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. African Infrastructure Investment Managers fund lands new LPs
Development finance institutions British International Investment (BII) and FMO have announced a joint commitment to African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM). Their investment aims to support AIIF4 in reaching its $500 million target fund size. The fund had previously received a cornerstone investment from Old Mutual, the fund manager’s sponsor and a prominent African financial services group.
Anchor investor BII has committed $76 million, and FMO, the Dutch entrepreneurial development bank, has committed $40 million, to AIIM’s fourth pan-African fund.
AIIF4 will play a role in bridging the estimated infrastructure financing gap of about $108 billion per year, by funding reliable infrastructure across the continent. AIIF4-backed projects will meaningfully boost productivity by creating jobs and stimulating economic activities, while the new and upgraded infrastructure will support inclusive development, improve standards of living for consumers and accelerate sustainable economic growth within many countries across the continent.
2. Seedstars International Ventures II announces first close
Seedstars launched its second emerging market seed stage fund, Seedstars International Ventures II. The firm announced the first close of the fund with $20 million committed by notable investors including the International Finance Corporation (IFC), Visa Foundation, The Rockefeller Foundation, and Symbiotics.
Since 2013, Seedstars has supported over 90 emerging market venture ecosystems, seeing firsthand how the founder talent pool has matured with 2,070 VC-backed startups in 2021 in its core markets versus just over 560 in 2017. Seedstars will leverage this progress and invest in 100 pre-seed and seed stage companies across Asia, Africa, MENA, and LATAM in the next three years. Investments will be focused on companies building for the future of finance, commerce, health, work and education, with follow-on investments up to series A.
3. Swedfund invests in Accion fund
Swedfund, Sweden’s development finance institution, announced an investment of up to $15 million in the Accion Digital Transformation Fund, focusing on the digital transformation of financial institutions in developing countries.
The fund meets 2X Challenge criteria with 20% females in senior management.
4. South Africa: Competition Commission recommends approval of proposed Futuregrowth citrus deal
South Africa’s Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Futuregrowth Asset Management intends to acquire 18.75% share capital in citrus producer Fruitone Holdings Proprietary Limited (Fruitone), without conditions.
Futuregrowth is a specialist asset management company in South Africa, wholly owned by Old Mutual Investment Group (OMIG). OMIG is a wholly owned subsidiary of Old Mutual Emerging Markets Proprietary Limited (OMEM). OMEM is in turn wholly owned by Old Mutual Group Holdings (SA) Limited (OMSA), which is in turn wholly owned by Old Mutual Limited (OM). OM is the acquiring group.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any public interest concerns.
5. AfricInvest exits Bridge Group West Africa to Teyliom Finance
AfricInvest announced that both its funds AfricInvest II LLC and AfricInvest Financial Sector Fund Ltd have exited from their investment in Bridge Group West Africa (BGWA), a financial services holding company controlled by Teyliom.
During the investment period, AfricInvest has accompanied BGWA on its growth journey from a single-country commercial banking business, Bridge Bank Group Côte d’Ivoire, to a diversified regional group that today covers Senegal through Bridge Bank Senegal, and has expanded to other non-banking financial services in Côte d’Ivoire, such as brokerage and asset management through Bridge Securities and Bridge Asset Management, and micro finance via a mobile-centric savings and loans service, called Bridge Micro Finance (BMF).
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