Business Daily

24 Feb 2022

$50m of equity from the UK’s development finance institution, CDC Group, soon to be renamed British International Investment
$20m of equity from the Norwegian investment fund for developing countries, Norfund; and
$20m of senior debt from U.S. International Development Finance Corporation (DFC), the United States Government’s DFI
London, 24th February 2022 – AgDevCo, the specialist investor in early-stage African agribusinesses, today announced a $90m package of new funding from the CDC Group, Norfund and DFC which will allow AgDevCo to continue to grow its investment activities in agriculture across Sub-Saharan Africa. This is in addition to the announcement of supplementary funding of up to $5.4m from CDC, Norfund and the UK’s Foreign, Commonwealth and Development Office (FCDO) for AgDevCo’s integrated technical assistance facility.

Established in 2009, AgDevCo’s vision is a thriving commercial African agriculture sector that benefits people, economies, and the environment. The organisation contributes to this goal by providing investment capital and technical assistance to grow sustainable and impactful businesses across the agricultural value chain. In doing so, it aims to promote resilience, gender equality and the production of better-quality, more nutritious food.

This new funding builds on the original endowment funding provided by the UK government which helped establish AgDevCo over the past decade. This endowment has provided capital to agribusinesses that have directly created or sustained more than 15,000 jobs and to work with 750,000 smallholder farmers to help increase their income and improve their resilience to climate change. It has also allowed AgDevCo to build a capability and track record to the point where it can secure external investment capital.

In welcoming the investment, Keith Palmer, AgDevCo’s founder and Chairman, said: “Securing investment from CDC, Norfund and DFC is a major milestone in AgDevCo’s history. It is a strong endorsement of AgDevCo’s team and our strategy. We are excited that our vision is shared by our new funders, who recognise the important contribution that AgDevCo investments can make to productivity, sustainability, and inclusivity in Africa. Their funding marks the beginning of a partnership in which AgDevCo will use its sector specialism, drawing on our new funders’ networks and resources, to increase the number of impactful investments in African agriculture.”

UK Minister for Africa, Vicky Ford, said: “I am proud to see how AgDevCo’s investing has boosted sustainable agriculture across Sub-Saharan Africa over the past 10 years, including deepening impact on smallholder farmers and SMEs. This new investment will bring continued growth, by enabling agribusiness SMEs to expand, improve farmer incomes, create new jobs and strengthen climate resilience across Africa.

Tenbite Ermias, CDC’s Managing Director for Africa, said: “This investment reinforces our long-term commitment to investing in key sectors in Africa including agriculture, which is critical for creating jobs, promoting gender equality and supporting people to build a better life for themselves and their families. Furthermore, it reflects our continued focus on climate finance which is central to our new strategy over the next five-year period, to support emerging economies that are most vulnerable to the impacts of the climate emergency.”

Ellen Cathrine Rasmussen, Executive Vice President of Scalable Enterprises in Norfund, said: “Norfund is very pleased to partner with AgDevCo to deliver on our joint mission: to create jobs and improve lives by investing in businesses that drive sustainable development. A thriving commercial African agriculture sector is vital for economic growth and job creation. More than half of Sub-Saharan Africa’s population work in agriculture, yet Africa does not produce enough food to feed the continent. The investment in AgDevCo will create jobs, increase food production, improve climate change resilience, and promote gender equality. The AgDevCo team’s skills, networks and achievements are impressive – and we look forward to working with them."

Algene Sajery, DFC’s Vice President of External Affairs and Head of Global Gender Equity Initiatives, said: “DFC is thrilled to support AgDevCo with a $20 million loan to bring additional capital to smallholder farmers and agricultural businesses in Africa, promoting food security for lower-income communities across the continent. DFC’s loan, alongside financing from our partner DFIs, will enable AgDevCo to link more farmers to markets and create jobs for underserved populations, with a focus on women farmers.”

About AgDevCo

1. AgDevCo is a specialist investor in early-stage African agribusinesses, structured as a permanent capital vehicle. We are owned by a not-for-profit company limited by guarantee that exists to protect and promote our mission.

2. AgDevCo’s investments typically range between US$ 2 million and US$ 10 million. We invest across the agricultural value chain, from inputs to logistics, and in all sub-Saharan African countries except those with upper middle-income status.

3. AgDevCo works in a variety of sectors and crops, including high-value export crops like avocados and macadamias; nutritious food industries for domestic markets and affordable meat protein like poultry and fisheries. Portfolio companies are involved throughout the food sector from primary production, through processing to retail.

4. In addition to provision of capital, AgDevCo helps its investees grow into profitable businesses by providing specialist technical support and access to technical assistance funds (link to TAF brochure)

5. Since starting in 2010, AgDevCo has invested in 80 agribusiness across sub-Saharan Africa. Our current investment portfolio is comprised of over 40 companies (including a number of small, legacy investments) with a total value of c$150m. These companies are spread across nine different countries on the continent (Ghana, Cote D’Ivoire, Kenya, Tanzania, Uganda, Rwanda, Zambia, Malawi and Mozambique).

6. AgDevCo has been selected by the 2X Flagship Funds Committee as a 2X pioneer flagship fund. The 2X Challenge is a leading initiative launched by the DFIs of the G7 countries that promote deploying and mobilizing capital to empower women and enhance their economic participation in emerging markets.

About CDC
1. CDC will formally become British International Investment plc on 4 April 2022.

2. British International Investment is a reliable and trusted investment partner to businesses in Africa, parts of Asia and the Caribbean. It will commit between £1.5 and £2 billion per annum between 2022 and 2026 to support the UK government’s Clean Green Initiative and to create productive, sustainable, and inclusive economies in Africa, parts of Asia and the Caribbean.

3. British International Investment plays a key role in the UK government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.

4. Over the next five years, at least 30 per cent of BII’s total new commitments by value will be in climate finance. This will make us one of the world’s largest climate investors in Africa.

5. BII is also a founding member of the 2X challenge which has raised $10bn to empower women’s economic development.

About FCDO
1. The FCDO pursues the UK national interests and projects the UK as a force for good in the world. It promotes the interests of British citizens, safeguards the UK’s security, defends its values, reduces poverty and tackles global challenges with its international partners.

23 Feb 2022

Facility to strengthen FirstBank’s commitment to gender financing with US$30 million targeted to women-owned and led businesses
Partnership will enhance funding to local SMEs to boost growth and promote financial and social inclusion across Nigeria
The facility adds US$100 million to CDC/BII’s contribution to the 2X Challenge
Lagos – 21 February 2022 – CDC Group, the UK Government’s development finance institution, announced today a US$100 million finance facility to First Bank of Nigeria Limited (FirstBank). This new facility will direct funding to women-owned and led businesses as well as to local small and medium-sized enterprises (SMEs) in Nigeria.

The deal will support FirstBank, one of Nigeria’s largest banking groups, to deliver financial solutions that help to address the challenge of limited access to capital faced by underbanked and underserved groups in the country. As part of the new facility, a minimum of US$30 million will be allocated in the form of credit lines to women entrepreneurs. The facility will also support FirstBank’s ‘FirstGem’ gender-focused services offering, which takes steps to promote gender inclusion by improving lending and support to female entrepreneurs.

The new partnership between CDC, which will be renamed British International Investment in April, and FirstBank demonstrates a shared mission to spur sustainable, productive and inclusive growth in Nigeria.

CDC’s commitment will facilitate an expanded offer by FirstBank to its clientele, which will accelerate financial inclusion and increase opportunities for marginalised groups, including an estimated 59 million unbanked Nigerians, to participate in the country’s formal economy. As such, the partnership will capitalise on the FirstBank’s expansive network of over 700 branches and 150,000+ agents, leveraging its market leading expertise to scale financial solutions to underbanked entrepreneurs and populations.

In addition, CDC/BII will support FirstBank with a technical assistance programme which will build on the Bank’s knowledge base of the women-led and women-owned businesses in its portfolio, strengthening the Bank’s technical capabilities and ability to reinforce its commitment to gender-based initiatives. This will enable the Bank to further leverage the facility to provide vital funding to scale business growth across Nigeria’s market – increasing job creation and improving livelihoods throughout the country.

The facility’s target to increase financial inclusion and opportunities for women, qualifies this facility under the 2x Challenge – a commitment by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies. Moreover, the US$100 million commitment aligns with the UN’s Sustainable Development Goal 5 Gender Equality and Goal 8 Decent Work and Economic Growth.

Nick O’Donohoe, Chief Executive of CDC Group, said: "Promoting financial inclusion is a key component for advancing sweeping productive and sustainable growth across both rural and urban areas in Nigeria. This facility will channel CDC’s flexible and long-term capital toward expanding the financial solutions made available to women entrepreneurs, who are often the drivers of small business ideas and services to their communities.

“Our commitment demonstrates a deepening of British partnership with Nigeria’s businesses, as we collaborate to unlock the potential for entrepreneurial success and economic growth across the country.”

Adesola Adeduntan, Managing Director / Chief Executive Officer, FirstBank said: “Beyond the mutual benefits this partnership offers to both organisations, this transaction offers yet, another occasion for FirstBank to contribute immensely, to the United Nation Sustainable Development Goals.

“Enabling financial inclusion for SMEs has been a strategic priority for FirstBank over the last 128 years. Similarly, FirstBank has been at the forefront of financially empowering women-owned and women-led businesses on the continent. This partnership with CDC/BII offers a fantastic opportunity to accelerate the momentum.

“At FirstBank, we remain ever committed to fostering financial inclusion, creating wealth for the underserved, enhancing access to quality education and health care, improving lives and empowering women.”

About CDC/BII
1. CDC will formally become British International Investment plc on 4 April 2022.

2. British International Investment is a reliable and trusted investment partner to businesses in Africa, parts of Asia and the Caribbean. It will commit between £1.5 and £2 billion per annum between 2022 and 2026 to support the UK government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in Africa, parts of Asia and the Caribbean.

3. British International Investment plays a key role in the UK government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.

4. Over the next five years, at least 30 per cent of BII’s total new commitments by value will be in climate finance. This will make us one of the world’s largest climate investors in Africa.

5. BII is also a founding member of the 2X challenge which has raised US$10bn to empower women’s economic development.

6. The company has investments in over 1,000 businesses in emerging economies and total assets of £6.8 billion.

About First Bank of Nigeria
First Bank of Nigeria Limited (FirstBank) is the premier Bank in West Africa and the leading financial inclusion services provider in Nigeria for 128 years.

With over 750 business locations and over 150,000 Banking Agents spread across 99% of the 774 Local Government Areas in Nigeria, FirstBank provides a comprehensive range of retail and corporate financial services to over 30 million customers. The Bank has international presence through its subsidiaries, FBNBank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.

The Bank has promoted digital payment in the country and has issued over 10million cards, the only bank to achieve this milestone in the country. FirstBank’s cashless transaction drive extends to more than 10million people on its USSD Quick Banking service through the nationally renowned *894# Banking code and over 4.5 million people on FirstMobile platform.

Since its establishment in 1894, FirstBank has consistently built relationships with customers focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership. Over the years, the Bank has led the financing of private investment in infrastructure development in the Nigerian economy, and played key roles in the Federal Government’s privatisation and commercialisation schemes. With its global reach, FirstBank provides prospective investors wishing to explore the vast business opportunities that are available in Nigeria, an internationally competitive world-class brand and a credible financial partner.

02 Feb 2022

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (“DEG”), Germany’s development finance institution, has announced a USD 20m commitment to Convergence Partners Digital Infrastructure Fund (CPDIF). The fund manager Convergence Partners has a successful track record of investing across the technology and digital sectors across sub-Saharan Africa and has backed several companies with pioneering business models in their respective fields thus combining returns for investors with meaningful and sustainable market development.

DEG’s funding will provide growth capital to support African businesses in their pursuit to expand and densify the digital infrastructure for Africa’s ongoing digital transformation. This investment in the digital infrastructure ecosystem will be a key enabler to boost entrepreneurship, innovation, skills development and job creation across the continent.

Christof Gross, Vice President at DEG’s infrastructure and energy global equity team said: “We are witnessing a substantial acceleration of Africa’s digital transformation journey. At DEG, we are excited to navigate this development together with Convergence Partners and look forward to our investments, which will foster digital inclusion by increasing access to reliable and affordable digital services of international quality standards for African businesses and consumers.”

21 Mar 2022

Meridiam has just signed the concession contract for the Bus Rapid Transit (BRT) project in Dakar. This project, that Meridiam will implement with its partners Keolis and Fonsis is the first of its kind in Africa[1], and represents a total investment of more than €135 million. It includes the operation and maintenance for 15 years of this new clean public transport network, entirely dedicated to 100% electric buses. It is expected to be operational in the summer of 2023.

This project will create about 1000 direct and local jobs, with a focus on women and young people, of which about one third will be drivers. It is part of the ambitious and global strategy to modernise Dakar’s urban mobility and its transport network by 2025. It is also a concrete project in favour of the energy transition that offers a solution adapted to the challenge of climate change, but also an efficient alternative to the existing diesel bus network. It illustrates Meridiam’s commitment to developing social and sustainable infrastructure, and its concrete contribution to the United Nations Sustainable Development Goals (notably SDG 8 – Decent Work and Economic Growth, SDG 9 – Industry, Innovation and Infrastructure and SDG 11 – Provide Resilient Infrastructure and Develop Sustainable Cities).

The Dakar BRT will provide a sustainable solution:

To passenger transport. Dakar is one of the largest cities in West Africa and the economic and political capital of Senegal. Its population (3.8 million) is expected to grow by about 40% over the next decade.

Road congestion. Travel within the city, particularly by motorised transport, is expected to double in the next 20 years.

The buses will run on batteries charged with 100% renewable electricity and will massively improve air quality in Dakar avoiding the emission of more than 59,000 tonnes of CO2 per year.

Thanks to these electric buses, comfort, safety, regularity and journey times will also be greatly improved. The link between the coastal town of Guédiawaye, north of Dakar, and the city centre during peak hours will be twice as fast, going from over 90 to 45 minutes. Transport costs in the city will be reduced through the implementation of an affordable and intermodal fare policy and social fares for eligible people defined by the State of Senegal. Finally, the inhabitants will have easier and wider access to[2]:

Employment opportunities: 50% of Dakar’s inhabitants will have access to more than 8,000 additional jobs,

Shops, educational institutions or universities, health centres or hospitals. 60% of the population will have access in less than 30 minutes to at least one additional market, 47% to an additional university, 62% to a pharmacy and 25% to an additional hospital.

The BRT in a few figures:
– 121 buses powered 100% with renewable electricity (via batteries) will run every day on 18.3 km dedicated lanes.
– 300,000 people will use this new clean mode of transport every day, serving 14 municipalities and 23 stations.
– 4 different services: 1 omnibus and 3 faster express lanes stopping only at certain stations

18 Mar 2022

Prudential Financial and LeapFrog Investments are backing one of Africa’s leading independent providers of financial advice, retirement, investment, and wealth management services, further deepening their presence and potential to impact people’s lives across the continent

JOHANNESBURG & NEWARK, N.J.–(BUSINESS WIRE)–Prudential Financial, Inc. (Prudential Financial) (NYSE: PRU), in partnership with LeapFrog Investments Group, Ltd. (LeapFrog Investments), announced its intention to acquire a strategic minority interest in Alexander Forbes Group Holdings Limited (JSE: AFH), a leading provider of financial advice, retirement, investment, and holistic wealth management services in South Africa.

The transaction builds upon Prudential Financial’s partnership with LeapFrog Investments to access high-growth financial services markets in Africa and deliver essential financial tools to emerging consumers. Since 2016, Prudential Financial and LeapFrog Investments have invested in high-quality market leaders across the African continent, including Enterprise Group in Ghana and ICEA LION in Kenya.

“We are excited to broaden our presence in Africa and enter South Africa with an investment in Alexander Forbes through our partnership with LeapFrog Investments,” said Pavan Dhamija, Prudential Financial’s regional president (Africa, India, Indonesia, and Business Development). “This transaction underscores Prudential’s continued focus on Africa as a strategically important growth market and our vision to be a global leader in expanding access to investing, insurance, and retirement security. We identified Alexander Forbes as the market leader in South Africa best capable of advancing our vision and strategy.”

Gary Herbert, COO and partner at LeapFrog Investments, stated, “Through our strategic partnership with Prudential, we are backing the exceptional team at Alexander Forbes to continue to provide life-changing access to retirement and investment benefits in Southern Africa. This investment reinforces our commitment to deepening access to financial tools to generate prosperity for consumers in emerging markets.”

“We are delighted to welcome long-term strategic shareholders of the caliber of Prudential Financial and LeapFrog who believe in our vision and support our strategy to achieve it. Their investment is an affirmation of the impact that we make on people’s lives, the quality of our team, and the potential that exists to unlock even greater value for our stakeholders,” said Dawie de Villiers, CEO of Alexander Forbes. “The conviction of our long-term strategic shareholders, including ARC, can provide confidence to the market in the investment case for Alexander Forbes as we accelerate our transformation towards becoming the most impactful provider of financial advice to institutional clients and individual customers. It is an exciting development, and we look forward to leveraging the global insights available through Prudential Financial to enhance our value proposition.”

Under the terms of the transaction, Prudential Financial, with LeapFrog Investments acting as the investment manager, will acquire a minority interest in Alexander Forbes from Mercer.

The transaction is subject to regulatory approvals and other customary closing conditions. LeapFrog’s appointment as investment manager is subject to approval by the Mauritius Financial Services Commission.

Deutsche Bank acted as financial advisor, and Cliffe Dekker Hofmeyr Inc. and ENSafrica in South Africa and Debevoise & Plimpton LLP acted as legal advisors to Prudential Financial and LeapFrog Investments on the transaction. Standard Bank acted as financial advisor, and Bowmans acted as legal advisor to Alexander Forbes on the transaction.

About Prudential
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with more than $1.5 trillion in assets under management as of Dec. 31, 2021, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help to make lives better by creating financial opportunity for more people. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for more than a century. For more information, please visit news.prudential.com.

Prudential Financial is not affiliated in any manner with Prudential plc, an international group incorporated in the United Kingdom or the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

About LeapFrog Investments
LeapFrog invests in exceptional businesses in Africa and Asia, partnering with their leaders to achieve new levels of growth, profitability and impact. Founded in 2007, LeapFrog’s companies now reach 272 million people across 35 countries with healthcare or financial services, providing jobs and livelihoods to 143,000 people. Through consistent delivery on a strategy of Profit with Purpose, LeapFrog has raised over $2 billion from global institutional investors, including $500 million recently committed by Temasek. LeapFrog has been ranked by Fortune as one of the top 5 Companies to Change the World. For more information, please visit leapfroginvest.com.

About Alexander Forbes
Alexander Forbes is a financial services group that impacts people’s lives by delivering insight and advice to individuals, employers and retirement funds. Alexander Forbes is listed on the Johannesburg Stock Exchange and headquartered in Johannesburg, South Africa.

Since its founding in 1935, Alexander Forbes has played an integral role in South Africa’s financial services industry, having built a leading brand synonymous with insight, advice, and impact. The company has leveraged partnerships to provide specialist consulting services across 32 African countries to efficiently serve the holistic advice needs of multinational employers. Alexander Forbes is a recognised leader across multiple lines of business servicing over 4,500 corporates with over 1 million members. Alexander Forbes Investments is the largest multi-manager in South Africa with over R420 billion in assets under administration and management. For more information, please visit alexanderforbes.co.za.