Dear Africa Finance Review Reader,

I hope you had a good weekend. In today’s weekly wrap-up edition

• Helios Towers acquires Airtel Africa’s Malawi tower assets for $55 million.

• World Bank announces the World’s first Wildlife Conservation Bond.

• Raxio Group invests in Tanzania’s first state-of-the-art, carrier-neutral, Tier III data center.

• Kasada Capital Management acquires South Africa Cape Grace hotel.

• Airtel Africa seeking $194m for its network expansion.

First 2 things:

1)Softbank Vision Fund 2 leads a $40 million investment in Kenya-based agritech Apollo Agriculture.

Kenya-based agritech Apollo Agriculture raised $40 million in Series B funding in the equity round led by Softbank Vision Fund 2. The startup which provides farmers with access to high-quality farm inputs, financing, and markets, plans to increase its number of farmers and introduce other products that deliver more value per acre of land.

Why is this important:

• Africa’s agriculture ecosystem is ripe for disruption, considering its importance in every Sub-sahara economy.

• Providing technology enablers to support the agriculture value chain will benefit farmers, agents, and customers.

• Tech companies like Apollo use satellite imagery data of farms and AI to rate the creditworthiness of farmers, funding to farmers continues to be an area that requires changes as part of providing solutions to the unbanked.

2)Raxio Group invests in Tanzania’s first state-of-the-art, carrier-neutral, Tier III data center.

The Raxio Group (“Raxio”), a premier pan-African data center developer and operator, announced it is investing and establishing ‘Raxio Tanzania’, the first state-of-the-art, carrier-neutral, Tier III data center in the country. ‘Raxio Tanzania’ is Raxio is the latest facility as part of its fast-expanding network of interconnected carrier-neutral, Tier III data centers across Africa.

Why is it important

• Tanzania is considered to be one of the biggest consumer markets in East Africa and one of the fastest-growing African economies with an average GDP growth rate of 6% over the last five years.

• Due to its growing consumer base having such connectivity hubs would strengthen the digital and economic growth potential while providing social-economic benefits to the East Africa region at large.

M & A Actions:

• Investment Firm Kasada Capital Management has announced the acquisition of South Africa’s 120-key South Africa Cape Grace hotel. This marks Kasada’s entry into the South African hospitality market and a platform to expand its presence throughout the continent.

• Africa-focused independent telecommunications infrastructure company Helios Towers has completed the acquisition of Airtel Africa's passive infrastructure company in Malawi for $55m. Helios Towers and Airtel Africa have also entered into a 12-year service agreement on the acquired assets, which, in line with prior communications, are expected to deliver revenues of US$23 million and Adjusted EBITDA of US$8 million in the first full year of ownership.

Private Equity Deals :

• InfraCo Africa, a part of the Private Infrastructure Development Group (PIDG), has signed a shareholders’ agreement with Globology Ltd committing $3.8m for the management and expansion of the company’s Waterbus marine transport services on Lake Victoria.

• Norfund (Norwegian Investment Fund for developing countries) and private equity fund Zebu Investment Partners have jointly invested in Mozambique- based Terramar, a leading importer, retailer, wholesaler, and distributor of frozen, chilled, and ambient consumer goods. Zebu committed $12 million but Norfund took a $6 million stake through its second Africa Food Security Fund. 

• Africa’s largest mezzanine fund manager Vantage Capital, announced today that it has provided $10 million of mezzanine debt funding to Compass Capital, a leading Egyptian private equity firm, to acquire six grade A office buildings in East Cairo.

Bonds Issuances :

• The World Bank (International Bank for Reconstruction and Development, IBRD) has priced the world’s first wildlife Conservation Bond (WCB) also known as the “Rhino Bond,” this five-year $150 million Sustainable Development Bond includes a potential performance payment from the Global Environment Facility (GEF), which will contribute to protecting and increasing black rhino populations in two protected areas in South Africa, the Addo Elephant National Park (AENP) and the Great Fish River Nature Reserve (GFRNR). 

Fundraising

• Airtel Africa is seeking $194m for its network expansion. The debt financing package will reportedly comprise $150 million in direct investment from the International Finance Corporation (IFC) an arm of the World Bank and a further $44 million from its Managed Co-Lending Portfolio Program (MCPP)

• The Pasteur Institute of Dakar (IPD) and the International Finance Corporation (IFC) will partner for the construction of a vaccine factory in Senegal. The $222 million infrastructure is intended to boost "the IPD's vaccine manufacturing capacity." In the short term, it will produce Covid-19 vaccines but, in the medium-term, it will start producing other vaccines, with the long term, the plant will be able to produce 300 million doses of vaccines -both for Covid-19 and other diseases- destined for African countries. 

Venture Capital Deals:

• Nigeria-based cloud infrastructure platform Simplifyd, has raised US$500,000 in pre-seed funding and announced the launch of ZeroData, its toll-free internet application platform.

• Ghana-based cancer research and diagnostics company Yemaachi Biotech has raised a $3 million seed round led by V8 Capital, with LifeLine Family Heritage Fund, Y Combinator, Tencent, LoftyInc Capital, VestedWorld, V Square Capital, and Ethan Perlstein also participating. 

The Economy :

• Ghana has increased its interest rates to a three year high of 17% due to rising inflation

• South Africa's 10-Year Government Bond Yield touched its lowest since March 17th at 9.6%, due to the ongoing war and its impact on the global economy.

• Rwanda’s GDP increased to 10.3% from 10.1% growth in the previous three-month period.

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