August 7th, 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 acunningham@africacapitaldigest.com
This week's issue supported by...             
SuperReturn Africa 2017
The Week in Brief...
Technology and venture capital deals were a major theme in Africa's private capital markets last week.Throw in a couple of retail-related transactions and you pretty much have the week's activity in a nutshell.

African Rainbow Capital has agreed to take a 20% stake in Rain, formerly known as Wireless Business Solutions until June this year. The South African LTE-Advanced fixed and mobile network provider which is owned by Multisource Group has aggressive site and base station roll out goals and the new funding will help ensure it stays on that trajectory. How much they're paying for the stake was not disclosed.

At the smaller, venture-end of the scale, Flutterwave, a payments infrastructure provider for banks and businesses in Africa, has raised over $10 million for its Series A round from a group of investors led by Greycroft Partners and Green Visor Capital. It's a young company, only founded last year, but already it's processed over 10 million transactions worth $1.2 billion. The fresh funding will be used to recruit additional team members, further develop its operational capabilities and expand further across the continent.

Traditionally MENA-focused venture capital investor Wamda Capital is making its first investment in East Africa and leading a $10.3 million debt/equity Series A round in Twiga Foods, a mobile-driven supply platform for retail outlets, kiosks and market stalls in Kenya. They join T wiga's roster of banner venture investors which include  DOB Equity, AHL  Ventures and Omidyar Network among their number. Wamda's Fadi Ghandour, who takes a seat on the company's board, shared that we should look to see more deals from them in the region, "...in which we plan on being increasingly more active."

In a more traditional retail distribution deal, Investec Asset Management and RMB Ventures seem to be planning to acquire the stakes in Kamoso Distribution owned by Standard Chartered Private Equity and Development Capital Partners. The deal would give the South African private equity investors a combined 72% holding in the company. The firm was bought by an investor consortium led by Standard Chartered Private Equity in 2015  in a deal reportedly valued at $45 million.

Aureos East Africa Fund, a 2003 vintage fund which joined The Abraaj Group's stable of funds following the acquisition of Aureos Capital in 2012, has agreed to sell its 5.53% stake in Nairobi Stock Exchange-listed retailer, Deacons East Africa, to Centum Investments in an undisclosed deal. The company sells a variety of own brand and franchised international fashion, home style and sports and clothing brands through stores across East Africa.

MHMK Infratech, a new infrastructure investment, development and advisory entity founded by Brainworks Capital founder George Manyere has raised $200 million in an initial round of financing. The firm, which is ultimately targeting $1 billion, is looking to invest in a wide range of infrastructure projects in Zimbabwe. plans to back the development of key infrastructure assets including roads, airports, bridges, transport, energy, border posts and water sectors, using Private Public Partnership structures in partnership with Zimbabwe's government.

Finally, the U.S. Senate confirmed Ray Washburne and David Bohigian to be, respectively, the President & CEO and the Executive Vice President of OPIC, the U.S. Government's development finance institution, a the end of last week. Both were nominated for the roles by President Trump in late June, a move that was interpreted by many that the future of the agency, which the Trump administration had indicated it wanted to be wound down, would now be safer.

That's it for this week.  As always, you can review these and other stories by scrolling down and clicking through to them below.  

Wamda Capital ventures south of the Sahara to lead Twiga Foods' $10.3 million Series A
Deals and Deal News...
Private Equity
African Rainbow Capital acquires 20% stake in Rain
African Rainbow Capital, the financial services and private equity firm set up by Patrice Motsepe, is acquiring a 20% stake in Rain, a fixed and mobile data network provider which was acquired by the Multisource Group in late 2015. Terms of the deal were not disclosed.
Private Equity
Investec and RMB to buy Kamoso Distribution stake
Investec Asset Management and RMB Ventures are planning to acquire the stakes in Kamoso Distribution owned by Standard Chartered Private Equity and Development Capital Partners. The deal gives the South African private equity investors a combined 72% holding in the company.
Private Equity
Abraaj-managed Aureos fund to exit Deacons stake
Aureos East Africa Fund, a 2003 vintage fund which joined The Abraaj Group's stable of funds following the acquisition of Aureos Capital in 2012, has agreed to sell its 5.53% stake in Nairobi Stock Exchange-listed retailer, Deacons, to Centum Investments in an undisclosed deal.
Venture Capital
Wamda Capital leads Twiga Food's $10.3mln Series A
Wamda Capital, a MENA-focused venture capital investor, is making its first investment in East Africa and leading a $10.3 million debt/equity Series A round in Twiga Foods, a mobile-driven supply platform for retail outlets, kiosks and market stalls in Kenya.
Venture Capital
Greycroft and Green Visor back Flutterwave with $10mln
Flutterwave, a payments infrastructure provider for banks and businesses in Africa, has raised over $10 million for its Series A round from a group of investors led by Greycroft Partners and Green Visor Capital
Funds & Fundraising News...
Infrastructure
Manyere's MHMK Infratech holds $200mln close
MHMK Infratech, a new infrastructure investment entity set up by Brainworks Capital founder George Manyere, has reportedly raised $200 million in an initial round of financing. The firm, which is ultimately targeting $1 billion, is looking to invest in a wide range of infrastructure projects in Zimbabwe.
This week's issue supported by...             
AfCD Sub image
Attention all Africa Capital Digest readers  
Changes are on the way...  

Gosh, how time flies. It's been three years since the first issue of Africa Capital Digest first wended its way out into the ether. Since them, this weekly newsletter has morphed into the  comprehensive source of original and curated content read by thousands from all over the world working in  and tracking Africa's  private capital marke ts.   Thank  you for being one of them and for  helping make it such a  succ ess .  

The nex t stage of our evolution is now upon us. Starting in  No vember , the Digest in its   current guise will cease to exist. In its place will be a m uch more robust package of  content for you, with the current deals, fundraising, portfolio  company and  people moves news buttressed with additional features and analy sis on private capital investments on the continent,  presen ted  in text, audio and ultimately, video. Unfortu nately, this all costs, so I am  asking  everyone and their businesses  to support  our  efforts financially.  

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Th ank  you  to all of you who've told me priv ately now useful the Digest is as a weekly touchstone for the activity in the market. We'll  continue   t o  deliver on that  promise  to you, the  reader, in the years to come.
 
Be st  Wishes,  

Allan Cunningham  
Editor &   Pub lisher  
 
PS If you'd like to discuss a group deal for your  colleag ues  and teams, please shoot me an email today.

Sectors & Strategies...
Fintech
Africa's Fintech sector increasingly attractive to investors
A useful review of some of the companies and venture capital deal activity taking place in Africa's fintech sector and their appeal for investors.
Trends & Perspectives...
Perspectives
Venture capital tweaks to help African entrepreneurs
A couple of suggestions from Kurt Davis, who is a regular contributor to AFK Insider, as to how changes in venture capital's approach to the continent could help embolden Africa's tech entrepreneurs.
Perspectives
Misplaced promise of Africa's mobile revolution
In the Summer 2017 issue of The Breakthrough Journal, Calestous Juma, a Professor of international development at Harvard University discusses the reality behind Africa's significant potential offered by technological catch-up and leapfrogging. With a few exceptions, that promise is still largely unfulfilled.
Companies, People & Profiles...
People
Noor Kapdi to be CEO for Dentons's new Africa region
In the second Africa-related move in as many weeks, Dentons has appointed Noor Kapdi as CEO of the international law firm's Africa region, which had formerly fallen under the UK, Middle East and Africa region and has now been established as a stand-alone business, both structurally and from a governance perspective.
People
U.S. Senate confirms OPIC's new leadership
At the end of last week, the U.S. Senate confirmed Ray Washburne and David Bohigian to be, respectively, the President & CEO and the Executive Vice President of the U.S. Government's development finance institution, OPIC.
Current Job Postings...
This week's featured jobs...             
Chief Executive Officer of Africa Venture Philanthropy Association  // ivpc.global
Based in Nairobi, Kenya
Chief Investment Officer, Energy Financial Solutions at AfDB  // afdb.org
Based in Abidjan, Côte d'Ivoire
Investment Director & Team Lead, DFID Impact Accelerator Fund at CDC  // cdcgroup.com
Based in London, United Kingdom
Senior Investment Officer at AfDB  // afdb.org
Based in Abidjan, Côte d'Ivoire
Investment Officer, Agribusiness, Food & Water (Africa) at FMO  // fmo.nl
Based in The Hague, Netherlands
Investment Officer at African Capital Alliance  // acagp.com
Based in Lagos, Nigeria
Executive, Development Impact (Financial Institutions) at CDC  // cdcgroup.com
Based in London, United Kingdom
Corporate Finance Analyst at J.P. Morgan  // jpmorganchase.com
Based in Johannesburg, South Africa
Portfolio Assistant at IFC  // ifc.org
Based in Johannesburg, South Africa
Upcoming Conferences...
Highlighted Event...             
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 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 
Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017 
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 2017 
AfricaCom 2017
Cape Town, November 7th to November 9th, 2017 
New this week...
International Islamic Banking Summit Africa 
Djibouti, November 8th to November 9th, 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 
New this week...
9th Africa Public Private Partnership Conference 
Cape Town, November 23rd to November 24th, 2017 
New this week...
Gas Options North & West Africa 
Marrakech, November 29th to November 30th, 2017 
New this week...
Africa Renewable Energy Forum 
Marrakech, 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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