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: South Africa in the lead again. 

The Rand’s recent gains were compounded this week by municipal election results showing a more competitive political scene, as the ruling ANC lost three “metro” municipalities to opposition coalitions. Despite municipalities having little influence on macro-economic indicators, the capital Pretoria (Tshwane), the economic engine Johannesburg and the Eastern Cape’s manufacturing hub Port Elizabeth (Nelson Mandela Bay) now being DA controlled brings some confidence in the country’s ability to change and reform.

Reaching a 9-month high at the beginning of August, the Rand’s appreciation combined with the Nigerian Naira’s recent devaluation has propelled South Africa back into the position of largest economy in Africa. Low oil prices and continued Brexit uncertainty have so far helped the Rand retain its new-found strength, it remains to be seen what the impact will be on South Africa’s ailing tourism industry.

To round off an encouraging month for South Africa, the country achieved its highest Olympic medal tally since the end of Apartheid, with van Niekerk’s notable 400m record breaking gold.

8 Miles, ACA and DEG back Beloxxi in US$80mln deal

 
  • Africa-focused private equity firms 8 Miles and African Capital Alliance are joining forces with DEG to invest US$80 million in Beloxxi for a significant minority stake
  • The capital will be used by the Nigerian biscuit manufacturer to help it ramp up production and satisfy significant levels of unmet demand in the country as well as the broader West African region

African Rainbow Capital to invest in CMB International

 
  • African Rainbow Capital recently announced that it will invest R120 million (US$9 million) to acquire 29.9% of CMB International, the Mauritius-listed financial services holding company
  • CMB acquired investment banking and advisory firm Bravura in December 2015
  • The capital will be used to support the firm’s acquisition plans and other growth initiatives
  • CMB International was originally incorporated in August 2015, since when it has acquired six financial services businesses
  • The companies provide a range of corporate finance, structured solutions and property investment services to their clients in Southern African and Australia

Zoona has successfully closed a US$15 million

 
  • South African fintech startup Zoona has successfully closed a US$15 million Series B round, raising capital from a number of new as well existing investors
  • The round was led by the IFC, which provided US$7.5 million in funding, while new investors 4Di Capital and Google CFO Patrick Pichette joined Series A backers Quona Capital, Omidyar Network and Lundin Foundation in providing the balance of the round