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. AIIM-led consortium establishes $150m cold chain logistics platform
To improve essential temperature-controlled logistics infrastructure in sub-Saharan Africa and ensure food security in the region, African Infrastructure Investment Managers (AIIM) and its investment partners, Bauta Logistics and Mokobela Shakati (Pty) Ltd Consortium have established a cold chain logistics platform, Commercial Cold Holdings (CCH) with the initial acquisition of CCS Logistics from Oceana Group. Funds managed by AIIM intend to invest up to $150 million in the platform, inclusive of the initial asset acquisitions as well as a pipeline of further acquisitions and greenfield development projects. The transaction is subject to regulatory approval.
The transaction was financed by a mix of equity and debt financing. AIIM, through its flagship South African IDEAS Fund and pan-African AIIF4 Fund, will have a controlling 59.2% stake in CCH. CCS has been operational for over 50 years and is an established leader in South Africa’s temperature-controlled logistics market. CCS currently operates about 100,000 pallets of storage across six facilities in Johannesburg, Cape Town and Walvis Bay, Namibia.
2. Ascent Rift Valley Fund exits Ethiopian medical diagnostics company
The Ascent Rift Valley Fund (ARVF) announced its exit of Medpharm, a provider of medical diagnostic laboratory services in Ethiopia, through the sale of its stake to Cerba Lancet Africa, a network of clinical pathology and medical diagnosis in Africa with 170 sites, across sub-Saharan Africa.
ARVF invested in Medpharm in 2015 and over that time the company’s revenue has grown nine-fold with tests volumes growing 15,000 per month to 40,000 per month making it the diagnostics market leader in Ethiopia.
3. Algebra Ventures completes first close of second fund at $100m
Egyptian venture capital firm Algebra Ventures has finalised a $100 million first close of its second Egypt-dedicated fund.
Algebra’s second fund is backed by several LPs from its first fund, including IFC, EBRD and EAEF, while FMO, BII, MSMEDA, DGGF and regional family offices are new investors.
While Algebra’s second fund will explore investment opportunities in East and West Africa, the main focus remains on Egypt.
4. EIB proposes investment in Leapfrog fund
The European Investment Bank has disclosed a proposed equity participation of approximately $60 million in the Leapfrog Emerging Consumer Fund IV, a growth equity fund focusing on companies providing innovative financial services and healthcare solutions in Africa and Asia.
The fund aims to provide equity and quasi-equity support to private companies active in healthcare and financial services.
Leapfrog Emerging Consumer Fund IV has a target size of approximately $1 billion.
5. DPI exits Egyptian retailer
Development Partners International (DPI) announced the sale of ADP II’s significant minority stake in B.TECH.
Founded in 1997, B.TECH is the largest integrated omnichannel retailing and consumer finance platform in Egypt, selling consumer electronics and household appliances. DPI invested in the business in 2016 through its second fund, ADP II, partnering with CEO and founder, Dr. Khattab, and his management team to execute an ambitious plan and digital transformation which resulted in sales and profits increasing by 5x and 10x respectively during DPI’s investment period.