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. Kenya: LeapFrog to exit insurance company stake
UK-based global insurance solutions firm, Linkham Group will acquire a stake in Resolution Insurance after agreeing to purchase 100% of the equity holding of private equity impact investment firm, LeapFrog Investments, for an undisclosed sum. The agreement is subject to certain closing conditions, including regulatory approvals in Kenya, and is expected to complete within this quarter.
The Insurance Regulatory Authority (IRA) of Kenya gave a nod to the parties to progress the transaction to completion in a move that will see Resolution Insurance business immediately gain access to Linkham Group’s financial and insurance networks in Africa and across the globe. Linkham Group insurance and reinsurance practices focus on providing innovative products relevant to each of their markets. The investment will give Resolution Insurance customers greater choice, broader availability and better value in a hypercompetitive Kenyan insurance sector at a time when a global health pandemic has put tremendous pressure on health service providers.
Linkham Group, which was founded in 2007 and remains privately owned with operations in South Africa, Mauritius, the UK and Ireland, now finds a foothold into its third market on the continent with the purchase.
2. Ethiopia: Zoscales makes follow-on investment in healthcare company
Zoscales Partners has secured a follow-on investment into Pioneer Diagnostics Center (PDC), a diagnostic imaging service provider in Ethiopia, buying a controlling stake in the company. Zoscales originally backed PDC in May 2020 as the fifth portfolio company in its maiden fund.
With this investment, Zoscales will inject additional capital to help PDC expand its presence in Ethiopia by scaling up beyond Addis Ababa. PDC is the largest private sector healthcare diagnostics service provider in Ethiopia, offering imaging services including MRI, CT, and ultrasound, among others. The company, which was established in 2006, pioneered the first diagnostic imaging business providing MRI services in Ethiopia.
3. East Africa: DFC makes $1m equity investment in e-commerce company
The U.S. International Development Finance Corporation (DFC) announced the disbursement of a $1 million equity investment in Kasha Global Inc., an e-commerce company that provides women’s health and personal care products to customers in Rwanda and Kenya, alongside investments from Finnfund and Swedfund. This investment was made through DFC’s portfolio for Impact and Innovation (PI2) initiative, which aims to finance early-stage, high-impact solutions to challenges facing developing countries.
4. Nuwa Capital announces first close of fund; targets $100m
Dubai and Riyadh-based Nuwa Capital has announced the first close of its flagship fund – Nuwa Ventures Fund I (NVFI), having raised three-quarters of its $100 million target.
The fund primarily targets rapidly growing markets in MENA and neighbouring geographies, including sub-Saharan Africa, Turkey and Pakistan.
Nuwa Capital was founded in February 2020 by Khaled Talhouni, Sarah Abu Risheh and Stephanie Nour Prince in response to a lack of impactful operational and strategic support from investors. To this effect, the fund launched the ‘Nuwa Network’, a close-knit network of founders and operational experts, to help startups navigate challenges with scaling and expansion, among others.
5. Metier invests in Energy Vision via Sustainable Capital
Metier, through its most recent Sustainable Capital Fund, has made a substantial investment into Energy Vision to grow the provision of reliable, clean-energy, cost-effective and environmentally friendly solutions to powering telecom equipment for mobile network operators and telecom tower companies.
The partnering is centred around Energy Vision’s ambitions to increase its customer base and installed site portfolio, resulting in reduced reliance on carbon-based energy sources.
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