August 21st, 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...             
Powering Africa Nigeria
The Week in Brief...
When we look back at the end of the year, we could see that deal activity in Africa's private capital markets last week was the sleepiest we saw all year. Transactions were few and far between, and all over the map, value-wise. And fund commitments and closings were pretty much non-existent. But, notable, the biggest deal of the week was also the first in Africa for its investor.

The deal was in the mining sector, and the first-time investor has its HQ in Australia. EMR Capital, a private equity fund manager with about $2 billion in assets, agreed to buy stakes in Zambia's Lubambe Copper Mine belonging to African Rainbow Minerals and Vale International. The Australian private equity firm will pay a total of $97.1 million in cash for their combined 80% stake and will assume the Zambian copper mine's loan liabilities. 

In another transaction in the southern part of the continent, Sanlam Investments has agreed to acquire a 30% stake in EasyEquities from Purple Group. The all-cash deal is reportedly worth R100 million, or approximately $7.6 million.

Launched in October 2014, EasyEquities has grown rapidly, prompting it to look for additional funding from a strategic partner with deep enough pockets to support the growth and development of the fintech company's platform over the next two to three years. To date the company has been financed out of the earnings of other Purple Group businesses as well as a few small capital raisings.

Next up, a debt deal, albeit a very small one. Social impact investor AgDevCo is backing Talian, a Ugandan milling business, with $450,000 of debt. The financing will help Talian's plans to scale up its operations. Until now, the company, which has ambitions of becoming a significant operator in the maize and cassava flour markets in East and Central Africa, has struggled to access capital and consequently has been unable to fully utilise its production capacity.

At the other end of the value scale, GFH, a leading financial investment group based in Bahrain, has completed the acquisition of a $1.2 billion portfolio of infrastructure assets in Africa and the Middle East. Details of the assets, their sellers and the financial terms agreed were not disclosed.

The deal has been funded by a $315 million capital increase, which lifts publicly-listed GFH's issued and paid up capital to $975 million.  In addition, the transaction launches an infrastructure investment business line for the group, which currently operates in the private equity and asset management, commercial banking and real estate sectors.

There were a couple of interesting items in online publication How We Made It In Africa last week. In the first, Robert MacPherson of the NTU-SBF Centre of African Studies and Zubaidah Jalil of the National University of Singapore review the evolving investment relationship between the Gulf and Africa. And in the second, Justin Probyn looks at how the continent's youthful population, under-resourced public education systems and mismatch of skills and employer needs has created fertile terrain for Africa's private education investors.

Finally, the  latest South African private equity performance report from Riscura and SAVCA was published last week. The data reveal the results delivered by a representative basket of the country's private equity funds for the quarter ending March 31st this year. While public markets hit record highs for the period, private equity returns for the quarter dipped in the face of economic and political headwinds.
That's it for this week.  As always, you can review these and other stories by scrolling down and clicking through to them below.  

EMR Capital, making its first African deal, pays $97mln for stake in Zambia's Lubambe copper mine
Deals and Deal News...
Private Equity
EMR Capital pays $97mln for Lubambe Mine stake
EMR Capital has agreed to acquire the stakes in Lubambe Mine belonging to African Rainbow Minerals and Vale International.
Private Equity
Sanlam takes 30% stake in EasyEquities
Sanlam Investments as agreed to acquire a 30% stake in EasyEquities, a fintech business belonging to Purple Group.
Venture Capital
AgDevCo backs Ugandan milling company with debt
Social impact investor, AgDevCo, is backing Talian, a Ugandan milling business, in a $450,000 debt deal.
Funds & Fundraising News...
Private Equity
Ethos' latest mezzanine fund in line for EIB commitment
The European Investment Bank is considering an investment of $20 million in Ethos Mezzanine Partners 3, a $150 million generalist fund which launched in February this year.
This week's issue supported by...             
Projects & Portfolio Companies...
Infrastructure
GFH buys $1.2bln MEA infrastructure portfolio
GFH, a leading financial investment group based in Bahrain, has completed the acquisition of a $1.2 billion portfolio of infrastructure assets in Africa and the Middle East.
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Trends & Perspectives...
Trends
South Africa's private equity returns dip in the first quarter
While public markets in South Africa achieved record highs in the first quarter of the year, the latest private equity performance report from Riscura and SAVCA found returns for the quarter dipped in the face of economic and political headwinds.
Kudos Image
Trends
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.
Perspectives
The Gulf and Africa's evolving relationship
An interesting review and analysis to help understand the evolving investment relationship between the Gulf and Africa.
Perspectives
Several factors bode well for Africa's investors
In a contributed article this week, FSDEA Board member  Miguel Damião Gago discusses several factors helping the continent remain one of the most interesting investment markets for the forseeable future.
Sectors & Strategies...
Education
Investors find private education opportunity appealing
A youthful population, under-resourced public education and a mismatch of skills and employer needs has created fertile terrain for Africa's private education investors.
Impact Investing
CDC's guide to building an impact-driven portfolio
Having created the Impact Accelerator in 2015, CDC Group, the UK's development finance institution, as published a quick guide outlining the factors to consider in building an impact-driven portfolio and the DFI's investment model.
This week's issue supported by...             
Africa Renewable Energy
Current Job Postings...
This week's featured jobs...             
Group Manager at Equinoxe Alternative Investment Services  // equinoxeais.com
Based in Ebene, Mauritius
Chief Executive Officer of Africa Venture Philanthropy Association  // ivpc.global
Based in Nairobi, Kenya
Senior Investment Officer at AfDB  // afdb.org
Based in Abidjan, Côte d'Ivoire
Principal, Investment Advisory at CrossBoundary  // crossboundary.com
Based in Nairobi, Kenya
Investment Officer at African Capital Alliance  // acagp.com
Based in Lagos, Nigeria
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...             
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 
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 
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

Africa Capital Digest is a product of Rowayton Press 
Customer Service |  thall@africacapitaldigest.com | P.O. Box 141,
Rowayton, CT 06853, USA

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