PE On Rise: Top Private Equity Deals in Africa In 2020

There has been a constant increase in private equity investments in Africa over the past few years. Ten African growth stage companies raised USD 100 Mn or more in 2020. WeeTracker partnered with AfriCo, a business intelligence platform that provides information on private & public companies in Africa, to get the top 10 PE deals from their deals database for Africa.

Here’s a list of top 10 Private equity deals in Africa:

Unitel

Investment disclosed: USD 1 Billion
Investor: Sonangol
Exiting Entity: Oi SA

Angola’s state-owned oil company Sonangol acquired 25% stake in Unitel for USD 1 Billion from Brazilian telecommunications company Oi SA. Unitel, a private telecommunications company in Angola, was established as a joint stock company in 2001. After the acquisition of 25% stake, Sonangol became the majority shareholder in Unitel with Geni Holding and Vidatel as minority shareholders.

Tullow Oil PLC

Investment disclosed: USD 575 Mn
Investor: Total

French oil major Total acquired a 33.34% stake in Tullow Oil Plc for USD 575 Mn paid in two parts: USD 500 Mn on completion of the sale of assets and USD 75 Mn on receipt of the final investment decision. Tullow Oil Plc is a British multinational oil and gas exploration company, primarily listed on the London Stock Exchange but focused on Africa and South America.

Eranove

Investment disclosed: USD 303 Mn
Investors: International Finance Corporation (IFC), State of Côte d’Ivoire

Eranove signed a financial agreement of USD 303 Mn with International Finance Corporation (IFC) and the State of Côte d’Ivoire to establish a 390W combined cycle power plant (owned by Eranove subsidiary Atinkou) in Côte d’Ivoire. Eranove is a French company involved in the management of public services and the production of electricity and drinking water in Africa. 

Free Senegal

Investment disclosed: USD 160 Mn
Investor: Helios Towers

Helios Investment Partners portfolio firm Helios Towers invested USD 160 Mn cash to acquire the passive infrastructure assets of Free Senegal, the second largest mobile operator in Senegal. There will be also be additional investments of USD 82 Mn over the next 5 years. Other investors in Free Senegal include NJJ, Teyliom Group and Axian Group. As a result of this investment, Helios Towers will be the largest independent tower infrastructure provider in Senegal.

Humania

Investment disclosed: USD 125 Mn
Lead investor: International Finance Corporation (IFC), Finnish Fund Industrial Cooperation, OPEC Fund for International Development, European Bank for Reconstruction and Development (EBRD)

Healthcare firm Humania received Islamic financing package of USD 125 Mn led by World Bank Group member International Finance Corporation (IFC) which has invested USD 35 Mn Islamic facility. Other investors include IFC managed Co-lending portfolio program, Finnish Fund Industrial Cooperation, OPEC Fund for International Development, European Bank for Reconstruction and Development. Humania operates across the Middle East and North Africa (MENA) region and other emerging markets.

Humania

Investment disclosed: USD 108.5 Mn
Investors: International Finance Corporation (IFC), IFU, Proparco (Lead investor: IFC)

IFC, along with investors IFU (the Danish Investment Fund for developing countries) and Proparco invested USD 108.5 Mn in Humania as an equity financing package to improve medical care across Egypt and Morocco. This is the second major financing that Humania has received in 2020. Along with the investment discussed above, Humania has received a total investment of USD 233.5 Mn to improve medical care in Egypt and Morocco.

Zenith Bank

Investment disclosed: USD 100 Mn
Investor: International Finance Corporation (IFC)

World Bank Group member IFC invested USD 100 Mn as debt in Nigerian-based Zenith Bank. Zenith Bank is Nigeria’s largest bank by equity and assets and is the sixth largest bank in Africa. This loan is IFC’s first investment in Africa as part of its COVID-19 fast-track financing support package.

QNB Alahli

Investment disclosed: USD 100 Mn
Investor: European Bank for Reconstruction and Development (EBRD)

Egyptian Bank QNB Alahli, a member of the QNB Group, received a senior loan of US$100 Mn from the European Bank for Reconstruction and Development (EBRD) to improve its support for local enterprises. Founded in 1978, QNB Alahli operates within the banking sector and has subsidiaries in Egypt. The loan provided by EBRD is part of EBRD’s coronavirus solidarity package set up to meet the short-term financing needs of existing clients that may have arose due to the pandemic.

Commercial International Bank (CIB)

Investment disclosed: USD 100 Mn
Investor: International Finance Corporation (IFC)

World Bank Group member International Finance Corporation (IFC) invested US$100 Mn as debt in Egyptian bank Commercial International Bank (CIB). Founded in 1975, CIB is the largest private sector bank in Egypt and is listed on the London Stock Exchange. IFC has provided this loan to help CIB support clients whose cash flows have been affected by the pandemic.

MetroFibre Networx

Investment disclosed: USD 97.1 Mn
Investor: African Infrastructure Investment Managers (AIIM) (Lead Investor: AIIM)

African Infrastructure Investment Managers (AIIM) acquired a minority equity stake in MetroFibre Networx for USD 63.4 Mn through its newly incorporated Digital Infrastructure Investment Holdings platform. This is part of the USD 97.1 Mn funding raised by MetroFibre Networx led by AIIM and existing shareholder foreign investment vehicle STOA. Founded in 2010, MetroFibre Networx is a growing bandwidth and internet service provider in South Africa.