Atta Financial Update

Executive summary for the week of 14-Feb-17 to 21-Feb-17 (week 8)
Djibouti - the pene-exclave superpower paradise.

Anyone familiar with the board game 'Risk' will understand the importance of foothold. The quiet stability of Djibouti within the volatile Horn of Africa has made the country of just 875,000 people a hub for the world’s superpowers. Camp Lemmonier, America’s only permanent military base in Africa, hosts 4,500 troops and contractors who conduct missions against al-Qaeda in Yemen and al-Shabab in Somalia.

Djibouti also hosts France’s largest military presence abroad; Japan’s only foreign base anywhere; Spanish and German soldiers from the EU’s anti-piracy force; and China's first overseas base. The Saudis, Indians and Russian are queuing to be involved.

The tiny desert state wants to be more than a superpowers’ playground, though; it has ambitions to become a Dubai or Singapore at the gateway of the Red Sea and Indian Ocean - Djibouti has nothing, save for location.

Fact: Most of Steve Jobs' wealth was from his shares in Disney, not Apple

African Private Equity News (PE)
African focused private equity funds

Nafaso in a management buy-out of Injaro's stake

  • Injaro Investments has announced that it sold its 30% stake in Nafaso to the company’s management
  • Injaro first backed the Burkina Faso-based seed producer in 2013 - since then both the company’s revenues and production capacity have tripled
  • The investment was made from Injaro’s US$49 million agricultural impact fund - terms of the deal were not disclosed

TLG Capital to back BAJ Stations

  • TLG Capital is backing BAJ Stations with US$5 million in debt via its credit opportunities fund - the deal is the seventh investment for their open-ended credit opportunities fund
  • BAJ, which has been built up by CEO Norman Batuma, who was originally a Shell franchisee until he acquired Shell’s Uganda business in 2002
  • he debt will be used to expand BAJ’s network across the country

Pointbreak to back Khomas Solar

  • Stimulus, the private equity vehicle managed by Namibian investment management firm Pointbreak, is backing Khomas Solar to the tune of US$35 million for a $67.6% stake
  • The capital is will be used to take advantage of the opportunities in the sector that are being driven by the need for corporations to reduce the size of their carbon footprints

IFC to invest in Caisse Régionale de Refinancement Hypothécaire

  • The IFC is investing US$2 million in equity into Caisse Régionale de Refinancement Hypothécaire
  • Caisse Régionale is a West African Economic and Monetary Union’s regional mortgage refinancing company with ambitions to bridge the housing deficit that exists in West Africa

East African economic news (EAC)

I&M Holdings completes Giro Commercial Bank acquisition

  • I&M Holdings has completed the merger of Giro Commercial Bank Limited into I&M Bank Limited, which is IMHL’s banking flagship subsidiary
  • I&M and Giro entered into an agreement in September 2015 for I&M Bank Limited to acquire 100% of the issued share capital in Giro Bank, and for the merger of Giro Bank’s banking assets and liabilities with that of I&M Bank

40MW solar and storage power plant earmarked for Kenya

  • A Nairobi-based company is set to construct Kenya’s first large-scale solar energy storage battery to be connected to the national power grid
  • The solar park is estimated will cost Sh7.2 billion (US$70 million)
  • The back-up batteries are meant to ensure reliable supply of electricity to the grid even during the absence of sunlight
  • Kenya’s total installed power capacity stands at about 2,400 megawatts, with solar power accounting for less than one per cent