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. TLG Capital exits Nigerian investment
TLG Capital announced its exit from Branch Nigeria, an investment made through its Credit Opportunities Fund (TLG COF).
Branch supports customers traditionally neglected by large financial institutions; its average loan size is $22 and average tenor is 36 days. The company uses an algorithmic, machine-learning approach via its smartphone app to determine potential customers’ creditworthiness. Branch Nigeria is a fully owned subsidiary of Branch Inc, a (Delaware-registered, San Francisco based) fintech company with operations in Africa (Kenya and Nigeria), the Americas (Mexico) and Asia (India).
2. Swedfund commits additional $10m to African PE fund
The Swedish development finance institution, Swedfund, is making an additional investment in African Development Partners (ADP) III to further support the development of the private sector in Africa.
During the autumn of 2019, Swedfund committed $15 million to ADP III which is the successor fund of the earlier Swedfund-backed ADP II. Swedfund has recently reaffirmed its support to ADP III by increasing its commitment by an additional $10 million.
3. Enygma Ventures announces $650,000 investment in Zambian company
Enygma Ventures announced its final investment of 2020 into PremierCredit, an online microlending platform operating in Zambia and Zimbabwe, which has extensive plans to grow and serve the SADC region.
“After an extraordinary year it has been incredible to see women-owned businesses still thriving and creating expansion plans despite the pandemic,” said Sarah Dusek, managing partner and co-founder of Engyma Ventures. “PremierCredit has a proven track record of supporting the informal sector and making informal trading possible for many by providing timely and appropriate loans to help businesses thrive.”
4. African Development Bank approves investments in Berkeley Energy fund
The African Development Bank’s board of directors on Monday 14 December 2020 approved $15 million from the Sustainable Energy Fund for Africa (SEFA) and $10 million from the Clean Technology Fund (CTF) to advance African Renewable Energy Fund (AREF) II’s projects to boost low-carbon energy generation in sub-Saharan Africa.
SEFA’s contribution will comprise a package of $10 million in equity and a $5 million reimbursable grant. CTF, part of the Climate Investment Funds (CIF), will provide $10 million in equity. The combined contribution of $20 million from SEFA and CTF will go to capitalise AREF II’s catalytic tranche. The reimbursable grant is earmarked for AREF II’s project support facility.
5. African digital bank raises $2m in funding
Umba, the digital bank for emerging markets, has announced a $2 million seed funding round to expand product capabilities in Africa.
Currently operating in Kenya and Nigeria, Umba offers a safe, transparent and accessible digital financial service alternative to legacy African banks. The full-service digital banking app is bringing the next generation of financial services to the underserved and rapidly emerging market that exists in Africa.
Investors in the recent funding include Lachy Groom, ex head of issuing at Stripe, who is adding Umba to his growing portfolio which includes notable investments in Notion and Superhuman. Ludlow Ventures also participated in the round, building on its success in fintech investing after the recent sale of Honey to PayPal for $4 billion. Meanwhile, Frontline Ventures and Act Venture Capital added to their previous investment in the company.