November 13th, 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 a time-limited free trial, 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...             
Morocco Gas Options
The Week in Brief...
Sector-wise, deal activity in Africa last week was all over the map. Consumer, Financial Services, Industrial, Mobile, Tech and others all saw some activity and they ranged in size.

We lead with Convergence Partners' deal for ESET Southern Africa. The ICT-focused private equity firm announced it is taking a significant minority stake in the software security provider on behalf of Convergence Partners I, their first fund. The transaction is expected to support ESET's push into the enterprise segment in the region as well as growth in several East African markets following Convergence Partners' recent acquisition of a stake in ESRO, the ESET distributor in that region.

Kibo Capital is making its first investment in Mozambique, backing consumer product distributor Tropigalia to take a minority stake in the business.The deal is the fifth for Kibo's second fund, which closed with $63 million in commitments in 2016. Tropigalia has operations in Mozambique's three main cities - Maputo, Beira and Nampula - distributing food and non-food FMCG products for leading brands such as Colgate-Palmolive, Pioneer Foods and others. The fresh capital will be used to support the firm's efforts to capture new exclusive distribution agreements with more global brands and add to the more that 3,000 product items it currently offers.

XSML Capital's African Rivers Fund is making its fourth investment in Uganda. The $50 million fund, which held its final close in May this year, is backing Telcare Ltd, which operates 39 kiosks and 4 shops Kampala under the Go-Phones brand. The capital will be used to support the company's expansion plans in the East African country. The company, which was started in 2005, provides its customers with mobile money transfer services using the MTN Uganda and Airtel networks as well as selling mobile associated ancillary products and services such as handsets and airtime.

DiGAME Investment Company is taking a stake in South African asset manager, 10X Investments. The subsidiary of London-based Zouk Capital is investing alongside Old Mutual Private Equity, already an existing stake holder in the tech-enabled financial services company, in a deal totaling $6.14 million. The fresh capital will be used to expand 10X Investments' retail offering further as well as explore international expansion opportunities.

South African impact investment manager Secha Capital announced that it has agreed to invest in Geestep, a footwear company. The value of the investment remains undisclosed, but Secha Capital typically takes minority stakes in its investments, spending up to R5 million. The deal is the third for Secha Capital VCC, the firm's 12J investment vehicle launched in partnership with Caleo Capital in May this year.

Frontier Digital Ventures has acquired three online property classifieds portals from Jumia which compete with its portfolio companies in Ghana, Nigeria and Angola. The deal, which sees Frontier exchange Afribaba, its listings portal for francophone Africa, and $500,000 in cash for the three assets, will create three market leaders as Frontier merges all traffic, listings, agents, advertisers and revenues from these businesses with its existing portals meQasa in Ghana, ToLet in Nigeria and AngoCasa in Angola.

There were a couple of portfolio company-related deal items this week. Kutana Steel, a wholly owned subsidiary of investment company Kutana Group is acquiring Saint Gobain Pipelines from industrial giant, Compagnie de Saint Gobain. Terms of the deal, which was led by Kutana's Chief Investment Officer, Anthony Barnard and Investment Principal Claire du Bourg, were not disclosed.

And Capitalworks has completed the deal to acquire insurance giant Aon's shareholding in 10 employee benefit, insurance and reinsurance brokerage operations in several sub-Saharan African countries. The deal which was originally announced in February, has now received the necessary regulatory approvals in the markets in which the business operates, and the new group has been renamed branded Minet.

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

Convergence Partners backs ESET Southern Africa in undisclosed deal
Image Credit: ESET
Deals and Deal News...
Private Equity
Convergence's first fund backs ESET Southern Africa
Convergence Partners, the private equity firm focused on ICT investment opportunities in Africa, has acquired a significant minority stake in ESET Southern Africa.
Private Equity
Kibo Capital makes first Mozambique deal
Kibo Capital Partners is making its first investment in Mozambique, backing consumer product distributor Tropigalia.
Private Equity
XSML backs Ugandan mobile money provider
XSML Capital's African Rivers Fund is making its fourth investment in Uganda.
Private Equity
DiGAME takes stake in 10X Investments
DiGAME Investment Company is taking a stake in South African asset manager, 10X Investments.
Private Equity
Secha Capital takes minority stake in Geestep
Secha Capital, a South African impact investment manager, announced that it has agreed in invest in Geestep, a footwear company.
Venture Capital
Frontier acquires property listing portals from Jumia
Frontier Digital Ventures has acquired three online property classifieds portals from Jumia which compete with its portfolio companies in Ghana, Nigeria and Angola .
This week's issue supported by...             
Africa Renewable Energy
Funds & Fundraising...
Private Equity
IFC mulls €15mln commitment to Amethis Finance II
Amethis Finance's second fund, which is currently being raised, is being considered by the IFC for a capital commitment.
Projects & Portfolio Companies...
Private Equity
Kutana Steel buys Saint Gobain Pipelines
Kutana Steel, a wholly owned subsidiary of investment company Kutana Group has acquired Saint Gobain Pipelines from industrial giant, Compagnie de Saint Gobain.
Private Equity
Capitalworks completes Aon deal and unveils Minet
Capitalworks has completed the deal to acquire insurance giant Aon's shareholding in 10 employee benefit, insurance and reinsurance brokerage operations in several sub-Saharan African countries..
Sectors & Strategies...
Manufacturing
Podcast: Chinese manufacturing in Africa
McKinsey consultant Irene Yuan Sun talks to Harvard Business Review about Chinese manufacturing entrepreneurs setting up businesses across Africa.
Healthcare
Top 5 African markets for healthcare investment
As healthcare investment starts to hit its stride in Africa, AFK Insider looks at the to five sub-saharan African countries which it feels offer investors the best opportunities.
This week's issue supported by...             
Agri Indaba 2017
Trends & Perspectives...
Perspectives
Africa's leap to cheap renewable electricity and minigrids
A piece that originally appeared in the print edition of The Economist highlighting the opportunities and efforts in Africa to generate and distribute electricity from renewable sources.
Perspectives
Nigeria's start-up scene attracts foreign investors
As Nigeria's digital economy expands spawning hundreds of new ventures, 'Bosun Tijani, Co-Creation's CEO tells the Financial Times that "serious money is beginning to hit the market."
Companies, People & Profiles...
People
Botha and Verheijen new additions to AVCA's Board
Two prominent private equity investors are joining the Board of Directors of the African Private Equity and Venture Capital Association or AVCA.
People
Mutasa rejoins DPI from KKR
Takudzwa Mutasa is leaving KKR to rejoin the Africa-focused private equity firm he left in 2015.
Current Job Postings...
This week's featured jobs...             
Chief Operating Officer at Cytonn Investments  // cytonn.com
Based in Nairobi, Kenya
Director of Project Finance at Africa50  // africa50.com
Based in Casablanca, Morocco
Senior/Principal Investment Officer at Africa50  // africa50.com
Based in Casablanca, Morocco
Investment Officer at African Development Bank  // afdb.org
Based in Abidjan, Cote d'Ivoire
Investment Officer at Africa50  // africa50.com
Based in Casablanca, Morocco
Senior Manager. Transaction Diligence at EY  // ey.com
Based in Cairo, Egypt
Relationship Manager, Institutions at Cytonn Investments  // cytonn.com
Based in Nairobi, Kenya
Investment Associate, Financial Institutions, Equity Investments at CDC  // cdcgroup.com
Based in London, United Kingdom
Investment Associate, Intermediated Equity at CDC  // cdcgroup.com
Based in London, United Kingdom
Portfolio Analyst at Phatisa  // phatisa.com
Based in Johannesburg, Abidjan or Mauritius
Investment Analyst at Africa50  // africa50.com
Based in Casablanca, Morocco
Upcoming Conferences...
Highlighted Event...             
Gas Options North & West Africa 
Marrakech, November 29th to November 30th, 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 
Africa Renewable Energy Forum 
Casablanca, November 30th to December 1st, 2017 
SuperReturn Africa
Cape Town, December 4th to December 6th, 2017 
Sharm El Sheikh, December 7th to December 9th, 2017 
2018 Events...
SAVCA 2018 Annual Conference 
Stellenbosch, February 21st to February 22nd, 2018 
Bonds, Loans & Sukuk Africa 
Cape Town, March 13th to March 14th, 2018
2nd Annual Pension Funds and Alternative Investments Africa 
Balaclava, Mauritius, March 15th to March 16th, 2018
AFSIC 2018 
London, May 2nd to May 4th, 2018
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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