Atta Africa Financial Update

Executive summary: Nigeria to drive West Africa’s green energy bond.

Nigeria has accepted to lead West African countries in their plan to implement the Paris Climate Change Agreement and subsequently access the green bonds attached to the agreement.

Green bonds are standard bonds with a bonus feature - they were created to fund projects that have positive environmental and/or climate benefits. According to reports, the green bond market which took off in recent years with US$42 billion issued in 2015, has continued to grow with issuance in 2016 hitting over US$50 billion by September.

These types of bonds are similar in principle to a railway bond of the 19th century or the war bonds of the early 20th century - they allow institutional capital - pension, government, insurance and sovereign wealth funds - to invest in areas seen as politically important to their stakeholders that have the same credit risk and returns profile as standards bonds. They also provide a means for governments to direct funding to climate change mitigation.

Several African countries and entities (particular South Africa) have issued such bonds.

Fact: Atoms are 99.9999999999999 per cent empty space - all the matter that makes up the human race could fit in a fifth of a sugar cube

Tritech Media invests in GoMetro

  • GoMetro is a technology company focused on creating public transport and mobile ticketing apps
  • It was seeded with R5 million (US$395k) by AngelHub Ventures and 4 Decades Capital in early to mid 2014
  • Tritech Media has acquired a 20% stake at an undisclosed valuation
  • GoMetro is eyeing expansion opportunities in other emerging countries, with Nairobi, Kenya’s capital city, currently being mapped

African Development Bank is committing US$20 million to the Rx Healthcare Fund

  • Rx Healthcare is an Africa-focused private equity investment vehicle which will target growth capital opportunities in diagnostic, hospital and pharmaceutical companies across the continent
  • The fund, which is looking to raise US$200 million in total, will be managed by EFG Hermes’ private equity investment team
  • Initially backing businesses in Egypt, Tunisia and Morocco, it’s expected to expand its investment region to include Ethiopia, Kenya, Nigeria and Sudan, bringing capital and technology transfer to these under-served regions

Stockdale Street backs new hedge fund startup Senqu Capital

  • Stockdale Street, which manages the Oppenheimer family’s private-equity interests, is investing 100 million rand (US$7 million) in the venture, known as Senqu Capital
  • The new hedge fund to be run by ex-Capricorn Capital Group money managers Andrew Crawford and Stephen Carew
  • South Africa’s hedge-funds industry has more than doubled in size over the past five years, with assets amounting to 69 billion rand (US$ 5bn) at the end of June
  • The duo left Capricorn in August