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. Root Capital signs $35m commitment from DFC
The U.S. International Development Finance Corporation (DFC) announced $35 million in investment support to Root Capital, an impact investor headquartered in Massachusetts that offers farmers around the world a path to prosperity.
DFC’s investment will provide financing to small and growing agricultural businesses in Latin America, sub-Saharan Africa and Southeast Asia. This financing will help break the cycle of rural poverty, reduce food insecurity, and increase environmental sustainability, while responding to the Covid-19 related challenges facing smallholder agriculture. It will also advance women’s economic empowerment, with at least 50 percent of Root Capital’s lending benefiting gender-inclusive businesses.
2. TLG Capital in up to $20m investment agreement with Fidelity Bank Nigeria
TLG Capital has announced that it would be investing with Fidelity Bank Plc an amount of up to $20 million. Through TLG’s Africa Growth Impact Fund (AGIF), the investment would be channelled towards the development of SMEs focused on healthcare, education and consumer sectors, amongst others, in the country.
Fidelity Bank Plc has over the years remained at the forefront of SME development in Nigeria as exemplified by its provision of innovative funding options and other forms of relevant support to budding and established entrepreneurs. Both organisations recognise the important role SMEs play in driving economic development.
Fidelity Bank Plc is a commercial bank in Nigeria with over five million customers who are serviced across its 250 business offices and various other digital banking channels. The bank focuses on select niche corporate banking sectors as well as micro, small and medium enterprises.
3. Uganda: Partech and Enza Capital back asset finance company
Tugende, a technology-enabled asset finance company in East Africa has closed $3.6 million in additional equity financing.
The round was led by Partech, with participation from Enza Capital and regionally based angel investors. The investment, which was agreed and structured in 2020, is an extension of Tugende’s series A, for which the first close was announced in September 2020, and led by Toyota Tsusho’s Mobility 54. This brings the total amount of equity capital raised for the series A to $9.9 million. The new funding will be deployed immediately by Tugende to keep up with its organic word of mouth demand and will support closure of new debt capital to fuel Tugende’s strong portfolio growth in Uganda and Kenya.
4. South Africa: FNB acquires fintech company to boost its township business
South African bank FNB has acquired 100% of Selpal – a fintech company that operates specifically in townships and rural sectors of the economy.
Gordon Little, FNB Business CEO says, “As part of our broader strategy, we are dedicated to help support small businesses that are predominantly cash-based and operate in a less formal manner. Our latest acquisition and integration of Selpal complements the significant milestones we have reached in executing on this strategy. Selpal already has a footprint supported by an integrated system that connects informal retailers such as spaza shops with FMCG suppliers, wholesalers and manufacturers. Their user-centric digital platform, was designed and built using direct observations, engagements and understanding of the pain-points that various users experience along the entire FMCG supply chain in the informal sector, from manufacturer to consumer.”
5. Futuregrowth Development Equity Fund invests in biomedical engineering start-up
The Futuregrowth Development Equity Fund (DEF), on behalf of its clients, has recently invested in a pioneering Cape Town-based biomedical engineering start-up, Impulse Biomedical.
Impulse’s flagship device, the ZiBiPen, could revolutionise the emergency treatment of life-threatening anaphylaxis. The device was developed by two passionate engineering graduates, Gokul Nair and Giancarlo Beukes, while completing their masters’ degrees in biomedical engineering at the University of Cape Town. The company aims to make these and other life-saving healthcare technologies accessible to the developing world.
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