July 24th, 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...             
The Week in Brief...
Deals in Africa tended to be on the small size last week. The agribusiness and power sectors saw most of the activity, although there were a couple of financial services sector items of interest.

Sanlam Private Equity announced that it is acquiring a 60% interest in JAB Dried Fruit Products, a processor and distributor of dried fruits and nuts for markets in South Africa and overseas. A family-owned business, JAB was founded in 1979, and processes a broad range of fruits sourced from across South Africa at its 17,000 square metre processing facility in Nelspruit, Mpumalanga. Terms of the deal were not disclosed.

Another agribusiness deal involving a 60% stake also made the news last week.
LGC Capital, a Canadian investor, in partnership with AfriAg, a South African specialist agribusiness, have agreed to acquire a 60% stake in House of Hemp in a deal valued at approximately $4.1 million. The deal forms part of LGC's Medical Cannabis initiative, a 50/50 joint venture with AfriAg to develop a fully-regulated cannabis growing and processing industry in the southern African region for export to certified and regulated end users world-wide.

In a renewable energy debt deal, Emerging Africa Infrastructure Partners and Dutch DFI FMO are jointly lending $29.3 million of senior debt to the 13MW Bugoye hydro-electric power plant, situated in Western Uganda, which is owned by the Africa Renewable Energy Fund (AREF), Berkeley Energy's $200 million fund.  The proceeds of the refinancing will be used to repay the balance of EAIF's original loan to the project as well as construction loans made by AREF. In addition, some of the capital will be used to fund repair works for the power plant, which has been producing electricity for Uganda's national grid since 2008.

The European Investment Bank is evaluating the possibility of making a commitment to Denham Capital's  International Power Fund which targets opportunities in energy and renewable energy generation projects in Africa, South East Asia and Latin America. As yet, the size of the potential commitment remains undisclosed.  The Denham International Power Fund's strategy will be to invest in projects via five to eight platforms, backing experienced project developers and management teams who have strong knowledge of the markets in which they operate.

In what looks like sgnificant competition for Atlas Mara and Arise, Milost Global, a private equity firm based in New York announced the launch of Milost Bank Africa Ltd, or MBAL, a new financial services company which will seek buyout opportunities in the banking industry on the continent. The firm seems to have a significant war chest, with more than $25 billion in committed capital, primarily for buyouts, but also for alternative capital, mezzanine finance and alternative lending solutions to companies across a wide range of industry sectors around the world.

As part of its strategy to expand its asset management business, EFG Hermes, the Egyptian investment bank, is paying $21.5 million for a 50% stake in Frontier Investment Management Partners or FIM Partners, a Dubai-registered asset manager with $1.6 billion in assets.  The deal, which is being executed via the investment bank's subsidiary EFG Hermes UAE Ltd., raises the value of EFG's public and private market assets under management to $4.5 billion. In order to realize some of the synergies promised by the deal, EFG plans seek client consent over the next six months to roll over its regional, non-Egyptian, portfolio and funds into FIM Partners.

And finally, in some people move news, Phatisa announced last week that it is promoting Rinolan Moodley to the position of Deal Partner with the firm. Moodley, who joined Phatisa in September 2013, was previously a Senior Deal Principal focused on deals in the food and agribusiness sectors. In his new role, Moodley will lead a team sourcing and executing new transactions for Phatisa Food Fund II, a planned $300 million fund which will target opportunities in the food and fast moving consumer goods value chain in sub-Saharan Africa.

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

Bugoye Power Plant
EAIF and FMO agree $29.3mln refinancing deal for Bugoye hydro-electric power plant
Deals and Deal News...
Private Equity
Sanlam Private Equity acquires control stake in JAB
Sanlam Private Equity has acquired a 60% interest in JAB Dried Fruit Products, a processor and distributor of dried fruits and nuts for markets in South Africa and overseas. Terms of the deal were not disclosed.
Private Equity
LGC and AfriAg buy 60% stake in House of Hemp
LGC Capital, a Canadian investor, in partnership with AfriAg, a South African specialist agribusiness, have agreed to acquire a 60% stake in House of Hemp in a deal valued at approximately $4.1 million.
Funds & Fundraising News...
Private Equity
EIB mulls commitment to Denham Capital fund
The European Investment Bank is evaluating the possibility of making a commitment to Denham Capital's International Power Fund which targets opportunities in energy and renewable energy generation projects in Africa, South East Asia and Latin America. As yet, the size of the potential commitment remains undisclosed.
Projects & Portfolio Companies...
Private Debt
EAIF and FMO refinance AREF's Bugoye hydro project
Emerging Africa Infrastructure Fund and Dutch DFI, FMO are jointly lending $29.3 million of senior debt to the 13MW Bugoye hydro-electric power plant, situated in Western Uganda, which is owned by the Africa Renewable Energy Fund, Berkeley Energy's $200 million renewable energy fund which closed in late 2015.
Private Equity
Milost Global forms African banking platform
Fresh from making its first investment in Ghana a couple of weeks ago, Milost Global, an Africa-focused private equity firm based in New York announced the launch of Milost Bank Africa Ltd, or MBAL, a new financial services company which will seek buyout opportunities in the banking industry on the continent.
This week's issue supported by...             
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Sectors & Strategies...
Healthcare
RH Bophelo plans to disrupt South African healthcare
A list from IT Web Africa of 10 startups who have the potential to achieve a valuation in excess of $1 billion, thereby becoming Africa's first "unicorns". The ranking has been complied using a mix of sales and investment data.
Companies, People & Profiles...
Companies
EFG Hermes buys 50% FIM stake for $21.5mln
In line with its strategy to expand its asset management business, EFG Hermes, the Egyptian investment bank, is paying $21.5 million for a 50% stake in Frontier Investment Management Partners or FIM Partners, a Dubai-registered asset manager with $1.6 billion in assets.  
People
Phatisa promotes Moodley to Partner
Pan-African private equity investor Phatisa announced last week that it is promoting Rinolan Moodley to the position of Deal Partner with the firm. Moodley, who joined Phatisa in September 2013, was previously a Senior Deal Principal focused on deals in the food and agribusiness sectors.
Current Job Postings...
This week's featured jobs...             
Investment Director, DFID Impact Acceleration Fund at CDC  // cdcgroup.com
Based in London, United Kingdom
Assistant Manager, Financial Modelling at Berkeley Energy  // berkeley-energy.com
Based in Nairobi, Kenya
Upcoming Conferences...
Highlighted Event...             
Power Nigeria 2017
Lagos, September 5th to September 7th, 2017 
Public Private Partnership Financing, Projects & Contracts
Johannesburg, August 21st to August 24th, 2017 
New this week...
Nigeria Com 2017
Lagos, September 20th to September 21st, 2017 
Bonds, Loans & Sukuk Kenya Briefing Day 2017
Nairobi, October 3rd, 2017 
Sub Saharan Africa Power Summit
Cape Town, October 25th to October 27th, 2017 
3rd Annual Urban & Infrastructure Development Conference
Kampala, October 30 to October 31st, 2017 
META Projects 2017
Dubai, November 1st to November 2nd, 2017 
Finnovation Africa: Ethiopia 2017 
Addis Ababa, November 3rd, 2017 
New this week...
AfricaCom 2017
Cape Town, November 7th to November 9th, 2017 
Bonds, Loans & Sukuk Nigeria Briefing Day 2017
Lagos, November 20th, 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 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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