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AGF Magazine - April 2019 issue

  • In a region where only a minority of the population has access to a bank account and SMEs struggle to get financial help from traditional banks, Albert Alsina, CEO and Founder of Mediterrania Capital Partners, explains how the PE industry is becoming a catalyst for the African Fintech ecosystem’s development, enabling large-scale banking and supporting entrepreneurs and SMEs in their expansion plans (pp. 10-12).
  • In this month’s issue of Africa Global Funds, we also caught up with Kenneth Kaniu, Britam Asset Managers CEO, to learn about their anchor investment in Tiserin Capital, and the needs and constraints of institutional investors in Kenya and East Africa (pp. 14-15).
  • On the infrastructure front, we hear from Moritz Breickmann, Investment Director at African Infrastructure Investment Managers (AIIM) who showcases some successful airport redevelopments in Africa. Read on to find why airport infrastructure projects on the continent can provide attractive long term returns to investors (p.17).
  • In this month’s issue we also learn that the FTIF Templeton Africa Fund was merged into the FTIF Templeton Frontier Markets Fund. We speak with Ahmed Awny and David Haglund about the Fund and its African investments (p.16).
  • Finally, Rob Childs, Head of International for Prescient Fund Services shares his views on the global distribution challenges facing African fund managers and why the firm decided to domicile their offshore fund range in Ireland (p. 22).
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News > Private Equity > Deals

Airtel Africa secures $1.25bn from Temasek, Warburg Pincus and others

Staff writer
Oct. 26, 2018, 9:27 p.m.
648

Word count: 281

Temasek, Warburg Pincus, Softbank Group International, Singtel and other global investors, have invested $1.25bn through a primary equity issuance in Airtel Africa, at a post money equity value of $4.4bn.

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Temasek, Warburg Pincus, Softbank Group International, Singtel and other global investors, have invested $1.25bn through a primary equity issuance in Airtel Africa, at a post money equity value of $4.4bn.

The proceeds will be used to reduce Airtel Africa’s existing debt and grow its business ahead of an intended Initial Public Offering. 

Airtel Africa is the second largest telecom operator in the continent with a customer base of 91 million and operations in 14 African countries. 

It ranks among the top two operators in most of its 14 markets and has been delivering healthy revenue growth in voice and data services. 

It has also performed strongly in its mobile wallet service, Airtel Money, which has 11.8 million subscribers.

Arthur Lang, CEO of Singtel’s International Group, said: “Our investment into Airtel Africa reflects our confidence in the long-term growth potential of Africa with its young and growing population.” 

“For many of Airtel Africa's customers, the mobile phone is the key enabler for digital and financial inclusion. As Airtel continues to execute on its transformation strategy to become a leader in data and mobile money in Africa, we believe it is in a strong position to benefit from increasing smartphone penetration and mobile money adoption.”

The African continent is projected to be the world’s second-fastest growing economic zone and the fastest growing mobile market with unique mobile subscribers expected to increase from 420 million at the end of 2016 to more than half a billion by 2020. 

As only 25% of Africa’s population has access to formal banking services, mobile money has filled the gap and become the engine for financial inclusion for both individuals and small businesses.

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