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. Tana Africa Capital acquires stake in alcoholic beverage company
Private equity firm Tana Africa Capital, through its second fund Tana Africa Capital II (TAC II), invested in Kensington Distillers and Vintners (KDV), a fast-growing alcoholic beverage manufacturing and distribution business with operations in South Africa, Kenya and Nigeria. The investment was made directly into KDV Holding that owns majority stakes in Truman & Orange South Africa, Monument Distillers East Africa and Monument Distillers Nigeria.
Since its founding in 2014, KDV has established a fast-growing portfolio of wine and spirits brands including local manufacturing capability, in the key African markets of South Africa, Kenya and Nigeria.
2. Ghana: Injaro exits seed producer after 10-year holding period
Injaro Agricultural Capital Holdings Limited (IACHL), the impact investment fund managed by Injaro Investments, announced the sale of its 30% stake in seed producer M&B Seeds and Agricultural Services Ghana Limited (M&B) to the founder and other shareholders. This share sale represents a full exit from M&B after a holding period of ten years.
Injaro invested in M&B in May 2011. The company aimed to leverage the investment from Injaro to expand its processing capacity, increase seed production through both its farm expansion and the set-up of an outgrower scheme, improve marketing and strengthen middle management.
3. AIIM, Adenia Partners and IFC in tower company deal
African Infrastructure Investment Managers (AIIM), Adenia Partners and the IFC have partnered to invest a total of $130 million to support Eastcastle Infrastructure, a company specialising in Africa’s telecoms tower sector.
Eastcastle was established in 2020 by Peter Lewis and Pankaj Kulshrestha, the former CFO and COO respectively of Eaton Towers. The funding will support Eastcastle’s build-to-suit strategy, to develop new telecom towers initially in the Democratic Republic of Congo, Nigeria and Côte d’Ivoire. The number of towers across the region needs to increase significantly to accelerate the deployment of bandwidth intensive technologies such as 3G, 4G and 5G by mobile network operators and to increase quality connectivity for individuals and businesses.
4. Kibo Capital in Rwanda exit
Kibo Capital Partners completed the sale of its 6.01% stake in I&M Bank Rwanda (IMR), the second largest bank in Rwanda.
The acquisition was made in April 2017 by The Kibo Fund II LLC as part of the bank’s successful IPO. Throughout its investment period, Kibo Capital Partners saw IMR consolidate its position as a market leader by strengthening its value proposition in a full range of banking services; it also implemented successfully a digitalisation strategy by investing in a new core banking system aimed at providing a suite of digital solutions to its customers.
This exit marks the first full exit of The Kibo Fund II LLC.
5. DPI and AfricInvest announce completion of agriculture merger
African Development Partners II (ADP II), a fund advised by private equity firm Development Partners International (DPI), and fund manager AfricInvest have announced the completion of Compagnie Marocaine de Goutte à Goutte et de Pompage’s (CMGP) landmark merger with Comptoir Agricole du Souss (CAS), creating a new champion in Moroccan and African agriculture, which will be known as CMGP-CAS.
The merger brings AfricInvest into the partnership alongside ADP II through an investment targeting the expansion of efficient irrigation and agricultural water management technologies to enable greater output and sustainability in agricultural production. Through its involvement, the AfricInvest team also aims to support the growth of CMGP-CAS’s partnerships across the African continent, mobilising its own network, especially in East and West Africa.
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