The appetite of investors is turned towards renewable energies, Fintechs and high-impact startups. This is what we see through this Focus on investments and exits of private equity funds in Africa produced with data from the African Venture Capital Association (AVCA).
Amethis and IFC sell their stake in the Kenyan distributor Naivas to Proparco and DEG
Amethis, alongside its partners, DEG, MCB Private Equity and IFC, a member of the World Bank Group, reached an agreement at the end of June 2022 to sell its stake in Naivas International (Mauritius), which owns 100% of the shares of Naivas Limited, a leading supermarket chain in Kenya. The deal which sees the Mukuha family continue to hold majority control, welcomes IBL Group, a Mauritian conglomerate as lead investor in a consortium of new capital partners. The partners of the IBL group in the consortium are Proparco, a subsidiary of the French Development Agency (AFD) and DEG, a subsidiary of the German group KfW. This is the first investment of the IBL group as part of its expansion strategy in East Africa. This agreement is still subject to regulatory approvals.
Mediterrania Capital (MC) on a fourth fund
Mediterrania Capital (MC), which successfully exited in mesofinance, Cofina is preparing to launch a fourth fund of 350 million euros. This new vehicle, Mediterrania Capital IV (MC IV), will specialize in growth investments in SMEs and small ETIs in Africa. Mediterrania Capital’s (MC) third fund “MC III” of 290 million euros is nearing its end.
Actis sells Lekela to Infinity Group and AFC
The private equity firm and Global sustainable infrastructure investment giant Actis is divesting from Lekela, Africa’s largest pure play independent renewable power producer in favor of Infinity Group and AFC. Citi and Clifford Chance advised Actis and Mainstream on the deal. The Lejeal platform comprises over 1 GW of fully operational wind assets, including five in South Africa, one in Egypt, one in Senegal and development opportunities in Ghana, Senegal and Egypt. Actif created Lekela in 2015 alongside a consortium led by Mainstream Renewable Power Africa, which also included IFC, to provide clean and reliable power around the world.
AfricInvest and Seedstars Africa Ventures support Bizao
Bizao, a fintech that facilitates payments for local and international businesses operating in Africa, announces an €8m Series A funding round led by AfricInvest Financial Inclusion Vehicle (AfricInvest FIVE), Adelie and Seedstars Africa Ventures. Created in 2019, Bizao has expanded its operations in 10 African countries (Burkina-Faso, Cameroon, Ivory Coast, Guinea, Mali, Democratic Republic of Congo, Senegal, Tunisia, Togo, Gabon) and processes more than 350 million requests for payment per month. Over the last twelve months, the company has multiplied its transaction volumes by nearly 20, says Aurélien Delort-Duval, founder and CEO of Bizao.
Cathay AfricInvest Innovation Fund closes at 110 million euros
The investment company, AfricInvest, and the venture capital firm, Cathay Innovation, announced the final closing of their pan-African venture capital fund, Cathay AfricInvest Innovation Fund (CAIF) at 110 million euros. The fund is backed by LPs such as EIB, AfricaGrow, FMO, Bpifrance, Triodos Investment Management, Proparco, SIFEM, BIO, and, among others, as well as a diverse pool of world-renowned investors, including institutions finance companies, leading multinational corporations and high net worth individuals in Europe, Africa and the Middle East.
British International Investment invests in South Africa’s largest photovoltaic renewable energy and battery storage project
Standard Bank and British International Investment (“BII”) have partnered with Scatec and H1 Holdings to successfully complete financing for South Africa’s first large-scale solar photovoltaic (PV) and battery energy storage project, the largest in Africa and the first baseload renewable energy project in South Africa. BII, the UK’s Development Finance Institution (DFI), acts as lead bank and provides an investment of R2.2 billion in senior debt. Alongside this, the DFI is providing an additional equity investment of R445 million mezzanine financing to H1 Holdings, a Broad Based Black Economic Empowerment (BBBEE) company and an investor in the project. The project will provide a total of 540 megawatts (MW) of photovoltaic (PV) solar power capacity and 1.1 gigawatt hours (GWh) of battery energy storage (BESS) – providing clean and reliable power to the South African grid. . The project will help solve the country’s electricity problems, which have been particularly crippling this winter as South Africa continues to suffer from prolonged power outages.
FMO invests $10 million in Algebra Ventures’ second fund
FMO, the Dutch entrepreneurial development bank, and Algebra Ventures, the Egyptian venture capital firm, have signed a $10 million commitment for the fund manager’s second fund. Algebra Ventures’ second fund invests in technology start-ups in Egypt with an allocation for the broader Middle East and Africa region. In addition to FMO, which invests under the FMO Ventures program, other investment partners include the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
FSD Africa commits $3.5 million to Catalyst Fund
The global inclusive technology accelerator Catalyst Fund, managed by BFA Global, announced on July 14, 2022 that FSD Africa had invested $3.5 million to anchor the Fund’s presence in Africa and expand its work as a principal accelerator and pre-seed impact fund for emerging market entrepreneurs. With support from FSD Africa, Catalyst Fund will invest and provide hands-on business development support to high-impact startups that improve the resilience of underserved and climate-vulnerable communities, with the goal of supporting 40 pre- priming in Africa.
IFC and Zambeef Partner to Strengthen Food Security
IFC and Zambeef Products PLC, one of the region’s leading agribusinesses, are joining forces to increase food security and strengthen Zambia’s agricultural sector to create jobs and alleviate poverty. IFC will invest up to $35 million in Zambeef to support the company’s three-year plan to expand its food production and processing capabilities, and enable it to source from local suppliers. Zambeef will use the funds to upgrade its animal feed factory, develop more animal shelters, purchase new agricultural equipment and develop 1,000 hectares of irrigated land, among other things. The project is expected to improve Zambeef’s value chain, resulting in the creation of nearly 1,400 new jobs.
IFC invests $90 million in Wave
IFC has invested €90 million in Wave Mobile Money to boost financial inclusion and support economic growth in Senegal and Côte d’Ivoire. The International Finance Corporation, a member of the World Bank Group, has invested €90 million in Wave, Francophone Africa’s first unicorn to boost financial inclusion and support economic growth in Senegal and Côte d’Ivoire.
The €90 million includes a €25 million loan from IFC’s own account, B loans for a combined €41 million from Symbiotics, Blue Orchard, responsAbility and Lendable, as well as parallel loans of 24 million euros from Finnfund and Norfund.
