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. Helios exits chemicals distributor to DPI-led consortium
Solevo Group, an African distribution platform for specialty chemicals, announced its acquisition by Development Partners International (DPI), an investment firm focused on Africa, alongside minority co-investors South Suez and European development finance institution, DEG. The group of investors, led by DPI, are acquiring 100% of the business from Africa-focused investment firm Helios Investment Partners. All regulatory approvals for the transaction have been granted and the deal closed on 18 April 2023.
Helios, along with global investor Temasek, acquired Solevo in 2017 through the corporate carveout of Louis Dreyfus Company’s (LDC) African inputs business. Solevo has since become an important facilitator in the continent’s push for agricultural self-sufficiency and local industry stimulation. The company has 23 distribution sites and a network across eight countries. Under Helios’ ownership, Solevo has expanded its presence in the specialty chemicals distribution for life sciences and industrial segments.
2. Criterion Africa Partners completes investment in Merensky Timber
Criterion Africa Partners (CAP), in a co-investment with FMO, the Dutch entrepreneurial development bank, has completed an investment of up to $20 million each in Merensky Timber, an integrated timber products company in Africa and a wholly owned subsidiary of Hans Merensky Holdings (HMH).
Merensky Timber is the third largest private plantation owner in Africa with a base of 65,000 hectares of pine and eucalyptus plantations and associated manufacturing assets in South Africa.
3. LP considers $60m investment in Apis fund
The European Investment Bank, the lending arm of the European Union, has disclosed a proposed $60 million investment in the Apis Growth Markets Fund III, managed by Apis Partners.
The fund will invest growth-stage equity in companies providing innovative financial services solutions in Africa and Asia.
Apis Growth Markets Fund III has a target size of $500 million.
4. Agritech fund receives new investment
Bidra Innovation Ventures announced a $200 million commitment by Morocco’s Mohammed VI Polytechnic University (UM6P) and fertiliser giant OCP Group. This latest round of funding comes one year after Bidra launched a $50 million fund backed by the same investors focused on agriculture. This additional $200 million is on top of the $50 million that’s already funded.
”UM6P recognises the role innovation must play to sustainably solve global challenges,” said Amar Singh, group head of Bidra Innovation Ventures. “We are grateful for UM6P’s visionary leadership and support as we continue to back innovators forging the future via sustainable technologies for Africa and beyond. Having OCP’s support is a tremendous advantage because now we can extend OCP’s regional know-how and distribution capacity to startups that are ready to scale.”
5. Launch of Bamboo-managed fund in Burundi
The Republic of Burundi’s Ministry of Hydraulics, Energy and Mines (MINHEM) has launched the Solar Energy and Clean Cooking Fund (Fonds d’Energie Solaire et de Cuisson – FESEC), a component of the broader Solar Energy Project in Rural Communities initiative, also known as Soleil Nyakiriza. The World Bank is providing financial backing for this $17 million fund.
FESEC aims to deliver off-grid solar products to 65,000 households and improved stoves for efficient and clean cooking to 300,000 households. The fund, which has a fixed term until 1 March 2026, has appointed Bamboo Capital Partners as the international administrator-manager.