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. Actis exits South African and Kenyan energy assets

Actis has agreed to sell 100% of BTE Renewables to Engie and Meridiam. On completion, Engie will acquire the South African portfolio and team while Meridiam will acquire the Kenyan portfolio and team.

Actis established the pan-African renewable energy platform in 2017, with the acquisition of the Kipeto wind project in Kenya in the development stage. In 2019, Actis grew the platform with the acquisition of South Africa-focused BioTherm Energy and rebranded the company BTE Renewables.

2. Convergence Partners backs Yellow’s latest Series B funding round

Convergence Partners announced the closure of its investment in Yellow, a provider of pay-as-you-go finance for off-grid solar home systems and connectivity solutions for low-income consumers in parts of East Africa.

Brandon Doyle, CEO of Convergence Partners says, “We are excited to be backing the Yellow team. We have been tracking off-grid solar power asset finance space for many years but have failed to find a business model and team that we felt we could back until now. Yellow’s offering also sits well with our promise to our investors of strong investment returns married with solid social development impact; in this case by tackling the triple challenge of financial inclusion, green energy distribution, and broadband penetration, and doing so profitably while servicing the unbanked communities of the lowest income countries of Africa.”

3. Lion’s Head Group changes name

Emerging markets investment bank, Lion’s Head Group, announced the change of its name to Cygnum Capital Group.

The move is part of a new direction for the business as it expands its international footprint.

Cygnum Capital will be led by the group’s co-founder and CEO, Clemens Calice. The senior leadership team is represented by the firm’s operating committee which is comprised of Martin Weber, James Doree, Orli Arav, Enrico Nora and Teresa Parkes.

4. Ethiopian building materials venture secures seed funding

Kubik, a startup specialising in the transformation of hard-to-recycle plastic waste into affordable, low-carbon building materials, has raised a $3.34 million seed funding round.

Participating investors included Plug & Play, BESTSELLER Foundation, GIIG Africa Fund, Satgana, Unruly Capital, Savannah Fund, African Renaissance Partners, KAZANA Fund, Princeton Alumni Angels, and Andav Capital. In addition, strategic angel investors such as Joel Holsinger, Will Abbey, and Maex Ament provided support. The funds raised will be utilised to drive the expansion of Kubik’s operations throughout Ethiopia.

5. Japanese investors back Kenyan automotive startup

Kenyan automotive startup Peach Cars has raised $5 million in seed funding, marking one of the largest rounds in Africa’s mobility sector. Led by University of Tokyo Edge Capital Partners (UTEC), the investment round also attracted contributions from Mercari’s CEO, Shintaro Yamada; PayPal’s head of Japan, Peter Kenevan; and Waseda University Ventures’ GP, Hiroaki Ohta.

Peach Cars has developed a proprietary smart engine check system which automates the car inspection process, providing a 225-point system that meets Japanese auto industry standards. This is particularly significant in Kenya, where 80% of cars are Japanese. Since its inception in November 2020, the firm has sought to reform car ownership in sub-Saharan Africa, with a focus on addressing information asymmetry, mistrust, and fraud in the region’s second-hand car market.