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. Verod completes Nigerian financial services deal
Verod Capital Management Limited has announced the completion of the acquisition of 100% of AXA Mansard Pensions Limited, a licensed pension fund administrator that offers retirement savings accounts and pension fund administration services to both private and public sector employees in Nigeria. The transaction is subject to receipt of final approval from the National Pension Commission.
“We strongly believe that this is the ideal time to enter the market and that AXA Mansard Pensions provides an excellent beachhead from which to establish a consolidated position and positively contribute to the continued development of the industry,” said Eric Idiahi, partner at Verod. “The National Pension Commission continues to demonstrate a strong commitment to raising standards within the industry and driving pension penetration rates in the short to medium term. We believe that sustaining AXA Mansard Pensions’ industry-leading investment returns, excellent customer service, as well as, expanding distribution network and product offerings will facilitate the capture of the considerable growth potential within the Nigerian pensions industry, particularly following the opening of the transfer window.”
2. Kenyan retailer Naivas raises $55m from sale of stake to PE investors
Kenyan supermarket chain Naivas has raised Ksh.6 billion (about $55 million) from the sale of a 30% stake to a consortium of private equity investors, according to a report by Business Daily.
Earlier this year Africa Private Equity News reported that Amethis – alongside its partners DEG, MCB Equity Fund and IFC – acquired a minority equity stake in Naivas Group.
Naivas is the leading retailer in Kenya with 60 stores throughout the country.
3. Egypt: Global Ventures and FMO participate in Paymob’s $3.5m funding round
The Egyptian digital payment provider Paymob founded by Islam Shawky, Alain El Hajj and Mostafa El Menessy, announced it has raised $3.5 million investment led by Global Ventures and the Dutch Entrepreneurial Development Bank FMO with a follow-on investment by A15. Paymob will be using the proceeds to further expand its merchants’ network to meet the continuously rising demand, product development and establishing a larger regional footprint.
Islam Shawky, Paymob’s co-founder and chief executive officer said, “In a world where consumers are currently adopting digital products in all aspects of their lives, now is the time to invest in Paymob products to empower the digital economy. These unprecedented times has proven the need for a robust digital payments infrastructure to serve the rising demand from all business types and sizes during the pandemic which resulted in a drastic increase of 450% increase in merchant on-boarding rate since the beginning of Covid-19.”
4. Helios portfolio company completes $53m tomato processing factory in Nigeria
GBfoods, a global culinary products manufacturer, recently built a N20 billion ($53 million) tomato processing factory in Kebbi State, Nigeria. The factory is the second largest in Nigeria and the only fully backward integrated plant. When all phases of the project are finished, the factory will be the largest fresh tomato processing factory in sub-Saharan Africa.
In May 2017, private equity firm Helios Investment Partners partnered with GBfoods S.A. to capitalise GBfoods Africa, creating one of the continent’s largest fast-moving consumer goods businesses with a presence in over 30 African countries. GBfoods Africa owns brands such as Jumbo (bouillon), Gino and Pomo (tomato paste), and Jago (milk powder and mayonnaise), as well as Bama (mayonnaise) distribution rights for Africa.
5. CDC establishes permanent presence in Egypt and appoints coverage director
CDC Group, the UK’s impact investor and development finance institution, has announced the appointment of Sherine Shohdy as its new coverage director for Egypt. In this new role, Shohdy will focus on building more partnerships with local businesses, due diligence and support CDC’s Egyptian portfolio.
CDC is Africa’s largest impact investor and has invested on the continent for over 70 years. CDC has been present in Egypt since 2003 and its portfolio of companies collectively employ 28,351 people. In July 2020, CDC announced a deal to provide $100 million of tier 2 capital to Commercial International Bank (Egypt). Other strong local partnerships include Ezdehar Private Equity, Sawari Ventures and the 800MW Benban Solar Park in Aswan.
Shohdy joins CDC with a wealth of experience working in Egypt and across the Middle Eastern and North Africa (MENA) region, both in development finance and across the private sector. She most recently worked as a senior consultant to the International Finance Corporation with a focus on the manufacturing, agribusiness and services sectors across the MENA region, having previously spent close to a decade at the institution working on investments mostly focused on the infrastructure and natural resources sectors in Egypt and neighbouring countries. Shohdy has also held senior positions at Hassan Allam Holding, its subsidiary Hassan Allam Utilities and the Arab African International Bank.
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