Atta Financial Update 24.10.2017

Executive summary for the week of 17-Oct-17 to 24-Oct-17 (week 43)
Bitcoin is heading to $10,000, CNBC survey says.

An E-sports betting startup named Unikrn recently raised US$31 million in an Initial Coin Offering (ICO). The group collected 112,720 ‘ethers’ including 56,000 (roughly US$15.6 million) in a presale backed by the well-known investor Mark Cuban. Rahul Sood, chief executive of Unikrn, said that the company had sourced contributions from 112 countries, characterising them as mostly small purchasers.
Intense price swings in cryptocurrencies are luring the highest-volume traders on Wall Street as they hunt for anything with volatility (the VIX has been at historic lows recently).

Proprietary trading firms (which bet their own capital in markets) seem to be heaping into bitcoin, ethereum and other cryptocurrencies better known as an area for small speculators (and a haven for money-laundering).

Bitcoin has been reaching up to US$10,000 a unit in Zimbabwe (compared with a global average of about US$5,200) according to the trading platform in the capital, Harare.

And if you needed further evidence that the digital-currency market is in a frenzy: how about the fact that only about one out of 10 tokens issued in Initial Coin Offerings is in use following the sales: of the recent 200’ish ICOs, only 20 (such as TenX and Storj) and are actually used in the running of their networks - the rest can only be traded, and are purely speculative instruments.

Fact: There are only 31,000 lines of code needed to facilitate Bitcoin. For context, a simple iPhone app has hundreds of thousands; Google Chrome browser has millions; a modern high-end car may have over 100 million lines of code.

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


Quantum Global exits Savannah Cement

  • Quantum Global Alternative Investment Management announced the completion of the sale of its stake in Savannah Cement
  • Quantum had originally backed the cement company in 2015 via its US$1.1 billion Infrastructure Fund
  • Terms of the deal were not disclosed



Old Mutual to acquire Faircape Life

  • Old Mutual Alternative Investments is taking a 50% stake in Faircape Life Right Holdings for an undisclosed sum
  • Old Mutual’s Retirement Accommodation Fund is completing the deal - a R2 billion (US$146m) investment vehicle launched 2015
  • Faircape Life Right Holdings owns and operates six luxury lifestyle villages with 976 residential units with associated healthcare facilities



ENGIE has acquired Fenix International

  • ENGIE has acquired Fenix International, a venture-backed renewable energy company with offices in East Africa and Silicon Valley
  • The deal makes Fenix the first solar home system provider to link with a major energy provider
  • The company, which employs 350 people, operates predominantly in Uganda and has recently expanded into the Zambian market

East African economic news (EAC)


AgDevCo to back Uzima Chicken with US$3 million of debt

  • The capital will be used to expand the company’s capacity to produce between 8 million to 10 million birds per year
  • Uzima supplies day old chicks and feed to a network of smallholder farmers
  • Uzima's vision is to achieve one chicken per family per year by 2020 and one chicken per person per year by 2025 in this region of more than 75M people

Southern African economic news (SADC)
AO, BW, LS, MW, MZ, SZ, ZM, ZW, [-TZ]


Public Investment Corporation to takeover Daybreak Farms

  • The South African Public Investment Corporation (PIC) - the manager of South Africa’s Government Employees Pension Fund - has received South Africa’s Competition Commission approval to take over troubled poultry producer, Daybreak Farms