Private Capital’s role in achieving COP 2030 Breakthroughs in Africa (INDUSTRY)
COP 2030 Breakthroughs pinpoint specific tipping points that must be achieved by 2030 to keep on track with the Pathways’ vision.
This edition explores contributions from AVCA Members in achieving these breakthroughs in INDUSTRY, with other edition in this series contributions:
INDUSTRY
2030 TARGET: By 2030, a 60% reduction in operational emissions, while growing the output of critical materials (up to 5x), ensuring the highest ESG standards.
2023: Alitheia IDF invests US$5mn to revolutionise South Africa’s textile industry.
- A partnership between a South African woman-owned textile company, IVILI Group, and the first dedicated gender focused investing Private Equity Fund in Africa, Alitheia IDF, is set to boost South Africa’s textile industry by increasing local manufacturing output, creating jobs and rebuilding skills in the sector through a $5million investment.
- IVILITEX recently opened its large-scale garment manufacturing plant in Epping, The factory will leverage technology that allows the production and washing of garments with optimum levels of output and efficiency while maintaining low environmental impact.
2023: Exeo Capital’s Agri-Vie II Fund injects US$10mn into Ugandan diary production
- The African continent is becoming a net exporter of food and now, propelled by the African Continental Free Trade Area (AfCFTA), the agricultural sector could provide the impetus needed to boost Africa’s domestic processing capacity and reap far-reaching economic rewards. These favourable prospects bode well for food processing businesses like Amos Dairies Limited — the most recent investment by EXEO Capital’s Agri-Vie Fund II.
2023: FSD Africa GBP1mn in Africa Climate Ventures
- The investment represents the first institutional backing for the venture builder, which aims to assemble a portfolio of businesses focused on climate action across Africa, boosting continental participation in global carbon markets.
- FSD Africa Investments (FSDAi) has invested £1 million in Africa Climate Ventures (ACV), a pioneering venture builder working to build a US$45 million portfolio. ACV will catalyse the carbon asset class in Africa by building innovative businesses focused on solving our generation’s greatest challenge and at the same time capturing a significant share of global carbon markets in Africa.
2023: Savant Venture Fund co-investment in BurnStar Technologies
- Sibanye-Stillwater, a multinational mining and metals group with a diverse portfolio of projects and investments across five continents, and Savant Venture Fund, a leading sustainable technology and engineering investment firm, are proud to announce their strategic investment in BurnStar, a pioneering South African clean hydrogen company. This collaboration marks a significant milestone in South Africa’s journey toward a sustainable energy future, centered around the production of Guilt–Free (Turquoise) Hydrogen™.
INDUSTRY: MOBILE
2030 TARGET: 70% of industry electricity use is decarbonised by 2030
2023: DPI and Verod Capital partner to back Pan African Towers
The investment will act as a launchpad for Pan African Towers (PAT) to embark on the next phase of its strategy and accelerate the Nigerian telecommunications market.
- DPI and Verod’s decarbonisation plan will involve adding solar panels and lithium batteries. The companies will also seek to connect as many towers as possible to the grid. When the mobile industry began in the early 2000s, the MNOs tended to build towers with generators to avoid having to use Nigeria’s unreliable electricity grid.
- Today, although the grid still does not produce sufficient power to meet all the country’s needs, around 20 percent comes from hydro sources, according to the US International Trade Administration, making it a potential contributor to decarbonisation.
“The Nigerian demographic is currently experiencing a surge in data consumption and related services, driven by a generation of tech-savvy digital natives that are unparalleled. Verod is delighted to support PAT’s management with ample capital and value-creation expertise to navigate this period of growth.” said Daniel Adeoye, Principal and Head of Investments at Verod Capital
2023: AfricInvest, Amethis, Proparco and IFC acquire a majority stake in Netis, a pan-African telecommunication and energy infrastructure service provider
- Through its majority acquisition, the consortium aims to take advantage of the fast-growing African installation and maintenance telecom market to support the growth of digital inclusion across the continent. The funding will support Netis to expand in the countries where it currently operates and to enter new markets. The consortium and the co-founders will also focus the company’s impact agenda based on three pillars: female empowerment, environmental responsibility, and development of human resources.
“Netis is a leading African digital infrastructure services company, and it contributes to the digital development on the continent. We have put in place a strong consortium of investors that will support the management’s ambitious growth strategy. Increased digital connectivity is critical for the continent’s development and we aim to bring our humble contribution to this objective.” said Adnane Zerhouni, Partner at Amethis
2021: AIIM, Adenia Partners and IFC acquires majority stake in Eastcastle Infrastructure
- The deal comes as growth in data consumption across Africa is soaring, with data consumption per subscriber expected to increase fourfold by 2025, along with an expected 200 million new mobile Internet users. Mobile operators that use bandwidth intensive technologies, such as 3G, 4G and 5G are expected to account for more than 85% of connections by 2025, compared to around 38% in 2017. The growth in smartphone adoption in Africa is another factor leading to increasing demand for data, with smartphone usage set to rise to 65% of connections in 2025, up from 44% today.
- The number of towers across the region needs to increase significantly to accelerate the deployment of bandwidth intensive technologies such as 3G, 4G and 5G by Mobile Network Operators and to increase quality connectivity for individuals and businesses.
“Investment in Africa’s digital infrastructure is more important than ever to meet rising data demand and enable Africa’s digital economy.” comments Ed Stumpf, Investment Director at AIIM
“Eastcastle will play a key role in filling infrastructure gaps, by helping networks provide coverage and services both more efficiently and over a wider area.” commented Stephane Bacquaert, Managing Partner at Adenia
“With almost half of the world’s population still unconnected, bridging the digital divide is a core priority for IFC. By supporting infrastructure sharing initiatives, we can help accelerate digital connectivity at a lower cost while enabling consumers to access quality services.” commented Linda Munyengeterwa, IFC’s Regional Industry Director for Infrastructure
