Africa’s leading credit rating agency GCR to be acquired by Moody’s.
Africa’s leading credit rating agency GCR to be acquired by Moody’s.
Also Airtel Africa admitted into London FTSE 100, PalmPay Africa-focused payments startup raises $100m in Series A round.
Africa’s leading credit rating agency GCR to be acquired by Moody’s.
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Africa’s leading credit rating agency GCR to be acquired by Moody’s.
Moody's one of the largest global credit rating agencies is planning to acquire a 51% majority stake in Africa's leading credit rating agency, Global Credit Rating (GCR).
The all-cash transaction is expected to close in Q2 2022 and is subject to the required regulatory approvals.
Moody’s and Standard and Poor’s(S & P) issue 80% of international rating.
The acquisition will increase Moody’s footprint in the growing opportunities becoming present in the domestic Africa capital markets.
Why is this important?
The domestic capital markets of African countries continue to grow in recent years with increased demand for long-term funding driven by companies and governments looking to invest in capital-intensive infrastructure projects. The acquisition of Global Credit Rating (GCR) with an operational presence in Nigeria, South Africa, Senegal, Kenya, and Mauritius would provide Moody’s with deep local insight and intelligence needed to navigate the different high-growth Africa economies.
Airtel Africa admitted into London FTSE 100 and increases revenue by 25%.
Leading Africa-focused telecommunication provider Airtel Africa, who floated its shares on the London Stock Exchange in June 2019, was admitted to the FTSE 100 list. The news of the new admission was celebrated with some exciting trading updates :
Revenue was up by almost 25 % and earnings were up by 34 %.
Quarterly pretax profit was up to $297 million compared with $200 million in the previous year.
Revenue growth was up across all its operating regions: Nigeria - up by 29%, East Africa up by 24%, and Francophone Africa up by 19%.
Why is this important? Africa remains an attractive market for telecom providers due to the strong pre-paid mobile model adopted by many Africans who also tend to have more than one phone. As these telecom players leverage their infrastructure to the payment space, there is an opportunity for them to provide innovative digital banking offerings and expand financial inclusion around the continent to the unbanked customer segments.
Private Equity Deals :
RMB Corvest and Umoya Capital Partners with management and Calibre Capital, have invested in South Africa’s pharmaceutical brand owner and distributor Brunel Laboratoria (Pty) Ltd.
African mobility fintech and Uber’s exclusive vehicle financing and vehicle supply partner in Sub-Saharan Africa Moove has secured a US$ 10 million financing facility from NBK Capital Partners Mezzanine Fund II.
Venture Capital Deals:
Kigali International Financial Centre ( KIFC) has made its first FinTech only on Wednesday announced its first FinTech only focused Africa Fund with an initial capital of U$50M.
Egypt-based social commerce platform Brimore has raised a $25 million Series A round, led by the International Finance Corporation (IFC) and Endure Capital.
PalmPay an Africa-focused payments startup raised a $100 million Series A round last year with 5 million users.
Kenyan-based tech-enabled logistics platform Amitruck has raised $4 million in seed funding.
Web3 application builder Nestcoin has raised $6.45 million in pre-seed capital
Norrsken Foundation has teamed up with 30 unicorn founders and with some seasoned venture capital and private equity investors to launch a $200 million fund targeted at African startups.
M & A Activities:
Kenyan-based insurtech startup Lami Technologies has acquired Bluewave Insurance Agency for an undisclosed amount.
I&M Group now expects to complete paying for its 90 percent stake in Uganda’s Orient Bank by July after a full review of the asset quality of the subsidiary.
Affirma Capital and StonePine ACE Partners Limited have agreed to jointly invest $20 million for a significant minority stake in one of Egypt’s largest pharmaceuticals and nutraceuticals companies Nerhadou International.
Everstrong Capital through Everstrong Kenya Infrastructure Fund has acquired a majority equity investment in SealTowers Limited (SealTowers), a licensed Kenyan Cell Tower Company.
Fundraising Events:
Zambia-based AB BANK has secured €2 million from PROPARCO the French government’s private sector financing arm to improve its financing offering to micro, small and medium enterprises (MSMEs), including smallholder farmers.
The African Development Bank (AfDB) has approved a US$10mn grant from the Green Climate Fund to improve Liberia’s early warning weather systems.
Liquidity Event:
‘AAA’-rated specialised Infrastructure credit guarantee institution InfraCredit has announced its guarantee of Pan Africa Tower’s issuance of N10bn Infrastructure Bonds due in 2023.
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