Daystar Power raises $20 million. Dubai’s DP World acquires South Africa’s Imperial Logistics.

Also, Africa’s largest mezzanine fund manager nears target fund size of $350 million, Injaro Agricultural Capital Holdings sells a 30 percent stake in seed producer, Sovereign Fund of Egypt seeks to raise about $111.5 million.

Africa Finance Review

This week’s roundup of news, trends and insights for you the time-conscious Africa-focused business executive finance professional, and policymaker.

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2 things first

1) Daystar Power closes a $ 20 million loan facility

Nigeria-based Daystar Power, an off-grid solar installer serving commercial and industrial customers in West Africa, has closed a $20-million (EUR 16.9m) loan facility from the International Finance Corporation (IFC).

Why is this important? Sub-Saharan Africa continues to have an energy problem which if resolved has the potential to spur an active manufacturing base, increase employment and boost economic output. The need for alternative energy solutions will meet the shortfall from existing power grids as demand grows across the spectrum.

2) Smile Identity raises $7million Series A funding

Smile Identity has secured $7 million in Series A funding. The company’s mission is to make it easier for Africans to prove their identity online and is one of the largest investments ever made into an African identity verification company. Costanoa Ventures co-led the investment with pan-African venture firm CRE Venture Capital.

Why is this important? As online purchases and new payments method adoption increase, the need to provide online security for merchants and customers is not only important but a huge opportunity for start-ups. Building a service that streamlines the verification process will lead to more confidence in the use of online platforms as a standard way of payment moving Africa economies towards a cashless society.


Private Equity Deals :

  • Mubadala an Emirati state-owned holding company has agreed to invest $414 million in African private equity funds with French, state-owned investment bank Bpifrance.     

Venture Capital Deals:

  • The largest Egyptian-based B2B e-commerce food and grocery retailers MAX AB has raised $40million. The investment was secured in a Series A round led by RMBV a major impact investor in North Africa. The funding round included participation from the IFC, Flourish Ventures, Crystal Stream Capital, Rise Capital, and Endeavour Catalyst as well as MaxAB’s existing investors, Beco Capital and 4DX Ventures.

  • Nigerian-based fintech start-up TeamApt, which provides financial services to the mass market in Africa announced the completion of the Series B funding round. The funding round was led by Novastar Ventures, with participation from FMO, CDC, Oui Capital, Kepple Africa Ventures, Soma Capital, as well as a syndicate of local angel investors including Gbenga Oyebode.

  • Smile Identity has secured $7 million in Series A funding. The company’s mission is to make it easier for Africans to prove their identity online and is one of the largest investments ever made into an African identity verification company. Costanoa Ventures co-led the investment with pan-African venture firm CRE Venture Capital.

  • Nigerian-based fintech and lending startup Lidya has announced an $8.3 million pre-Series B funding round. The investment round was led by Alitheia Capital via its uMunthy Fund, with other participating investors including Bamboo Capital Partners, Accion Venture Lab, and Flourish Ventures.

M & A Activities:

  • Shelter Afrique sells Sh1bn stake to Kenya. The deal secured a 3.9 percent stake in Shelter Afrique reaffirming its position as the top shareholder in the Pan-African housing lender.

  • DP World, the Dubai-based port management company has made a bid for South Africa’s Imperial Logistics for $890 million. The has created a 34.5 percent increase for Imperial Logistics on the South African Stock Exchange after the Dubai company offered to buy the entire company.

  • A new champion in African and Moroccan agriculture has been created following a merger between Compagnie Marocaine de Goutte à Goutte et de Pompage’s (CMGP) r with Comptoir Agricole du Souss (CAS). The announcement by African Development Partners and Africinvest will target investment in the expansion of efficient irrigation and agricultural water management.

  • Injaro Agricultural Capital Holdings has sold its 30 percent stake in seed producer M&B seeds and Agricultural Services Ghana to the founder and other shareholders. This is a full exit from the company following a holding period of 10 years by the investment company.

  • African early-stage entrepreneurs are set to benefit from a $100m deal between Seedstars Africa Ventures and LBO France. The deal is part of the new African strategy of the French firm which has made €6.3bn in commitments.

  • Nigeria’s FCMB Group Plc announced that it had purchased a 60 percent stake in AIICO Pension Managers Limited.

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Fundraising Events:

  • Renewable energy boost for Ethiopia as AfDB secures $170.9m. The Green Climate Fund approved the funding to help decentralise renewable energy in six countries across the continent.

  • The International Islamic Trade Finance Corporation agreed to a Euro 10m Murabaha Financing agreement with Bridge Bank Group, Cote d'Ivoire (BBGCI) to Support Private Sector and SME Funding this week.

  • Early-stage venture capital fund, MAGIC fund has raised $30 million to continue backing early-stage start-ups, particularly focused on businesses started by women across the globe

  • More than a quarter of a billion rand ($17.5 million) has been raised by South African venture capital company Kalon Venture Partners. The venture capitalists completed the final section of raising investment and is now looking for South African entrepreneurs to invest in.

  • Verdant Capital raises $7.9m for challenger fintech Zeepay, the fourth major fintech transaction for the investor in the last year. This follows a total of $44 million debt capital raise for companies across Africa.

  • Africa’s Largest mezzanine

  • Africa’s largest mezzanine fund manager Vantage Capital announced the successful first close on its fourth mezzanine fund. Vantage Mezzanine Fund IV is on track to reach its target total fund size of $350 million, with $207 million of commitments from European and US-based commercial investors as well as development finance institutions (DFIs), including IFC, CDC Group and SIFEM, Vantage Mezzanine Fund IV is on track to reach its target total fund size of $350 million

Liquidity Events:

  • The Sovereign Fund of Egypt seeks to raise about $111.5 million to invest in providing high-quality education to the middle class through its new education investment platform.

Economic Updates:

  • The annual inflation rate in Mozambique rose to 5.52 percent in June of 2021 from 5.49 percent in the previous month.

  • The annual inflation rate in Senegal picked up to 2 percent in June of 2021 from 1.3 percent in the previous month.

  • Tanzania’s annual inflation rate quickened to 3.6 percent in June of 2021 from 3.3 percent in each of the previous two months

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