Africa’s first fintech API super-connector raises new investment. Telco group Millicom exits its Africa operations.

Welcome to another interesting week of investment and finance moves by Africa industry players. Now let's get into the highlights and top stories from the week.

Private Equity :

  • The Multilateral Investment Guarantee Agency (MIGA) a part of the World Bank Group, has guaranteed up to $37.1 million to the Africa Infrastructure Investment Fund 3 (AIIF3). The guarantee will cover the fund’s equity and quasi-equity/shareholder loan investment will help Bboxx an Energy  Solution Provider to provide clean Off-Grid Solar Energy to Kenya, Rwanda, and the Democratic Republic of the Congo (DRC) markets.

  • Moroccan-based Magriser Group a leader in the distribution and installation of turnkey micro-irrigation solutions has secured a majority investment from Amethis MENA Fund II as part of the first operation of the Luxembourg-based strategy to commit $7m to $21m in high-growth sectors. The investment will fund Magriser’s ambitious plan to expand its operations to other Sub-Saharan Africa.

Venture Capital Deals:

  • Nigeria-based and Africa’s first API super-connector Okra has raised $3.5 million from Accenture. The company enables businesses and developers to build personalised digital services and fintech products using its open finance API services. The new seed round will fund the expansion of its data infrastructure across Africa.

  • A Cairo-based grocery delivery startup Appetito has raised $450,000 in seed funding. The company has built a delivery service on reducing delivery times through mini fulfillment centers from where orders are delivered to customers. The startup’s ability to reduce delivery times may be due to their deployment of a so-called dark stores model: storing inventory in “mini fulfillment centers” from where orders are delivered to customers. The funding round was led by early-stage investor Ahmed Al Alola, Afroprenenurs Fund, and  Jedar Capital.

  • Egypt-based Laverie an on-demand dry cleaning and laundry app has raised six-figure funding round from A15 a company that invests in digital products and technology brands. The investment will fund the company’s expansion of its operations and new services to meet the demand from unserved clients in Greater Cairo and the Gulf.

  • Mail-based insurance tech startup Oko has raised a seed investment of $1.2 million. The new investment led by Newfund and ResiliAnce and includes Mercy Corps Venture, ImpactAssets, RaSa, and Techstars as participants in the funding round will fund Oko’s expansion in providing automated insurance products to Ivory Coast and other African markets.

M & A Activities:

  • Millicom International Cellular has exited its complete operations in Africa. The company which trades as Tigo has signed an agreement to sell its entire Tanzania operations to a consortium led by Pan African Group Axian, who participated in the acquisition in Millicom’s Senegal operation in 2018. The AirtelTigo joint venture in Ghana which is a joining venture with Bharti Airtel Limited has been acquired by the Government of Ghana, with Millicom taking a $25 million charge as a result of this agreement.

  • Nigeria leading Banking Group Access Bank is acquiring 78% of Africa Banking Corp Botswana from Atlas Mara - The Sub-Saharan Africa banking investor. The cash transaction representing a 1.13 times book value including a deferred portion payable 24 months after the deal closes, will increase Access Bank’s presence in Africa as part of its pan Africa growth strategy.

  • South Africa Altron has acquired Lawtrust the digital signatures services company from Etion for R245 million. The deal which is subject to the competition commission’s approval will position JSE listed Altron as a One-Stop-Shop for digital and information security while leveraging Lawtrust brand recognition as the first accredited authentication service provider and certified authority in public trusted digital certificates and digital signatures

  • Mauritian-based investment company TRT Investments has acquired a 49% for $10million in leading South Africa-based consumer goof distribution company KAS Africa. The company that manufactures personal care, baby care, and oral products will use the new investment to build a new manufacturing plant to meet increasing customer demand.

  • South Africa-based Industrial Development Corporation (IDC) the country’s largest development finance institution (DFI) has sold its remaining 30.73 % stake in GSI Lucchini SpA a leading supplier in Africa mines to JSW Steel Italy S.r,l for €1 million.  The  Share Purchase Agreement (SPA) between the two firms is subject to regulatory approval.

Fundraising:

  • Airtel Africa a leading operator of affordable and innovative mobile service in 14 African countries has signed a new $500 million loan facility of a combination of revolving credit facility and term loans with tenor of up to 4 years with a group of banks which includes BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered, Bank of America, Kotak Mahindra Bank and Axis Bank to partially refinance the telecom group’s €750 million Euro-denominated bond to strengthen the group liquidity position.

  • Egypt based ACWA has signed a $114 million financing package with a group of financiers namely; the Africa Development Bank (AfDB), the European Bank for Reconstruction and Development( EBRD), the OPEC Fund for International Development (The OPEC Fund), the Green Climate Fund (GCF) and Arab Bank. The financing package which is made of $17.8 million from the AfDB, $ 36 million from EBRD, $18 million from the OPEC Fund. $23.8 million from the GCF, and $18 million from Arab Bank, will fund the construction of the Kom Ombo solar plant, the largest private solar plant in Egypt which will add 200MW energy to the country’s energy capacity.

  • Atlantica Ventures an African-focused venture capital firm has raised a $50 million fund to invest in technology companies seeking funding from seed stage onwards. The fund's investment focus will be fintech, logistics, agri-tech, IoT, security, and B2B marketplaces in key African markets; Kenya, Ghana, Nigeria, South Africa, Tanzania, and Ivory Coast.

Private Credit

  • The International Finance Corporation (IFC) a member of the World Bank has proposed an investment of $20 million in Greenpoint Capital Special Situations Credit Fund. The fund managed by South Africa-based Greenpoint Capital will deploy the capital to financially distressed companies operating in Southern Africa.

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By Africa Finance Review