Wednesday, March 20, 2019 UTC

AGF Magazine - March 2019 issue

  • We focus on fixed income opportunities in both public and private markets. Read on to find in which fixed income instruments and in which African markets to invest on pp. 10-11. In addition, Ashley Benatar of Ashburton Investments shares his views on benefits and risks of investing in mezzanine debt on p.22.
  • We speak with Jérémie Ceyrac, Head of Equity, Responsible Investments at Proparco to learn more about the French development institution, financial products on offer, recent investments in Africa and African impact investment scene (pp. 13-15).
  • This month’s market feature focuses on Nigeria. Sven Richter, Fund Manager, Drakens Capital, writes about his recent trip to the West African country and his observations. “While Nigeria is attractive as an investment destination, the GDP growth is a disappointment for a county that we expect to be one of the leaders in Africa,” he says (pp. 16-17).
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News > Private Equity > Exits

AF II exits Kiboko

Africa Global Funds
Sept. 20, 2018, 9:20 p.m.

Word count: 394

AfricInvest Fund II (AF II) has exited from its investment in Kiboko Holdings (KH), a Mauritius-based company with diverse interests across the East African region in a variety of sectors including FMCG, pharmaceutical manufacturing and distribution, and insurance brokerage. 

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AfricInvest Fund II (AF II) has exited from its investment in Kiboko Holdings (KH), a Mauritius-based company with diverse interests across the East African region in a variety of sectors including FMCG, pharmaceutical manufacturing and distribution, and insurance brokerage. 

AF II’s exit took place following Kiboko’s sale of a controlling stake in its pharmaceutical subsidiary, AK Life Sciences, to The Carlyle Group.

Established in 2011, KH operates an FMCG business in partnership with a number of multinationals including P&G through AK Lifestyle in Uganda; a pharmaceutical business through AK Life Sciences in Uganda, Rwanda, Burundi, Kenya and Tanzania; and an insurance brokerage business through Kiboko Financial Services in Uganda.

KH, whose founders have worked together for more than 25 years, partnered with AfricInvest seven years ago. 

According to KH’s non-executive Chairman Chuni Shah, AfricInvest helped the group to reorganise and streamline its operations, to recruit an independent director with strong pharmaceutical experience, and to strengthen governance.

KH’s Group MD, Ramesh Babu, noted that since AfricInvest’ s investment the group has increased the production capacity of its pharmaceutical business to achieve scale and profitability, built a new warehouse for the FMCG business, and implemented several ESG initiatives.

AfricInvest’s CIO for Sub-Sahara Africa, Skander Oueslati, who was a board member of KH, said: “Through its consultative approach, AfricInvest added value to the KH group at different levels, including governance and HR, regional expansion, securing debt funding, enhancing production capacity and assisting in the review of new business opportunities with a focus on synergies and contribution to the bottom line.” 

“This resulted in a strong partnership with KHL’s founders. AfricInvest is proud to have been part of the success story of the KH group and we believe the new partners of AK Life Sciences Ltd will help KHL’s founders further develop their pharmaceutical business.”

George Odo, MD for AfricInvest East Africa, who was also a board member of AK Life Sciences, added: “KHL has not only significantly increased its revenue base over the investment period, but it has also doubled its Large Volume Parenteral capacity allowing it to provide more life-saving drugs at affordable prices. At the same time, KH has also doubled its staff numbers helping to increase employment in the region. Through this positive impact, KH has demonstrated that it is possible to improve financial performance and deliver sustainable social impact.”

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