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December 2017

05 December 2017

EU earmarks $501 million for peace and security in Africa

The European Union (EU) on Tuesday disclosed that it had allocated the sum of 430m Euros to security and peace building in Africa from 2014 to 2020.

By: Alex Enumah | This Day, Nigeria

To read more, click here


November 2017

29 November 2017

Meeting with Admiral Mohab Mamish, Chairman of the Suez Canal Economic Zone (SCZone)

On the 28th November, British Expertise International and BCA-IA members were delighted to be joined by Admiral Mohab Mamish, Chairman of the Suez Canal Economic Zone (SCZone), who discussed this state-of-the-art economic hub which aims to bring together business from around the world and the region to consolidate their international standing, while offering easy access to the region's markets and talent. It will provide its customers with world-class value-added supply chain activities and raise the bar for future industrial parks.

For the presentation please click the link below: 

29 November 2017

Press release | Statement by the Presidency of the European Business Council for Africa (EBCAM) on the occasion of the AU-EU Summit 2017

The European Business Council for Africa (EBCAM) is pleased to have been part of the EU-Africa Business Forum 2017, which preceded the AU-EU Summit, with the Presidency represented by Karen Taylor during the closing ceremony on November 27 2017. Representatives from EBCAM member organisations BCA-IA, Afrika Verein and NABC were also in attendance.

“Europe and Africa should strengthen their cooperation in the field of trade and investment over the coming years. We ask the European Commission to speed up the implementation of the new External Investment Plan and to continue to incorporate the private sector as an integral part of its development strategy for Africa.

The main challenges to investment by businesses in Africa are the deficits in infrastructure, energy and professional and vocational education. Europe and Africa can mobilise public and private resources to strengthen these key factors to encourage more local production on the African continent.

EU and African governments should continue to push forward concrete financial instruments and improvements to business environments to promote the development of a strong private sector in Africa. This will ensure an increase of European Foreign Direct Investment into the continent which will create jobs and prosperity in Africa and Europe”, said Karen Taylor on the occasion of the AU-EU Summit in Abidjan on 29 November 2017.


November 2017

15 November 2017

Affordable Housing Conundrum in sub-Saharan Africa

African cities become the new home to over 40,000 people every day.  The UN projects that by 2050 there will be about 1.5 billion people within the region.  With working population growing 4 fold 2000-2050.

This poses a housing challenge for all these countries, as many metropolitan areas lack housing infrastructure and some rural regions lack housing altogether. In 2010, in London United Nation’s head of housing agency proclaimed that: “After HIV and Aids, the biggest threat to sustainable development in Africa is rapid and chaotic urbanisation”.

Read more: click below PDF


November 2017

13 November 2017

Investing from the Cape to Cairo – October 2017

Casting around for the theme for this month's column, we were, for a moment, stumped. That's because recent private capital deal activity in Africa has proved to be something of a mixed bag. No coherent trend or strategy seemed apparent, But, despite that, we did find a few interesting gems for you in the second half of September though the end of October.

Renewable energy opportunities continued to provoke a lot of investor interest. The biggest transaction took place in late September. The deal was signed during U.N. week and took place during Invest Africa's gathering that week in Manhattan. The investor was Highland Group Holdings, who agreed to invest $100 million of equity in Symbion Energy’s planned $370 million methane gas power generation project on Lake Kivu in Rwanda. While this is the first African project backed by Highland, the group's renewable energy projects elsewhere in the world include the Deutsche Bucht and Veja Mate offshore wind energy projects in Germany.

October saw an interesting trade sale in the renewable sector. Fenix International, a venture-backed renewable energy company with offices in East Africa and Silicon Valley, has been acquired by ENGIE.  According to Crunchbase, Fenix has raised over $16.6 million since 2008 and counted Alphamundi, GVEP International, GDF Suez, Schneider Electric and Orange France Telecom among its backers.

As a result of this acquisition, Fenix becomes the first solar home system provider to link with a major energy firm. Fenix employs 350 people, operating predominantly in Uganda and has recently expanded into the Zambian market. Its client base already exceeds 140,000 customers, and its felt that ENGIE's involvement will accelerate he firm's roll out of its services to other African markets.

Another solar home provider, Mobisol, featured in the news in October.  Zurich-based development asset manager responsAbility Investments struck what’s described as an eight-figure debt deal with Mobisol, the private equity-backed provider of off-grid solar home systems. The transaction involves the establishment of a special purpose debt vehicle which will be known by the acronym MOOVE, (Mobisol Off-Grid Financing Vehicle), with capital provided by two of responsAbility energy funds.

Mobisol will use the vehicle to support its growth in Tanzania, tapping it to provide financing for the electrification of over 15,000 households and small businesses. According to a company representative, the new structure is already exciting interest from a varied group of investors including impact investors, family offices and DFIs. At an aggregate level, some people feel confident that MOOVE could help structure a completely new asset class in the pay-as-you-go universe, attracting a new set of commercial and institutional investors who are keen to invest in simple and secure investment vehicle structures.

One private equity firm that's had a busy few weeks has been AFIG Funds. They put three transactions up on the board in the last 6 weeks. Two were financial services deals and one was in real estate, where AFIG made a follow-on investment in Primrose Properties Ghana on behalf of their first funr=d, the Atlantic Coast Regional Fund. 

Accra-based Primrose Properties is a special purpose vehicle which AFIG first backed in April 2015. According to Patrice Backer, AFIG's COO, the asset's solid performance accelerated the decision to invest in a follow-on round. The fresh capital will be used to fund the development of a middle-income housing community in Sakumono, a suburb of Ghana’s capital.

Of AFIG's two financial sector deals, the first took place in late September. Again on behalf of their first fund, AFIG backed Nigeria’s FSDH Merchant Bank, a financial services company that offers the market a range of services including merchant, corporate and investment banking solutions as well as asset and pension fund management. Terms of the deal were not disclosed.

The private equity firm followed up the FSDH investment with another banking deal two weeks later. First Atlantic Bank started life as a Merchant Bank over 20 years ago, before switching its focus in 2011 and becoming a full-scale commercial bank in 2011.

Staying in the realm of financial services deals, private equity form AfricInvest agreed to invest $55 million to take a 14.3% ownership stake in Britam Holdings, a publicly-listed insurance company headquartered in Nairobi. The transaction is being structured through a special purpose vehicle set up on behalf of AfricInvest Fund III, DEG, FMO and Proparco, which will be managed by the Tunis-based private equity firm.

Of the investment fund launches announced in the last few weeks, two were particularly significant.  A.P. Moller Capital, an affiliate of the Maersk shipping line family’s A.P. Moller Holding, added $100 million to its new Africa-focused infrastructure fund which held a $550 million interim close in August. The new commitment came from PFA Pension, Denmark’s largest pension fund, who join three other Danish pensions funds - PKA, PensionDanmark and Lægernes Pension – on the fund's roster of LPs.

In September, Capitalworks, one of Africa’s larger private equity firms, launched Africa Capitalworks, a planned $300 million investment company that will target mid-market opportunities in a number of sectors across sub-Saharan Africa outside South Africa. The investment vehicle will be directed by one of Capitalworks’ founders, Beth Mandel, and Nana Sao.

Other gems in the mixed bag include possibly Botswana's biggest private equity deal. Investec Asset Management and RMB Ventures completed their acquisition of Kamoso, a retailer and consumer goods business. While the financial details of the acquisition were not revealed, the stake was brought from Standard Chartered Private Equity and New York investor Development Capital Partners. They originally invested in Kamoso in 2015 in a deal reportedly valued at approximately $45 million at the time.

Thanks for reading the column. As we always ask, please let us know your ideas about subjects to cover in this column every month. And of course, please tell us what you like or dislike about it. It all helps our ongoing quest for improvement.


Africa Capital Digest’s Editor & Publisher, Allan Cunningham, provides his monthly summary of the deals and activity that’s helping to drive fundraising across the continent.



September 2017

25 September 2017

Kenya-UK presentation latest for PS Trade


September 2017

12 September 2017

What next for commercial governance in Sub-Saharan Africa?

Steven King, Group Head of Corporate Compliance at Travelex, describes the latest project to tackle the widespread corruption that stifles economic growth and development in Sub-Saharan Africa. The only viable solution, he believes, lies in collaboration across the full governance eco-system and needs to happen at all levels

In 2015, a report from Transparency International suggested that around 75m people in Sub-Saharan Africa had paid a bribe in the preceding year. The report also suggested poor people in the region are twice as likely as the richest to have made a payment. The survey, of more than 43,000 people across 28 Sub-Saharan countries, revealed that at least half of those who paid bribes did so many times a year.

Some of the bribes are to escape punishment by the police or courts, but many are paying bribes to get access to basic services. Corruption in the region is nothing new, but many feel it’s on the rise and that their governments are failing.

A new solution is now bringing together expertise from the public and private sectors to stamp out practices that are preventing many regions from achieving economically. The project, backed by the Business Council for Africa-Invest Africa, draws on input from various organisations including the UK’s National Crime Agency.

It brings together people who can offer advice, training and mentoring on every part of the process and who have long experience in fighting corruption and tracing illegal assets in other countries; for example, the legal foundations of the UK’s asset-recovery legislation come from Irish law, where the government has a history of efforts to confiscate terrorist funding.

There are good reasons for doing this. The 2016 Ibrahim Index of African Governance reported that the average score for corruption and bureaucracy had worsened by 8.7 points across the continent over the previous decade. Thirty-three countries had deteriorated, 24 of them falling to their worst ever level in 2015.

Please click the link below to read the full article: 



September 2017

04 September 2017

Djibouti - A country on the rise

A series of major infrastructure developments in Djibouti has placed the country firmly on the radar of international investors.

In June 2017, the East African country opened the third of four ports – a move designed to significantly increase import and export capacity, and led by the Djibouti Ports and Free Zones Authority (DPFZA). Djibouti currently handles around 90% of Ethiopia’s inbound trade and is regarded as the gateway to one of the fastest growing regions in the world.

The ports form part of a wider US$15billion infrastructure drive, which also includes a Liquefied Natural Gas facility and oil terminal. Two airports will also be constructed, which will be served by the newly relaunched Air Djibouti. The national carrier will play a crucial role in establishing Djibouti as a major logistics centre for the region and has already taken delivery of a number of planes, including a Boeing 737 and Boeing 767-200.

As well as the seas and skies, capacity has also been increased overland. This year saw the completion of the new Addis Ababa-Djibouti Railway; 752km of track linking Ethiopia’s capital with the Port of Djibouti. With trains reaching speeds of 160km/h for passengers and 12km/h for cargo, it has cut journey times between the two hubs to 12 hours, compared to 3 days by road.

These dramatic improvements will serve the development of Djibouti’s International Free Trade Zone (DIFTZ). When fully realized, DIFTZ is set to become the largest in Africa. Phase I is due to be completed by the end of 2018, covering 240 hectares. It is expected to handle $7billion in trade within two years.


August 2017

21 August 2017

SIERRA LEONE: More heavy rain forecast this week after over 500 killed and missing in Freetown landslide | Africa Confidential

By Patrick Smith
Editor of Africa Confidential 

We start in Freetown where rescue workers are trying to prevent more loss of life with renewed downpours expected this week and in Abuja, President Muhammadu Buhari is back on-seat and addressing the country on security matters. In Angola, the MPLA, headed by presidential candidate João Lourenço, is set to cruise to victory on Wednesday (23 August) against a weak opposition; the turnout may give a clearer idea about sentiment on the ground. Still on elections, opposition leader Raila Odinga submitted his election petition to the Supreme Court but insiders expect it will fail. Lastly, after a week of speculation about the possibility of Grace Mugabe being charged with assaulting a model in a Johannesburg hotel, the South African government gave her diplomatic immunity. Business sources claim there was a behind-the-scenes deal over landing rights for the two country's airlines.

SIERRA LEONE: More heavy rain forecast this week after over 500 killed and missing in Freetown landslide
Officials and volunteers are mapping out the most vulnerable areas around Freetown amid fears there could be another devastating landslide this week with deluges forecast for tomorrow (Tuesday 22 August) and Wednesday.

Seneh Dumbuya, the chief coroner in Freetown, told Reuters news agency yesterday (20 August) that rescue workers have brought out 499 bodies since the landslide at Mount Sugar Loaf on 14 August. Locals say another 600 people are still missing; some people trapped by rubble and mud in air pockets have been able to send text messages. The biggest risks now are that a fresh deluge could trigger another landslide, and that cholera could spread because of the shortage of clean water. Environmentalists say unregulated logging in the hills outside the capital and an absence of buildings regulation are to blame for the severity of the disaster.

NIGERIA: Buhari's dawn broadcast promises harder line on Biafran separatists and Islamist insurgents
After a day back in Abuja, a revived-looking President Muhammadu Buhari, who has spent most of this year receiving medical treatment in London, made a fiery televised address to the nation promising more determined action against Boko Haram. He added that attempts by citizens in the south-east of Nigeria to secede – a repeat of the calls that triggered the Biafran civil war in the 1960s – were a red line that no political organisation could be permitted to cross.

Although Buhari repeated the government's position that Nigeria's national unity isn't negotiable, he indicated that he would be open to a dialogue with secessionist groups. 'Every group has a grievance. But the beauty and attraction of a federation is that it allows different groups to air their grievances and work out a mode of co-existence,' he said.

ANGOLA: MPLA's João Lourenço pledges sweeping economic reforms ahead of 23 August presidential election
With his victory assured in this week's presidential elections, the MPLA's candidate João Lourenço offers a programme to restructure the oil-dependent economy and reiterates his commitment to crack down on state and corporate corruption.

Although those pledges ring hollow to the many Angolans who point out that little progress has been made on those issues during the MPLA's four decades in power, opposition parties are unlikely to make much headway in the elections. The biggest opposition party, UNITA, has been missing in action although one of its former militants, Abel Chivukuvuku, the candidate of Casa-CE, has been leading a much livelier campaign and winning over some in the coastal cities as well as the opposition redoubt of Huambo.

KENYA: Little prospect for success of opposition election petition in fast-track High Court case
Seven Supreme Court judges must rule on opposition leader Raila Odinga's petition to overturn the victory of President Uhuru Kenyatta in the 8 August elections. Insiders say the opposition's petition has far less detailed information than the complaint about the disputed 2013 elections which the Court rejected.

Kenya's courts do not countenance the sort of lengthy legal argumentation and demand for data sets from the electoral commission that was a feature of the opposition petition in Ghana in 2012. The Ghana courts took eight months to consider – and ultimately reject – the petition. But the process did give the opposition a forensic knowledge and understanding of the electoral reporting system, which it used to great effect in last year's elections.

Odinga submitted the petition last Friday (18 August), having earlier said he would prefer to mobilise his supporters against what he insists is a stolen election rather than engage with the judiciary. 'Our decision to go to court constitutes a second chance for the Supreme Court.' It can, he added, '…redeem itself, or like in 2013, compound the problems we face as a country.'

ZIMBABWE/SOUTH AFRICA: Did a deal over landing rights help Grace Mugabe get diplomatic immunity after facing prosecution for assault?
After internal argument in the government, South Africa's Foreign Minister Maite Nkoana-Mashabane, confirmed that President Robert Mugabe of Zimbabwe's wife, Grace, was being granted diplomatic immunity following calls for her to face criminal charges over allegations that she beat up a young model in a Johannesburg hotel last week.

Some insiders are linking the decision to a sudden resolution in a dispute over landing rights between the national airlines of South Africa and Zimbabwe. After both airlines had to ground their flights on the busy Johannesburg to Harare route due to a row over operating permits, South African Airways resumed its flights to Zimbabwe just hours after Grace Mugabe's departure late on Saturday (19 August).


ZAMBIA: In a dramatic climbdown, government releases opposition leader Hakainde Hichilema and drops all charges

MALI: President Keïta withdraws plans for constitutional reform devolution

TOGO: Opposition demonstrates in Lomé against 50 years of the Eyadéma dynasty

Don't forget to check www.africa-confidential.com for our latest stories.


August 2017

11 August 2017

Hogan Lovells launches ground-breaking legal guide to investing in Africa

Hogan Lovells launched its first Special Report on Investment in Africa 2017, an extensive and innovative guide to the legal framework for investment in 23 African countries.

Produced in collaboration with African Law and Business (ALB), it provides potential investors with easily comparable country-by-county analysis and guidance on the investment landscape, including an overview of the local legal framework on matters such as local content rules, real estate ownership, taxation, dispute resolution, and employment.

To read the Report online, click here.