Atta Financial Update

Executive summary for the week of 16-May-17 to 23-May-17 (week 21)
Ethiopia tipped to be top recipient of private equity.

Ethiopia is expected to be the top destination for private equity in eastern Africa, beating Kenya thanks to its friendly business environment and favourable industrial policy.

The country has promoted the development of industrial parks focusing on textiles, leather, agro-processing and pharmaceuticals, as part of its Vision 2025 that seeks to make the country a light manufacturing hub in Africa.

Estimates project private equity inflows into Ethiopia this year at US$4.4 billion compared to East Africa's next highest: Kenya US$1.3 billion (Sh134.2 billion).

An example of the type of investment being made in Ethiopia: the Hawassa Industrial Park. Opening in July 2016, it was designed and built by a Chinese corporation and includes 35 manufacturing facilities and one fabric mill; is it also largely powered by green energy.

The park aims to employ 60,000 people at full capacity and generate export revenue of US$1 billion (Sh103.3 billion) annually.

Nine other industrial parks that are under construction or in the pipeline - namely the Diredawa, Mekelle, Adama and Kombolcha parks that are due to be completed during the 2016/17 fiscal year.

Fact: For 100 years, almost all maps of Africa contained a mountain range that did not exist, called the Mountains of Kong.

African Private Equity News (PE)
African focused private equity funds

Synergy Capital to back Cloud Exchange Limited

  • Synergy Capital has acquired a subsidiary of Dimension Data operating in Nigeria
  • The newly acquired assets, which will be re-branded Cloud Exchange Limited, will provide IT systems integration services to large corporations and government entities across West Africa
  • The details of the transaction were not disclosed


Vostok New Ventures to back CarZar

  • CarZar, the second-hand car online market place backed by Silvertree Capital, has received an additional US$1.5 million in expansion capital from Vostok New Ventures
  • Vostok New Ventures is a NASDAQ Stockholm-listed venture capital group


XSML Capital has announced final close on Africa Rivers Fund

  • XSML Capital announced it has held the final close the Africa Rivers Fund, hitting its target of US$50 million
  • The African Rivers Fund is XSML’s second fund under management, following the Central Africa SME Fund and bringing total assets under management to US$69m

East African economic news (EAC)

Google and partners commit US$100 million to African broadband project CSquared

  • Google is forming a four-way partnership to invest in a wholesale broadband infrastructure project designed to bring fast and reliable internet access to cities across Africa
  • CSquared will be run as an independent company, with its main headquarters in Nairobi, Kenya
  • CSquared’s network is currently only active in Uganda and Ghana, but more countries are planned for the future, with US$100 million worth of cumulative capital commitments in place to support the expansion
  • The company emerged in 2013 following the combination of several of Google’s Project Link initiatives to build high-speed, world-class fibre-optic networks in Africa’s cities, has already laid over 800km of fibre in Kampala and Entebbe and more than 840km of fibre in the Ghanaian cities of Accra, Tema and Kumasi


Zambia plans nuclear energy to tame power deficit

  • The Zambian government has disclosed plans to venture into nuclear energy technology in a bid to branch out the country’s energy sector and end power deficits
  • Zambia currently has a power deficit of over 400 megawatts that results in long hours of load shedding almost on a daily basis
  • The Zambian Government in December last year signed agreements with Russia’s state nuclear agency Rosatom to lay the groundwork to build nuclear power plants in Zambia which it hopes will bring to an end load shedding