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. Mediterrania announces final close of third Africa fund
Mediterrania Capital Partners, a private equity firm focused on growth investments for SMEs and mid-cap companies in North and sub-Saharan Africa, has reached a €286 million final closing for its third fund for Africa, Mediterrania Capital III (MC III).
MC III is an eight-year fund that targets SMEs in North African countries including Algeria, Egypt, Morocco and Tunisia, as well as West and Central African countries including Senegal, the Ivory Coast and Cameroon. Looking to take substantial minority or majority stakes, the fund is investing in companies that are well-established in their local markets and have the potential to scale up their activities at the regional level and across the African continent.
2. Phatisa and partners acquire Southern African agricultural solutions provider FES
Phatisa Food Fund 2 (PFF 2) and a group of co-investors – Norfund, Mbuyu Capital and DEG – have acquired integrated agricultural solutions provider Farming and Engineering Services Limited (FES). The investment will support FES’s long term growth strategy, assisting the company to expand its successful business model to neighbouring countries.
FES, established in Malawi in 1967, caters for a broad customer base of commercial and emerging farmers. It is the single largest investor in Malawi's agricultural equipment industry and the sole distributor of several well-known and trusted brands, including Massey Ferguson, Komatsu, AJ Power and Toyota Forklift.
3. Old Mutual Private Equity a step closer to buying branded clothing distributor
South Africa's Competition Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Old Mutual Private Equity, through the OMPE Fund V, intends to acquire footwear and apparel distributor Crick.
Crick is active in the wholesale distribution and retail sale of branded apparel, footwear and accessories under the Kappa, Superga, Alpha and Crep Protect brands. Crick is the licensed distributor of these brands in South Africa.
Of relevance to the proposed transaction was the controlling interest held by Old Mutual in Footgear, a retailer of various brands of clothing, footwear and accessories, through the Footgear, Edgars Active and High Key retail chain stores.
4. Agri-Business Capital Fund signs new LP
The International Fund for Agricultural Development (IFAD) has announced an investment of $9 million into the Agri-Business Capital (ABC) Fund, a blended capital impact fund.
The ABC Fund, managed by Bamboo Capital Partners, catalyses blended capital and invests in underserved segments of agribusiness value chains focusing on farmer organisations, financial intermediaries and agribusiness SMEs. It particularly targets commercially viable ventures that can help create employment, in particular for youth and women, and improve rural livelihoods. The fund also prioritises climate-smart projects that promote sustainable production.
In addition to the IFAD commitment, the ABC Fund has so far received contributions from the European Commission, the Organisation of Africa, Caribbean and Pacific States, Luxembourg and the Alliance for a Green Revolution in Africa. It has a target size of €200 million.
5. Savannah Fund II in line for IFC investment
The International Finance Corporation (IFC) has revealed it is considering an investment of up to $3 million in Savannah Fund II, a venture capital fund that is raising up to $25 million to invest in early-stage technology companies in Eastern and Southern Africa.
The fund will be managed by Mbwana Alliy and Paul Bragiel who have over 25 years’ combined experience investing in frontier markets, having started their first fund in 2012.
IFC will initially invest $1 million at the first close of the fund, and thereafter increase its commitment to up to $3 million if the fund gets to a minimum fund size of $15 million.
This investment will be processed through the IFC Startup Catalyst Programme, a $30 million facility to invest in a portfolio of incubators, accelerators, seed funds, and similar vehicles and structures, through equity and quasi-equity instruments.
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