Business Daily

13 Apr 2022

AfricInvest, a leading investment platform in Africa, has a acquired a 36% stake in AutoXpress, the largest importer, distributor and retailer of tyres, auto parts and accessories operating in Kenya, Rwanda, Tanzania and Uganda. The investment has been made in partnership with IFC, a member of the World Bank Group. AutoXpress offers its customers an extensive range of automotive parts and services through a well established network of 50+ outlets across Kenya, Tanzania, Rwanda and Uganda. Founded in 1958, the company represents some of the best-known global brands in the automotive sector.

It has recently expanded its longstanding range of products and services, introducing car servicing and brakes replacement, becoming the leading automotive aftermarket player in the region. Through its investment, AfricInvest, working together with the company, is aiming to strengthen AutoXpress’ pan-regional business through a strategy to enter new markets, leverage technology, and further improve access to its services. AfricInvest and IFC will be following on the heels of a successful investment in AutoXpress by Actis, a leading global private equity group, which saw the company more than double its branches to 56, increase its market presence from two to four countries, and grow its revenues from retail channels.

Sandeep Shah, Managing Director of AutoXpress commented, “We look forward to this new partnership. We expect to draw from the strong investment expertise of AfricInvest on the continent, and similarly the strong global experience of IFC, which together should take AutoXpress to the next level.”

George Odo, AfricInvest’s Managing Director for East and Southern Africa remarked, “We have seen rapid adoption of AutoXpress and their platform, growing to four regional markets and 56 branches. Consumers have shown a increasing willingness to connect online, making the sales process easier. Our investment into this scalable business supports our vision of further growing regional companies and creating omni-channel experiences for consumers, resulting in increased access to goods and services. AutoXpress’ strategy to expand into new markets, new services and new technology aligns perfectly with our strengths in supporting, accelerating and delivering additional value to investee companies.”

AfricInvest has previously realized several investments and exits in the region. Some of the investments include UAP Insurance Group, Family Bank Kenya, I&M Bank Rwanda, Prime Bank, Britam Holdings Group, Silafrica Plastics & Packaging International, Abacus Pharmaceuticals & Kiboko FMCG and Brookhouse Schools amongst others.

19 Apr 2022

Standard Bank Group is proud to announce its funding into Tana Africa Capital II (“Tana Africa Capital”), an investment company which aims to build African companies through growth capital, operational and strategic support. Tana Africa Capital has a portfolio spanning the Education, agribusiness, FMCG, retail and healthcare sectors with operations in more than 20 countries across north and sub-Saharan Africa.

The Standard Bank Group has entered into a funding agreement with Tana Africa Capital to provide a US$22.5 million fund term loan, in support of their growth ambitions in Africa.

Over the last decade, Tana Africa Capital has established its role as a strategic capital allocator on the African continent. The fund believes in implementing a long-term partnership approach, which includes providing industry expertise and access to its extensive networks to facilitate tangible growth for its investee companies.

The facility will support the Tana Africa Capital fund base, enabling the fund to access key target investments in high-growth sectors and to pursue future investments that will continue to grow and create opportunities for economic and financial sustainability on the African continent.

This fund loan is an important step as we seek to build great businesses across the African continent, create quality employment opportunities and other social benefits in the countries in which we operate and deliver returns for our shareholders. We thank Standard Bank for their ongoing support. – Mark Tindall, CEO and Managing Director, Tana Africa

Standard Bank is committed to driving growth across Africa. Through this valued partnership with Tana Africa Capital, Standard Bank’s Equity Finance team – a team with expertise across sectors in Africa – has been able to execute on its mandate on supporting our clients with funding their African ambitions.

23 Mar 2022

Injaro Investment Advisors Limited Launches Injaro Ghana Venture Capital Fund, with a first close set for Q2 2022
Injaro Investment Advisors Limited, a Ghanaian growth capital investor, is delighted to announce the launch of the Injaro Ghana Venture Capital Fund (IGVCF), its inaugural Ghana cedi denominated fund. The GHS 150M fund launches with commitments from several private pension schemes including the Petra Advantage Pension Scheme and Petra Opportunity Pension Scheme; Ghana Education Service Occupational Pension Scheme; Axis Pension Trust, Enterprise Tier 2 Occupational Pension Scheme and other clients of Stanbic Investment Management Services.

The launching of IGVCF represents a historic milestone in the evolution of Ghana’s capital markets. “It is the first private equity fund to be anchored primarily by local private pension funds. The fund is also denominated in local currency (GHS), thus eliminating the FX pressures typically experienced by funds denominated in hard currency,” noted Yaw Sampong, Executive Director at Injaro. This milestone has been facilitated by progressive improvements in the pensions regulatory landscape, which commenced with the implementation of the 3-tier pension system in 2010 and the creation of the National Pensions Regulatory Authority (NPRA). The most recent amendments to the NPRA guidelines set a minimum target for variable income investments. This requires pension schemes to diversify their portfolios to incorporate this asset class which includes private equity. This presents local private equity fund managers the opportunity to tap into some GHS22B (2020) of capital managed by private pension schemes.

IGVCF will invest in high potential businesses across sectors that can grow profitably as well as contribute to job creation and sustained economic growth. The Fund will make equity, quasi equity or debt investments in SMEs in the Food & Agribusiness, Education, Inclusive Financial Services, Healthcare, Manufacturing and Industrial Services sectors mainly in Ghana (80%), and Cote d’Ivoire (up to 20%).

Established in 2009, Injaro’s experience includes managing the US$ 49M impact investment fund, Injaro Agricultural Capital Holding (IACHL), launched in April 2012. IACHL is focused on SME investments across the agricultural value chain in West Africa, with investors including CDC, FMO, PROPARCO, the Adolf H. Lundin Charitable Foundation, the Soros Economic Development Fund (SEDF), the Alliance for a Green Revolution in Africa (AGRA) and family offices based in North America and Europe. IACHL’s investment portfolio has generated US$ 124M in revenue and benefitted more than 3.78 million persons, mainly comprising smallholder farmers, low-income persons, and their families.

Through IGVCF, Injaro will implement an investment strategy that is distinct from its first fund in sector focus, but complementary to Injaro’s objective of building sustainable African businesses. With ticket sizes ranging from GHS 8M – 20M, the fund seeks to partner profitable businesses within growth sectors. IGVCF will prioritize opportunities that are best placed to leverage new capital to create value and offer local institutional investors the benefits of the private equity asset class – better returns and diversification.

Speaking at the launch of the new fund, Jerry Parkes, Managing Director at Injaro said: “Our vision for the fund goes beyond supporting businesses to drive economic growth. We also hope, through our work with IGVCF, to contribute to a more vibrant capital market in Ghana. We consider private equity investments to be at the start of the investment conveyor belt that ultimately creates a variety of securitization opportunities for the market. IGVCF, as a private equity fund specifically targets the most promising and fastest growing businesses thus providing a well-managed exposure to these growth opportunities. The opportunity is compelling; IGVCF represents more than just a private equity fund. Investing in this fund helps to build Ghana’s economy, contributes to building our capital markets and offers interesting returns for investors. Join us in making history and building a more prosperous Ghana for future generations.”

About IGVCF

The Injaro Ghana Venture Capital Fund (IGVCF) is a generalist private equity fund with Ghanaian pension funds as anchor investors. IGVCF is a 10-year fund with a target fund size of GHS 150M. The fund will deploy GHS 8M – 20M per investment into sectors such as food and agribusiness, education, healthcare, inclusive financial services, light manufacturing, and industrial services. Beneficiary companies will need to have a proven business model and track record (at least three years trading history), have an established team or be willing to set up one, be ESG compliant and be willing to work with Injaro to develop an exit plan.

About Injaro Investment Advisors Limited

Injaro Investment Advisors Limited is an investment advisory firm licensed by the Ghana Securities & Exchange Commission and is part of an international fund management group that manages investments across Sub-Saharan Africa. Injaro has expertise in the areas of private capital, corporate finance advisory, asset management, management consulting and project management.

23 Mar 2022

Old Mutual Alternative Investments (OMAI) has concluded a ZAR71 million debt and equity investment to develop two new independent schools in East London, with the aim of significantly enhancing access to quality education. The investment takes place through OMAI’s Education Investment Impact Fund of South Africa (EduFund) and is in partnership with well-known and experienced local education operator, Piyuse Thomas.

The new schools will have capacity for 1,120 learners and will be developed over two phases, with the first phase commencing in March for completion in time for the 2023 learner intake. The second phase is due to start in 2024 and is expected to be completed for the 2025 intake.

"We are incredibly pleased to be partnering with a successful local education operator in this venture, as a deep understanding of the local market is critical to its long-term success, impact and sustainability. Our partner, Mr Piyuse Thomas, has an excellent education track record and we are delighted to be working with him to help improve access to quality education in the under-served East London market,” says Kelly Joshua, Head of Education at OMAI.

Mr Thomas has been operating his existing high school (the East London Science College) since 2000 and has achieved notable academic success, with a 100% matric pass rate and 73% bachelors’ pass rate in 2021. This compares with the national averages of 76% and 36% respectively.

“When we first started out, all those years ago, it was very clear to us that the local community needed better access to quality education. While it is apparent how much we’ve accomplished since then, substantial unmet demand remains,” says Thomas.

The total cost to develop the two new schools – to be collectively known as St Joseph’s College – will amount to ZAR90 million and will be funded through a combination of debt and equity from EduFund and equity from the Thomas family. The Thomas family are a local, 100% Black-owned, education operator and will own 60% of the special purpose vehicle that will develop, own, and operate the two new schools, alongside EduFund’s 40% stake.

“This investment addresses the specific needs of the middle-income market segment, where a significant gap to receiving quality education exists. We are incredibly pleased to have secured the funding and investment in partnership with EduFund, without which we could not have realized our growth ambitions,” says Thomas.

EduFund has a proud history of financing and investing in the education sector in South Africa across sub-sectors and market segments, with the objective of earning an attractive risk-adjusted return for its investors and making a substantive positive impact in the sector.

“We consider it a privilege to work with mission-driven entrepreneurs to help them scale up in a way that makes a positive impact in the independent education sector. The Thomas family’s deep relationships and understanding of the local market will be invaluable as we help develop it for the benefit of more communities, families and young leaders of tomorrow,” concludes Joshua.

04 Mar 2022
Aruwa Capital Management Invests in Koolboks A technology-enabled renewable energy refrigeration company for off-grid areas

Aruwa Capital Management (“Aruwa”), an early-stage growth equity and gender lens fund investing in Nigeria and Ghana is pleased to announce an investment into Koolboks (the “Company”), a technology-enabled renewable energy refrigeration company that provides cost-effective cooling to business owners, particularly women, in off-grid areas in Nigeria and globally. The Company makes eco-friendly refrigeration affordable and accessible to everyone.

Established in 2018, the Company’s founders created a product to provide affordable and energy efficient refrigerators to customers. This solution is critical for the African continent where refrigeration penetration rate is currently only at 17% and 770 million people are without access to electricity. In Africa, there are significant amounts of spoilage, particularly in the food and pharmaceutical industries, due to the grid instability and lack of power. Koolboks has solved this critical problem by combining the power of two natural forces, the sun and water, creating a refrigerator that can store energy for up to four days in the absence of power from the grid or generators. Through its proprietary ice-battery design and technology, cooling is retained in the absence of power, helping to reduce wastage of food and vaccines in under-served off-grid regions, helping SMEs in off grid areas to maximise revenue and profits. The Company’s products are eco-friendly and protect the environment by using natural rather than synthetic refrigerants that are harmful to the environment.

In addition, through its pay-as-you-go (PAYGO) and remote monitoring IoT system, the Company provides innovative financing to its end-users through a lease-to-own model, allowing its customers to pay on a monthly basis in Nigeria, making the product more affordable for the SMEs being served in weak grid and off grid areas. Outside of Nigeria, the Company sells directly to last mile distributors of solar systems and appliances. Furthermore, through this technology, the Company is also able to create a portfolio of products that are applicable across the agriculture, FMCG, healthcare and hospitality sector. The Company has successfully set up distribution channels across more than fourteen countries globally since its launch validating the widespread demand for its products.

Deborah Gael, COO & Co-Founder of Koolboks, said: “We are excited to partner with Aruwa Capital on our journey and welcome them as one of our first institutional equity investors. Since our introduction to the Aruwa team, they have been instrumental in providing strategic guidance and making necessary introductions locally to facilitate our growth. In addition to the capital being provided which would enable us fulfil pent up orders, we are also very excited to benefit from the strategic nature of this partnership.”

Ayoola Dominic, CEO & Co-founder of Koolboks, added: “We are happy to be closely aligned with Aruwa in terms of their gender lens investment strategy. By creating a product for micro SMEs typically owned women and making it affordable, we are able to enable SMEs in the informal sector to reduce their cost burden as well as increase their revenue potential, which subsequently improves their standard of living. Furthermore, the capital raised will enable us unlock the next phase of growth and scale globally over the next few years.”

Adesuwa Okunbo Rhodes, Founder & Managing Partner of Aruwa Capital, said: “We are thrilled to announce this investment into Koolboks, it aligns with so many of our values in terms of our gender lens, ESG and impact objectives. The Company has successfully launched and proven the demand for its proprietary technology and product, in a large, underpenetrated and growing market. As part of our due diligence process, we received first-hand testimonials from the Company’s customers, majority of whom are women, on the immense value that the Koolboks product brings to their lives and business, from higher revenue due to reduced spoilage, to lower diesel costs, all driven by the Company’s unique and proprietary technology. In line with Aruwa’s gender lens investing strategy, Koolboks is co- founded by a woman, has a 67% female representation in its management team and 73% of its B2C customer base are women. We are very confident in the Company’s ability to continue to scale across Africa and globally to continue to contribute to women’s economic empowerment, and we are thrilled to be working with the team for the exciting journey ahead.”

About Koolboks

Koolboks is a technology-enabled renewable energy refrigeration company that provides cost-effective cooling services to business owners, in off-grid areas in Nigeria and globally. The Koolboks solar-powered refrigeration systems, equipped with pay-as-you-go technology and offered through a lease-to-own business model, enable eco-friendly and accessible refrigeration to everyone who needs it. For more information visit https://www.koolboks.com/