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. Ascent acquires stake in Kenyan hospital
Proparco and Ascent Rift Valley Fund II, an East African private equity fund, announced the acquisition of a majority equity stake in Diani Beach Hospital Limited (DBH), the leading healthcare provider on Kenya’s South Coast.
Founded as a 10-bed private hospital in 1997, Diani Beach Hospital is today the largest private healthcare facility in Kwale County, with more than 120 beds across four sites. DBH has been a pioneer in offering quality and affordable medical services across the entire South Coast of Kenya. It is the reference private hospital locally, working with key local and international insurers, parastatals and corporations.
2. South Africa: Vantage Capital exits affordable housing developer Alleyroads
Vantage Capital, Africa’s largest mezzanine debt fund manager, announced that it has fully exited its investment in Alleyroads, an affordable housing developer in South Africa, managed by Ivan Pretorius. Vantage’s exit was financed by Absa which also provided funds for further expansion.
Vantage provided R82 million (c. $4.8 million) to Alleyroads in May 2020 to part-fund the development of Kayalane Heights, a first-of-its-kind affordable housing development located in Lebowakgomo, Limpopo. Whilst most banks were unwilling to fund the early-stage construction risk, Vantage recognised the enormous potential of Alleyroads providing a much sought after affordable rental housing development in an area with a significant shortage.
3. CrossBoundary secures equity investment from Norwegian pension fund
CrossBoundary Energy, a leading developer, owner, and operator of commercial and industrial renewable energy systems in Africa, announced the completion of a $40 million equity investment from Norfund, the Norwegian Investment Fund for developing countries, and KLP, Norway’s largest pension company, through their joint company KLP Norfund Investments AS. This commitment will allow CrossBoundary Energy to further scale its investments in renewable energy solutions for commercial and industrial businesses across Africa.
The secured funding is in addition to $40 million in equity invested in CrossBoundary Energy by ARCH Emerging Markets’ Africa Renewable Power Fund in 2020.
4. Senegal: Impact investor backs sanitation company
Investisseurs & Partenaires, through its fund I&P Afrique Entrepreneurs 2 (IPAE 2), announced a new equity investment in DELTA SA, a Senegalese company specialised in the sanitation and construction sector.
Created in 2002 by Léna Tall, DELTA SA benefits from a contract from its strategic partner ONAS (Office National de l’Assainissement du Sénégal), which entrusts the company with the maintenance of a large part of Dakar’s sanitation network and the management of pre-winter sanitation operations in Dakar and throughout the country. Since 2013, the company has also developed new services in the construction sector (extension of sanitation networks, construction, building renovation and maintenance, drinkable water conveyance, etc.).
5. Pearl Capital Partners in Ugandan agribusiness deal
The Yield Uganda Investment Fund, managed by Pearl Capital Partners, announced an investment of $515,000 in Enimiro in a blend of equity and cumulative redeemable preference shares.
Enimiro is a Jinja-based company first incorporated in 2019, and has since achieved rapid traction in the vanilla marketplace. The company is a vertical supply chain management business connecting the smallholder farmers to the international buying community for three organic products; vanilla, arabica coffee and dried pineapple, with vanilla as the anchor product. The business uses the latest product traceability systems to ensure constant support to its wide outgrower network of farmers while also providing an effective supply chain to the international customer base.
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