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. PE fund acquires stake in Kenyan bank
Private equity fund Shorecap III, managed by Equator Capital Partners, has acquired a 20% stake in Kenya’s Credit Bank PLC (CBP), effective 15 June 2023, according to an announcement by the Central Bank of Kenya (CBK). This move follows approvals by the CBK and the Cabinet Secretary for the National Treasury and Planning in April 2023.
Founded in 1986 and transitioning to a fully-fledged commercial bank in 1995, CBP currently operates 17 branches throughout Kenya. Specialising in providing services to small corporates and micro, small and medium-sized enterprises (MSMEs), it holds a 0.5% market share as of March 2023.
2. South Africa: Tyme raises $77.8m
Digital banking group Tyme has raised investment from Norrsken22 and Blue Earth Capital. The two new investors have come on-board as part of its pre-Series C capital raise. This comes as the group’s South African flagship, TymeBank, celebrates its seven million customer milestone this month.
Along with the two new shareholders – Norrsken22, an African focused tech growth fund, and Blue Earth Capital, an independent global impact investment firm – Tyme’s shareholders have invested a total of $77.8 million, with Tencent increasing its shareholding to become Tyme’s third largest shareholder. The funds being raised are intended to further operations in South Africa and the Philippines as well as for future expansion in Southeast Asia.
3. Swedfund appoints new investment head
Marie Aglert has been appointed as the new investment manager at Swedfund, Sweden’s development finance institution specialising in sustainable investments in developing countries.
Previously at the Swedish Export Credit Agency (EKN) as director for large corporates, Aglert brings with her a wealth of experience in risk assessment and financing projects in emerging markets.
4. First close for E3 Low Carbon Economy Fund for Africa
E3 Capital and Lion’s Head Global Partners have announced a first close for the E3 Low Carbon Economy Fund for Africa (E3LCEF) at $48.1 million. The early-stage venture fund will focus on investing in next-generation low-carbon entrepreneurs in Africa scaling new technologies and business models enabled by the low carbon economy. The fund will invest in early-stage companies and hold significant capital for follow-on in later rounds. The fund has had its first close at $48.1 million and targets a second and final close of up to $100 million within 12 months.
E3 Capital and Lion’s Head combined forces to leverage their respective experience and footprint in Africa. E3 Capital also currently manages a €75 million fund (EAVF I) investing in decentralised energy businesses across Africa, with 15 investments in East-, West- and Southern Africa. Lion’s Head is an established emerging and frontier market focused asset manager with over $700 million under management and through a separate subsidiary provides corporate finance advisory services to governments, multilaterals, and private companies. Together, E3 and Lion’s Head have invested in more than $400 million in 30 African countries.
The fund is backed by KfW (in collaboration with BMZ, the German Ministry for Economic Cooperation and Development); FMO, the Dutch entrepreneurial development bank; Swedfund and Proparco.
5. Dawi Clinics raises funding for expansion in Egypt
Dawi Clinics, the largest chain of outpatient care in Egypt, has raised EGP 250 million (c. $8.1 million) to fund the growth of its chain of clinics across the Egyptian market by opening 30 new branches.
The investment round is led by Al Ahly Capital Holding (ACH), the local investment arm of the National Bank of Egypt (NBE) with a co-investment by the Egyptian-American Enterprise Fund (EAEF), a US Congressionally-supported investment fund, and already invested in Dawi.