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. Ghana: Actis exits former Abraaj investment
Actis, an investor of private capital into global emerging markets, has exited its majority stake in GHL Bank, a full-scale commercial bank in Ghana, to First National Bank Ghana, a 100% subsidiary of South Africa's FirstRand Group. Actis took over the investment in 2019 when it took over the management of Abraaj Africa Fund III.
The transaction has received the required regulatory approvals from the Bank of Ghana and the South African Reserve Bank.
The fund invested in GHL Bank in 2016, and enabled the company to leverage its unique value proposition as the leading mortgage provider in Ghana to achieve the transition into a full-scale commercial bank focused on the retail sector. The original investment thesis was premised on GHL’s robust mortgage model, deep knowledge of the retail customer and the significant growth opportunities that exist within this segment of the Ghanaian banking industry.
2. DPI makes $56m investment into food business
Development Partners International (DPI), a pan-African private equity firm, has announced the second investment from its third fund, Africa Development Partners III (ADP III), into Société Industrielle des Conserves Alimentaires (SICAM), a food business and tomato processor in Tunisia.
Established in 1969, SICAM is the leading producer of canned tomatoes, pepper pastes, and jams and one of the most recognised brand names in Tunisia’s food and agri-industry, with a strong track record of delivering quality products to its customers. Wholly owned by the Bayahi Group, a leading Tunisian conglomerate, SICAM has quickly become the fastest growing player and market leader of the sauces and condiments segment in Tunisia, in part driven by its strong relationships with the local farming industry, enabling it access to consistent tomato harvests.
3. Cepheus Capital invests in Ethiopian FMCG company
Cepheus Growth Capital Partners made an investment into East African Lion Brands Manufacturing Share Company (Lion Brands), one of Ethiopia’s leading domestic manufacturers of fast-moving consumer goods (FMCG) products in the home care, personal care and food segments. With this investment, Cepheus Capital will hold a significant minority ownership stake and provide strategic, managerial, and operational support to Lion Brands.
Lion Brands, a company under the umbrella of conglomerate East African Group PLC (EAG), based in the outskirts of Addis Ababa, is embarking upon a major expansion of its production capacity to meet growing demand for its products in Ethiopia. The equity investment by Cepheus Capital will support the company’s expansion plans and also facilitate operational enhancements as well as raise Lion Brands’ environmental, social, and governance standards.
4. Mediterrania Capital Partners acquires healthcare company
Mediterrania Capital Partners has announced the acquisition of MetaMed, the largest platform of diagnostic imaging centres in Egypt, Jordan and Saudi Arabia. The investment was led by Mediterrania Capital Partners through its fund MC III and included Mediterrania Capital’s fund investors FMO, Proparco, DEG and EBRD.
MetaMed was created in 2009 by Gulf Capital GC Equity Partners II as Technogroup Investments Holdings (TGIH) with the purpose of investing in diagnostic imaging (DI) and related radiology services such as MRI, CT scanning and X-ray. After several acquisitions and expansion of the different businesses, MetaMed currently owns, manages and operates 27 DI centres mostly located in Egypt, a few centres in Jordan and Saudi Arabia, and one centralised clinical laboratory in Egypt.
5. Soros invests $10m in African private equity fund
The Soros Economic Development Fund (SEDF) has committed $10 million to Alitheia IDF, a private equity fund managed by a joint venture between two established managers, Alitheia Capital of Nigeria, and IDF Capital of South Africa.
Alitheia IDF is the first women-led private equity fund in the region. The fund was launched to specifically target gender-diverse and high-growth African small and medium-sized enterprises that improve the lives of women as business leaders, employees, community members, suppliers, and customers, in turn enhancing corporate governance, decision making and innovation across the continent.
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