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. Phatisa invests in packaging company
Sub-Saharan Africa private equity investor, Phatisa, has acquired a significant minority stake in MHL International Holdings Limited, a subsidiary of The Manipal Group – the India-based conglomerate with interests in the printing and technology sectors – for an undisclosed sum.
The investment will mostly be used as expansion capital and is the fifth investment from the Phatisa Food Fund 2.
2. Adenia Partners announces $300m first close for its fifth fund
Adenia Partners has announced the first close of its fifth flagship fund, Adenia V, with $300 million in commitments from investors.
The fund exceeded its first close minimum threshold, achieving 75% of its target size, and attracting institutional and commercial investors that have invested in previous Adenia funds, as well as new investors. The list of returning limited partners includes numerous development finance institutions (DFIs): IFC, Proparco, EIB, FMO, DEG, Norfund, and BPI. Meanwhile, DFC, the United States government’s DFI and FinDev, Canada’s DFI, are among the new investors.
Adenia V, which has a target size of $400 million, will continue Adenia’s investment strategy of making control investments in medium-sized companies across Africa with proven business models that demonstrate ample room for operational and ESG improvements. The fund will be sector-agnostic with financial services, agribusiness, consumer goods, telecommunications, healthcare and education, business services, light manufacturing, and specialty distribution as particular areas of focus.
3. Convergence Partners raises $296m fund
Convergence Partners, a private equity investor dedicated to the technology sector across sub-Saharan Africa, announced the closing of its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million, surpassing its initial target by over 18%.
The close was backed by a combination of existing and new investors comprising global and regional development finance institutions (DFIs), pension funds and financial institutions based in Europe and Africa.
CPDIF was launched in June 2020 and had a first close of $120 million in July 2021. The fund is focused on investing in digital infrastructure opportunities across sub-Saharan Africa. This includes investments in fibre networks, data centres, wireless, towers, cloud, internet of things (IoT), artificial intelligence (AI) and other critical digital infrastructure that is vital for the growth of the digital economy in the region. In addition to investing in physical assets, CPDIF is also aimed at developing and supporting initiatives that promote access to education, financial services, healthcare, and other essential services through digital technologies.
4. InfraCo Africa invests in Kenyan rural internet provider
Mawingu, a Kenyan-based internet service provider, successfully closed its Series B investment round bringing onboard new investor InfraCo Africa.
InfraCo Africa’s $6 million commitment, delivered through its dedicated investment arm, will support Mawingu to roll out infrastructure across Kenya that will increase access to affordable internet connectivity to underserved households and businesses. InfraCo Africa was joined by Mawingu’s institutional investors E3 Capital and FMO, contributing $1.5 million each as part of this fundraise.
5. South Africa: E Squared backs insect protein company
E Squared Investments participated in a follow-on funding round with Nambu Group, a South African insect protein company converting food waste into feed for the poultry, pork, fish farming and exotic pet markets.
The insect protein market is forecast to reach $4.6 billion by 2027 due to increased awareness of sustainable food sources and reducing greenhouse gas emissions.