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: There is an anticipation that deal making in the oil & gas sector will grow in Africa - strong growth, rising demand and limited competition for deals are driving increased interest in Africa.

With US$971.4bn of PE dry powder from June 2016 still to be deployed, EY’s survey, Capitalizing on opportunities: Private equity investment in oil and gas, reveals that PE firms are looking at the oil & gas sector in Africa with renewed interest.

Investors are being drawn by the promise of new infrastructure initiatives across the continent, opening up new trade routes and enhancing regional integration, such as rail and port developments in Mozambique and Angola, as well as stronger regulatory systems in many countries such as Kenya and Ethiopia.

Fact: In the 2014 South African election, the voting station with the most votes collected was not in South Africa itself. It was in London (the South African High Commission).

Mara merger to boost Delta Africa

  • DELTA Africa will become the largest pan-African property fund on the JSE, with more than R6.5bn (US$464m) worth of assets if its planned merger with Mara Diversified Property Holdings goes ahead
  • Mara, which is owned by The Pivotal Fund, a JSE-listed developer, will inject a Kenyan retail and Nigerian office development into Delta Africa in a R1bn (US$71m) deal
  • Pivotal had initially planned to list Mara Diversified Property Holdings separately on the JSE before deciding to opt for the merger with Delta Africa
  • Delta Africa will retain its listings on the JSE and Stock Exchange of Mauritius, but will be renamed Mara Delta

Germany’s DEG makes additional investment in ZEP-RE

  • DEG, the German investment and development corporation, has increased its stake in ZEP-RE, an East-African reinsurance company, to 14.93% after investing an additional US$14.63m
  • ZEP-RE is a regional organization charged with the task of promoting trade, development and integration within the COMESA region through trade of insurance and reinsurance business
  • The company has been in operation since 1993 and is headquartered in Nairobi, Kenya

Foreign investors pump $10 million into top Nairobi Securities Exchange

  • Foreign investors have pumped a net of Sh1.2 billion (US$10 million) into Equity Bank and Safaricom shares in July as they took advantage of falling share prices to increase their holdings in local firms