Atta Africa Financial Update

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.

Executive summary: Silicon Sahara.

The African continent is on the verge of something big again. This, at least, is the quiet optimism mooted among some African focused investment communities. News of trades and capital flows relating to technology start-ups have been peppered over the deal landscape over the past twelve months. The model of US tech-entrepreneurship seems to be igniting in markets south of the Sahara.

Can these markets stay stable enough to grow the next billion-dollar Internet companies? We think so. The commodities boom is over, but sub-Saharan Africa is still experiencing growth, a remarkable fact considering that the continent is a net exporter of primary commodities - many African economies have already shown that they can sustain a trajectory of economic growth despite the effects of 'resource curse'.

At the risk of generalising what is a very diverse economic, political and social geography, sub-Saharan Africa is gearing up to be a strong host to the continents nascent tech startup scene. Over the next decades, the continent will walk down the same path as China, as more and more manufacturing and services companies look to increasingly stable African economies in which to offshore their operations. The African middle class will in-turn grow, and as the business environments become increasingly wealthy and stable, tech entrepreneurs will continue emerge and flourish.

PCM Capital to invest in First Atlantic Bank Ghana

  • PCM Capital (through its EM growth fund) is acquiring a 15% stake in the bank for an undisclosed sum
  • First Atlantic Bank was founded in 1995 and provides banking services to a number of retail and corporate clients through a network of 19 branches across Ghana
  • Other shareholders of the bank are Lagos-based Kedari Capital and a group of local investors

Adapt IT acquires CQS Technology from Ethos Private Equity

  • JSE-listed Adapt IT has acquired CQS for a cash and script deal worth R217 million (US$13.5m)
  • The sale represents a complete exit for Ethos
  • CQS provides audit, financial and risk management software services to financial services professionals, corporates and the public sector