys Inhle Beverages in R360mln deal
Long4Life has agreed to acquire Inhle Beverages from the Botha family and the firm's management for a maximum consideration of R360 million.
Private Equity
Arise takes over DFI stakes in NMBZ
Arise, the financial services investment platform launched by a consortium of European DFIs and lenders earlier this year, has taken over the stakes in NMBZ Holdings belonging to FMO and Norfund.
Venture Capital
Secha Capital backs Stoffelberg Biltong
Secha Capital, the South African impact investment fund manager, is backing Stoffelberg Biltong in an undisclosed deal.
Venture Capital
Feastfox raises round from Silicon Valley angels
Feastfox, a mobile app which caters to what it terms the "spontaneous eating out" market, has raised $175,000 from a group of angels.
This week's issue supported by...             
NigeriaCom 2017
Projects & Portfolio Companies...
Housing
IFC considers loan for new Helios-Acorn real estate firm
The IFC is considering a senior secured A Loan for Acorn Holdings, a new real estate development firm owned on a 50-50 basis Acorn Investments and Helios Investment Partners.
Renewable Energy
Norwegian DFIs back responsAbility-owned company
Two Norwegian development finance institutions  are backing an energy-focused investment platform owned by development asset manager, responsAbility Investments.
Regulation, Policy & Compliance...
Regulation
PE and South Africa's HQ company regime hurdle
With the increasing appetite for investments into African jurisdictions, the South African private equity landscape needs to adapt in order to attract direct foreign investment and to facilitate the seamless investment and divestment in and from these jurisdictions.
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Sectors & Strategies...
Mining
Investability of mining and natural resources sector
While the investability of many countries in Africa continues to improve, questions about the net benefits mining delivers are increasing in volume. This article from Hogan Lovell's looks at why.
Venture Capital
IFC Venture Capital's bets in Africa
As the IFC starts to ramp up its venture investment activity in frontier markets, How we made it in Africa talks to IFC Venture Capital's regional head for Africa, Olawale Ayeni, about startup investment opportunities in he continent.
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ESG
How ESG-ready are 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.
This week's issue supported by...             
Powering Africa Nigeria
Current Job Postings...
This week's featured jobs...             
Chief Executive Officer of Africa Venture Philanthropy Association  // ivpc.global
Based in Nairobi, Kenya
Principal, Investment Advisory at CrossBoundary  // crossboundary.com
Based in Nairobi, Kenya
Group Manager at Equinoxe Alternative Investment Services  // equinoxeais.com
Based in Ebene, Mauritius
Account Manager at Equinoxe Alternative Investment Services  // equinoxeais.com
Based in Ebene, Mauritius
Executive, Development Impact (Financial Institutions) at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate at CrossBoundary  // crossboundary.com
Based in Washington, DC, United States
Investment Associate at CrossBoundary  // crossboundary.com
Based in Johannesburg, South Africa
Investment Associate at CrossBoundary  // crossboundary.com
Based in Bamako, Mali
Investment Associate at CrossBoundary // crossboundary.com
Based in Nairobi, Kenya
Upcoming Conferences...
Highlighted Event...             
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Power Nigeria 2017
Lagos, September 5th to September 7th, 2017 
Nigeria Com 2017
Lagos, September 20th to September 21st, 2017 
Bonds, Loans & Sukuk Kenya Briefing Day 2017
Nairobi, October 3rd, 2017 
Powering Africa: Nigeria 2017 
Abuja, October 4th to October 5th, 2017 
New this week...
Africa Private Wealth Forum 
Casablanca, October 4th to October 5th, 2017 
New this week...
4th Agrique Africa Investment Summit 
Frankfurt, October 24th to October 25th, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 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 free, 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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