Investors update: Mezzanine provider Vantage Capital invests $33m in Morocco’s Promamec

Mezzanine provider Vantage Capital invests $33m in Morocco’s Promamec

Highlights

• Vantage Capital, one of Africa’s largest mezzanine fund managers, has made a $33 million equity investment in Promamec, which will facilitate the exit of the private equity fund AfricInvest and fund growth capex.
• Promamec is a pioneer in the local production of medical consumables and has grown into one of Morocco’s leading medical consumables and equipment distributors.
• This investment will enable the company to finance its development plan which involves increasing production capacities, broadening product offerings, and strengthening its positioning in sub-Saharan Africa.

Source: ABC

Our Takeaway

This transaction represents Vantage Capital’s 34th investment across four different funds with its portfolio of investments spread across 11 African countries. Promamec also marks Vantage Capital’s third investment in Morocco, thus reinforcing its presence in one of its key target markets. Along with venture capital, private equity investments have grown significantly in Africa over the past decade. Per AVCA, $7.6 billion in private investments (both VC and PE) was poured into Africa last year across 626 deals, a remarkable 46% year-over-year increase in deal volume, impressive figures considering 2022 presented numerous challenges for private capital fund managers globally.

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Kenya’s Fingo unveils neobank in partnership with Ecobank

Highlights

• Fingo, a YC-backed Kenyan fintech, launched its digital bank, developed in collaboration with Pan-African financial institution Ecobank Kenya.
• The startup aims to provide financial services that appeal to a fast-growing African youthful population that happens to be the youngest globally but the most financially marginalized.
• The Ecobank subsidiary unveiled the neobank, said to be the first of its kind in the East African country, in an event with the country’s president, William Ruto, in attendance.

Source: TechCrunch

Our Takeaway

Neobanks, also known as digital-only banks, have gained popularity in Africa in recent years. They offer a range of banking services through a mobile app or website, without the need for physical branches and notable names include Kuda, Carbon, and Fairmoney in Nigeria, as well as TymeBank and Discovery in South Africa. These banks have attracted a significant number of customers, especially among the younger generation, due to their ease of use, lower fees, and innovative features such as savings goals and budget tracking. With the increasing adoption of smartphones and mobile technology in Africa, neobanks are well-positioned for growth and have the potential to reach previously underserved populations.

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Access Bank gets the green light to acquire Finibanco Angola

Highlights

• Nigeria-based Access Bank has received regulatory approval from the Central Bank of Angola to proceed with the purchase of a majority stake in Finibanco Angola.
• The lender had already received approval from the Central Bank of Nigeria to move ahead with the acquisition and will now wait for greenlight on the transaction from Angolan authorities, which it expects to get in the “coming days.”
• Additionally, Access also signed agreements with minority shareholders in Finibanco Angola to buy their stake after which the bank intends to hold an 80% stake in the business.

Source: Punch

Our Takeaway

Nigeria’s largest bank by customer base, Access Bank has expanded its pan-African footprint significantly in the last few years through acquisitions. In 2021, it acquired a majority stake in BancABC of Botswana, offsetting the most active day in the history of the country’s bourse, the Botswana Stock Exchange. Per Tracxn, the bank has made 8 acquisitions, spending more than $285 million on those deals. Access Bank’s entry into Angola could be well timed as net profits of the country’s banking sector increased by 295% in 2021 to 592.402 billion kwanzas (€1.3 billion) and are fast growing.