Atta Africa Financial Update

Executive summary: South African MPs will vote in secret in a motion of no confidence against President Jacob Zuma shortly, in a surprise move that increases the chances of his removal over allegations of corruption and cronyism.

South African opposition parties have put the ANC under pressure to accept a secret ballot — including taking the matter to the country’s courts — believing it to be the only way ruling-party MPs disillusioned with Mr Zuma will vote against their leader. The ANC controls 249 out of 400 seats in parliament, meaning the opposition would need at least 50 ruling-party MPs to vote in support of the no-confidence motion (abstentions are not counted).

Zuma has previously defeated six no confidence votes in parliament (where there was no secret ballot). After a decade at the helm of ANC, Zuma has crushed internal party revolts, most recently in May following his decision to dismiss Mr Gordhan.

If the vote succeeds, the speaker of parliament immediately becomes acting president, and MPs will have 30 days to elect a new head of state.

Fact: The Doomsday Clock was originally set at seven-minutes-to-midnight because the artist responsible for it thought it looked good.

African Rainbow Capital to take a 20% stake in Rain

  • Rain was formerly known as Wireless Business Solutions until June this year - it is a South African LTE-Advanced fixed and mobile network provider
  • Transaction terms were not disclosed

Flutterwave to raise US$10 million for its Series A from US investors

  • Flutterwave is a payments infrastructure provider for banks and businesses across sub-Saharan Africa
  • The startup has raised US$10 million for its Series A round from a group of investors led by Greycroft Partners and Green Visor Capital
  • Founded last year, the business has already processed over 10 million transactions worth US$1.2 billion
  • The fresh funding will be used to recruit additional team members, further develop its operational capabilities and expand further across the continent

Investec and RMB to to acquire the stakes in Kamoso Distribution

  • Investec Asset Management and RMB Ventures seem to be planning to acquire the stakes in Kamoso Distribution owned by Standard Chartered Private Equity and Development Capital Partners
  • The deal would give the South African private equity investors a combined 72% holding in the company
  • The firm was bought by an investor consortium led by Standard Chartered Private Equity in 2015 in a deal reportedly valued at US$45 million