The 5 most popular stories on Africa Private Equity News this week
Here are summaries of the five most widely read stories this week on Africa Private Equity News.
1. Alitheia IDF announces final close at $100m
The management of Alitheia IDF, Africa’s first women-led and women-focused private equity fund, has announced the final close of the $100 million fund with the European Investment Bank (EIB) joining as the closing investor with $24.6 million.
Led by principal partners Polo Leteka and Tokunboh Ishmael, Alitheia IDF invests in growth-stage companies across six African countries: Nigeria, South Africa, Ghana, Zimbabwe, Lesotho and Zambia.
The fund has a mandate to plug the over $42 billion investment gap between male and female entrepreneurs as a means of catalysing the economic power of African women as producers, distributors, and consumers. In 2021, the fund began implementing this mandate by leading investment rounds in five women-led businesses across essential sectors including agribusiness, education, manufacturing, housing, technology, and logistics. The investee companies are Jetstream Africa (Ghana), ReelFruit Ltd (Nigeria), SKLD (formerly SchoolKits, Nigeria), AV Light Steel (South Africa) and Chika’s Food (Nigeria).
2. RMB consortium invests in South African alcohol-free drinks company
Rand Merchant Bank (RMB) has partnered with AB InBev’s corporate venture capital arm ZX Ventures to take an equity stake in alcohol-free South African drinks company The Duchess, creator of the world’s first alcohol free gin & tonic that’s proving globally popular.
The Duchess launched in 2016 and has since achieved multinational success by selling over 8 million bottles.
3. Medical Credit Fund raises €32.5m to invest in African healthcare
Medical Credit Fund (MCF), the only debt fund fully dedicated to the African health sector, announced the completion of a €32.5 million fundraise of its second fund (MCF II). This financing round will expand the fund’s presence and support to healthcare providers in sub-Saharan Africa, with a focus on primary healthcare services including malaria prevention and treatment and maternal and childcare. The round also caters for expanding its fully digital loan product called ‘Cash Advance’, which grew exponentially in the past two years.
The funding round was anchored by the Dutch Ministry of Foreign Affairs, which provided the first equity injection of €7.5 million in January this year, to cater to the demand for loans during the heights of the Covid-19 crisis. Also participating in this funding round are CDC Group (€10 million), FMO (€7.5 million), Swedfund (€5 million) and Philips (€2.5 million). In addition, MCF will benefit from a guarantee facility by the U.S. International Development Finance Corporation (DFC), which was initiated by the Health Finance Coalition (HFC) with support of the U.S. President’s Malaria Initiative (PMI) and USAID’s Center for Innovation & Impact (CII). Through blended finance, MCF uses catalytic capital from both public and private sources and is targeting to grow to €80 million in the next few years.
4. PE firm acquires stake in Tunisian fast food company
INMA Holding, a private equity firm dedicated to Tunisian SMEs, launched in 2018, announced an investment of 5 million dinars (about $1.7 million) in ABK Group, owner of the fast food brand Plan B.
Launched in 2014, the brand Plan B has quickly gained the recognition of a growing public, thanks to the quality of its products and the distinction of its service. ABK Group now operates around different structures that constitute a “one-stop shop” for the restaurant industry and in particular the various Plan B outlets, most of which are managed as franchises. The group can provide the various outlets with all of their supplies, whether in food or non-food products, and manages logistics, branding and all administrative aspects on their behalf. After only six years, the network now has 28 outlets across the country.
5. Zebu announces equity buyout of AMC Trade Finance
Zebu Investment Partners has followed on from its 2020 investment in AMC Trade Finance Limited (AMCTF), through its African Food Security fund, resulting in an equity buyout of the founders, Africa Merchant Capital Limited (AMC). AMCTF is a specialist trade finance business that was founded by AMC in 2016 and provides secured and structured trade finance solutions for Africa-focused trade.
Cobus Visagie, group CEO of Africa Merchant Capital said, “AMCTF has a strong team that we are confident can achieve great success and we look forward to following their continued progress. The sale of the AMCTF subsidiary, allows me and my team at AMC to refocus and reposition its merchant bank offering in the midst of a rapidly changing business environment. With the strong foundations laid over the past nine years, AMC has proven its resilience and adaptability in its offering to provide corporate finance advisory, as well as other finance and growth capital solutions, for successful mid-market businesses active in sub-Saharan Africa. We are excited about this market opportunity that AMC continues to serve.
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