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. CDC targets over $1bn annual investment in African businesses
CDC Group, the UK’s impact investor and development finance institution, has announced a commitment to invest over $1 billion again in African businesses in 2021. The funds will be invested in financial institutions, infrastructure and climate, services, manufacturing, agriculture, real estate and technology.
In 2020, CDC committed over $1 billion into Africa with a focus on the economic recovery from Covid-19. CDC injected systemic liquidity into financial markets, provided capital for companies that deliver critical goods and services, made new commitments to African funds and protected existing investees to help them sustain employment. Foreign direct investment into Africa is predicted to have declined by 30% over the year. CDC’s maintained investment pace provides counter-cyclical funding at a critical time for the continent.
2. African edtech startup uLesson secures $7.5m series A funding
uLesson, the African learning technology platform, has closed a $7.5 million series A round led by Owl Ventures, with inclusion from existing investors, TLcom Capital and Founder Collective and participation from new investor LocalGlobe. Tory Patterson, managing director of Owl Ventures, joins the uLesson board, further strengthening the education startup’s push to deliver affordable, high-quality and accessible education across Africa using technology.
Having scaled quickly to 1 million app downloads since its launch in March 2020, the funding will be deployed to power uLesson’s expansion into Eastern and Southern Africa, as well as secure new talent and build its product development and production infrastructure. Founded by serial entrepreneur, Sim Shagaya, uLesson curates personalised, curriculum-relevant content via mobile and PC devices for students in the K-7 to K-12 segment across the continent. Students can access the lessons via streaming and SD cards, where they can download and store the content, allowing them to study remotely, removing challenges around internet access limitations and costs.
3. DEG finances toy production in Tunisia
German development finance institution DEG is providing German toy company Steiff’s African production facility with financing via the AfricaConnect programme, using funds from the Federal Ministry for Economic Cooperation and Development. Steiff, which is known for its soft toy animals and high-quality children’s clothing, has its headquarters in the town of Giengen in eastern Baden-Württemberg. As well as its production facility in Giengen, Steiff has operated a factory in Tunisia for over 40 years.
This loan will help to strengthen an important employer in a less industrially developed region of Tunisia, thereby safeguarding jobs throughout the pandemic. Steiff employs some 800 people in its factory in Sidi Bouzid.
4. Aerobotics raises $17m led by Naspers
Aerobotics has raised $17 million in an oversubscribed series B round. This was led by Naspers, with significant participation from Platform Investment Partners, FMO: Entrepreneurial Development Bank and Cathay AfricInvest Innovation.
Founded in Cape Town, South Africa, Aerobotics has quickly scaled its mission to provide customers with intelligent tools to feed the world. Aerobotics’ data is widely used for the certainty it brings to farming and food security, as the global agricultural industry stretches to meet expected population growth and food demand.
5. Côte d’Ivoire: The Agri-Business Capital Fund signs debt deal
The Agri-Business Capital (ABC) Fund has provided a loan of €800,000 to the Enterprise Cooperative Kimbe (Ecookim) ahead of the 2020/21 cocoa production season.
The ABC Fund is managed by Bamboo Capital Partners in partnership with Injaro as investment advisors and with technical assistance led by Agriterra.
Established in 2004, Ecookim is a union of 29 cooperatives located in rural communities across 12 different provinces in Côte d’Ivoire. Ecookim’s members have a total cocoa production capacity of over 62,000 tons and operate on 85,000 hectares. Ecookim procures raw cocoa from its members, before processing, transporting, storing and exporting cocoa beans.
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