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. Airtel Africa’s mobile money business gains $100m investment from Mastercard
Airtel Africa, a provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, has announced the signing of an agreement under which Mastercard will invest $100 million in Airtel Mobile Commerce BV (AMC BV), a wholly-owned subsidiary of Airtel Africa plc. AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations and is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
The transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
Mastercard will hold a minority stake in AMC BV upon completion of the transaction, with Airtel Africa continuing to hold the majority stake. The transaction is subject to customary closing conditions including necessary regulatory filings and approvals, and the transfer of specified mobile money business assets and contracts into AMC BV.
2. Sawari Ventures announces final close of Egypt-focused fund
Sawari Ventures, the Cairo-based VC, has announced the final closure of its Egypt-focused fund, with a new commitment of EGP 440 million ($28 million), from Misr Insurance Group, Ekuity, National Bank of Egypt, Banque Misr, Banque du Caire, and Suez Canal Bank.
The fund previously closed EGP 650 million ($41 million) from European Investment Bank, CDC, Proparco, DGGF which is managed by the South African fund Sango Capital, increasing the total fund size to around $69 million to invest in Egyptian technology and knowledge-driven companies.
3. Rwanda: Electric motorcycle company secures investment
Ampersand Rwanda Ltd, Africa’s first electric motorcycle company, has just secured a $3.5 million investment from the Ecosystem Integrity Fund (EIF). The deal is the largest ever e-mobility investment by a venture capital fund in sub-Saharan Africa and marks a turning point in global electric transport.
Headquartered in Kigali, Rwanda, Ampersand assembles and finances electric motorcycles (‘e-motos’ or ‘e-bodas’) that are cheaper, cleaner and better performing than the 5 million petrol motorcycle taxis in use across East Africa. Ampersand’s vehicles produce at least 75% less carbon than petrol motorcycles and zero tailpipe emissions. Ampersand also builds and operates a network of battery swap stations – allowing drivers to change batteries faster than refilling a tank with petrol.
4. Apis Growth Fund II exits payments company
Apis Growth Fund II, a private equity fund managed by Apis Partners, has entered into an agreement to sell the whole of its interest in third-party payments enabler Tutuka to SaltPay.
The fund invested in Tutuka in August 2019, acquiring a 62.6% shareholding in the company. Over the course of the investment, Apis has leveraged its expansive network in global financial services to help Tutuka grow its international presence and has seen the company more than double the number of clients onboarded annually. As a result of the transactions, the Fund will become a shareholder in SaltPay and will continue to play an integral role in assisting Tutuka with its continued growth. Tutuka’s management team will remain as management and shareholders.
5. AgDevCo makes follow-on investment in East African poultry company
AgDevCo has announced a $3 million follow-on mezzanine debt investment into Uzima Chicken Limited, a poultry company operating in Rwanda and Uganda.
AgDevCo’s first investment in 2017 helped launch Uzima in Rwanda. From a brownfield site, the company has grown rapidly and now reaches customers in over 59,000 households. This investment provides Uzima with further capital to expand its production capacity, vertically integrate into poultry feed and widen its already significant impact reach across the Great Lakes region.
In addition to providing growth capital, AgDevCo has supported Uzima with technical assistance, including by recruiting and training a network of veterinary staff.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.