Smile Telecom's $51 million refinancing deal, Ampersand Rwanda raises $3.5 million investment.

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.

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Private Equity :

  • South Africa-based Smile Telecoms Holdings have agreed to a $51 million refinancing plan with its majority owner Al Nahla Group. Smile Telecom with operations in Uganda, Tanzania, DR Congo, and Nigeria will use the funding to strengthen its operations and market position in these Africa Countries.

  • Uganda-based Uzima Chicken, an Agri-business providing hatchery products to the local community, has raised $3 million in mezzanine debt investments from AgDevCo a leading investor in the Africa Agri-business sector. The new funding will be used to scale their production capacity to meet domestic and export demand.

  • Baobab+  a Solar Kit Provider for Africa Countries has secured two rounds of investment totaling €4 million. The investment will fund the company’s expansion into two Francophone Africa countries; Senegal and Ivory Coast and was raised from the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI-OGEF) and Triple Jump managed Energy Entrepreneur Growth Fund ( EEGF).

Venture Capital Deals:

  • Eqyptian based digital payment provider Paymob has received an $18.5 million investment from UAE-based VC Global Ventures. The new cash injection will help fund its expansion operation into Saudi Arabia and other middle east countries.

  • Nigerian-based digital food cooperative startup Price Pally has raised six-figure pre-seed funding round from early-stage investor Launch Africa Venture and VC Samurai incubate. The investment will be used to grow its operation around the country.

  • Egyptian-based Venture Capital firm Algebra Ventures has launched a $90 million second fund to invest in Egyptian-focused startups while exploring investment opportunities in other Africa countries.

  • Rwanda-based motorbike company Ampersand Rwanda has raised a $3.5m investment from Ecosystem Integrity Fund( EIF) one of Africa’s leading venture capital investment funds. The new funding will be used to scale up its operation in building a zero tailpipe emission motorbike that produces at least 75% less carbon than a petrol motorbike, with a battery swapping operation.

M & A Activities:

  • Nigeria-based development bank DLM Capital has acquired Link Microfinance Bank to complement its existing subsidiaries and build a challenger bank offering innovative fintech solutions in the Nigeria Market.

  • Nigeria’s Chemical and Allied Products Plc will be pushing ahead with its merger plans with Paints and Products Nigeria Plc in the second quarter of 2021 subject to the required regulatory approvals.

  • Southern Africa-based Adapt IT a leading provider of specialised software and digital business solution has received an all-cash acquisition offer from Canadian-based Volaris Group. This follows Huge Group’s previous offer to acquire the company.

Companies Updates:

  • Malawi’s FDH Bank Plc, a leading bank, has posted an after-tax profit of K14.4 billion for the year ended December 31 2020 from K5.3 billion posted in 2019. This represents a 117 % increase in profit.

  • Leading Nigeria Bank Access Bank has announced gross earnings of N764.7 billion in 2020 compared to N666.75 billion in 2019. The profit after tax was N125.9 billion.

  • Nigeria-based leading insurance company AIICO has posted a growth of 21.3% in its operation with a gross premium of N60.7 billion in 2020 compared to N50.1 billion in 2019.

Liquidity Actions:

  • Ghana has issued Africa’s largest Eurobond since Covid-19. The $3.025 billion zero-coupon multi-tranche issuance program was deal managed by Rand Merchant Bank ( RMB) the investment banking and corporate arm of First Rand Bank.

  • Tanzania Mortgage Refinance Company( TMRC) has issued a third tranche of a five years bond. The bond will be listed on the Dar es Salaam Stock Exchange (DSE) at a coupon rate of 10.48%. 

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By Africa Finance Review

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