Commercial News from Africa

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.

Property deal in Africa. The UK-government backed emerging markets investor has made a US$25 million co-investment in a Kenyan real estate development. The deal is being spearheaded by leading emerging markets investor Actis. The World Bank’s investment arm, the International Finance Corporation, is also providing US$7 million towards the project. The US$250 million Garden City project near Nairobi involves the building of a shopping centre and 76 residential units - Massmart (Walmart-owned) will be the anchor tenant. The site was acquired from Diageo-owned East African Breweries Limited in 2011 and the first stage of construction is expected to be finished by the end of 2014.

JCM Capital starts US$150 million fund for power projects in Africa. Canadian-based private equity firm has launched a targeted fund of up to US$150 million to support PV power plant projects in Sub Saharan Africa (as well as Latin and South America). The firm has previously focused on emerging markets and has funded more than 70 projects in the last five years. Such markets have been difficult to develop due to access to early-phase investment by PV project developers. The company said that the fund had already secured a lead investor and secured commitments of US$15 million.     

Government and World Bank Accord attribute US$75 million to education. The national education system has been given US$75 million as a result of an agreement signed in Luanda between the Angolan government and International Development Agency of the World Bank. The amount will be channelled to the "Learning for All Project", a tool created by the government in order to improve the teachers' competence and assist in the management of schools and assessment of students in primary school. About 500.000 students in 980 primary schools in various parts of the country will benefit from the project, whose implementation timeline covers the period between 2014/2018. Under the same project, at least 24.300 teachers, municipal and provincial staff of the Ministry of Education will have access to training.