Atta Africa Financial Update

Executive summary: The African Development Bank plans to invest US$12 billion in Africa’s energy sector.

In a visit to South Africa last week, President of the African Development Bank, Akinwumi Adesina, argued that many countries are using nuclear energy and that there is no reason why South Africa should not be one of them. Adesina's trip was to the country was partly to view the progress that has been made on the Medupi Power Plant (a project the bank has backed to the tune of US$1.6 billion), which is part of the US$3.6 billion it has invested in South African electricity utility, Eskom.

Adesina says the African Development Bank will invest a further US$12 billion into Africa’s energy sector over the next five years - the African Development Bank has set out five priorities to help Africa advance in its development, the most important one being to light up and power Africa.

The other priorities include feeding Africa (through agriculture), integrating the continent, industrialising, and improving the quality of life of its people.

Fact: Madagascar was a popular resting place for European pirates and traders between the late 1700s and early 1800s, and was rumored to be the site of the independent pirate nation of Libertalia- they called themselves Liberi, making their own system of government and law - an anarchist pirate utopia.

Afreximbank unveils strategy for US$250 billion intra-African trade boost

  • A new strategy aimed at driving trade and industrialisation across Africa by at least 50 per cent in the next five years has been announced by the African Export-Import Bank
  • The Afreximbank Intra-African Trade Strategy, approved by the Board of Directors at its quarterly meeting in Johannesburg on Saturday, will see the Bank work with partners to ramp up trade among African countries to US$250 billion from its current level of about US$170 billion by 2021
  • According to a statement by the bank, the strategy will involve expanding existing trading activities within Africa’s regional economic communities, integrating informal trade into formal frameworks, reducing trade barriers and minimizing the foreign exchange costs of intra-African trade

Jamii Bora Bank raises Sh1.2bn (US$11.8m) through private equity investment

  • The two equity funds include Equator Capital Partners (as ShoreCap II) and the Progression Eastern African Microfinance Equity Fund
  • ShoreCap is a private equity fund focused on small business banks and microfinance institutions with this investment marking fund’s 5th investment in Africa
  • Progression Capital is a fund incorporated in Mauritius, making equity investments in East and Southern African financial institutions and financial technology companies engaged in financial inclusion deepening
  • Jamii Bora Bank is the sixth partner institution in their current fund’s portfolio which spreads across Kenya, Tanzania, Uganda, Rwanda and Zimbabwe among others
  • Jamii Bora Bank has a customer base of over 400,000, served by 26 branches located across the country

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