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. Actis to acquire City Lodge hotels in Kenya and Tanzania
South Africa’s City Lodge Hotels has announced it will sell its East African operations, comprising its hotels situated in Kenya and Tanzania.
The first transaction relates to the disposal of shares beneficially owned by the company in Kenya to Ukarimu Limited, which is owned by Actis Africa Real Estate 3 LP, a global investor in real estate and infrastructure.
The second sale of shares transaction relates to the disposal of shares owned by the company in Tanzania to Faraja Limited, which is also beneficially owned by Actis.
2. Acumen Capital Partners agriculture fund closes at $58m
The Acumen Resilient Agriculture Fund (ARAF) closed on June 30 at $58 million. This equity fund provides capital to support African agribusinesses that help smallholder farmers adapt to climate change. Sponsored by Acumen and anchored by Green Climate Fund (GCF), the fund is supported by the Dutch entrepreneurial development bank (FMO), the Soros Economic Development Fund, the French development institution PROPARCO (through FISEA+, the AFD Fund advised by PROPARCO), the Children’s Investment Fund Foundation, IKEA Foundation, Global Social Impact, and other investors and funders. The fund is managed by Acumen Capital Partners, a wholly owned subsidiary of Acumen.
“Smallholder farmers feed the world, but they are among the most affected by the climate crisis,” said ARAF’s managing director, Tamer El-Raghy. “ARAF’s impressive $58 million close, $8 million above our initial target for the fund, is a watershed moment and, with only 5% of climate investment directed toward adaptation, signals the beginning of a shift in climate finance. By investing in agri-startups in East and West Africa, ARAF can reduce poverty, build climate resilience, and demonstrate the impact of investing in resilient agriculture. Since we started deploying capital in 2020, our team has invested in five companies operating in Kenya, Uganda, and Nigeria.”
3. Tana Africa Capital acquires stake in East African meat processor
Tana Africa Capital, a pan-African private equity firm, announced its latest investment through its second fund Tana Africa Capital II (TAC II) into Africa Protein Holdings Limited, which is a Mauritius based holding company which includes Quality Meat Packers Ltd and Anirita Poultry Farm Plc (the QMP Group). The Velji family remain the majority owner of the business.
Founded in the 1980s as a retail butchery in Nairobi, Kenya the QMP Group currently engages in procuring, farming, hatching, breeding, processing, packaging, distributing, marketing, and retailing animal-sourced meats. The product offering includes a basket of proteins including beef, goat, chicken, lamb, fish and related value-added snacks. Quality Meat Packers operates a modern slaughterhouse and meat processing plant, and Anirita Poultry Farm is an integrated poultry producer and animal feed producer. QMP Group is halal and export certified and supplies Eastern Africa and several international markets including the UAE, Saudi Arabia, Oman and other destinations in Africa and the Middle East.
4. South Africa: 27four Black Business Growth Fund II backs Vuna Partners
The 27four Black Business Growth Fund II Partnership (27four BBGF II), a blended finance partnership between the South African Government through the Jobs Fund, and South African institutional investors, has announced its commitment to Vuna Partners Fund which was concluded at the end of June 2021.
Vuna Fund I is a black private equity fund, with a generalist mid-market strategy, led by founders Siya Nhlumayo and Shafiek Rawoot. The Vuna Partners investment thesis is premised on backing management teams that are strong in their respective industries with a demonstrable track record, and driving sustainable value creation through meaningful alignment of Vuna Fund I’s interests with that of its investee company management teams and strategic sector partners.
27four BBGF II’s commitment takes the Vuna Fund I fund size to R435 million (about $29 million), alongside committed capital already secured from its first close in August 2020.
5. Helios invests in medical equipment distributor
Helios Investment Partners, the Africa-focused private investment firm, has entered into an agreement to acquire a majority stake in the largest and most diversified group of medtech companies in Morocco. The consolidated group operates in medical devices, in vitro diagnostic and pharmaceuticals, and comprises four companies: Techniques Science Santé (T2S), IM Alliance, Cyclopharma and Binarios.
Under the leadership of Abderraouf Sordo, the group has grown to become the prominent medical equipment distributor and maintenance provider in Francophone Africa, three times larger than its nearest competitor in the region with revenues of over $100 million. Through long-standing distribution agreements with original equipment manufacturers (OEMs), including GE Healthcare, Varian, B. Braun, Zeiss, bioMérieux and other global blue-chip manufacturers, the group provides a large base of public and private healthcare facilities with access to high-end medical solutions. Importantly, the company has cemented its reputation as the partner of choice to its customers by providing reliable and unique aftersales and maintenance support services. Looking forward, the group is focused on continuing to support the rapidly growing healthcare market in Francophone Africa driven by a combination of favourable medical insurance coverage trends and increased public and private investments in healthcare infrastructure.
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