AfricInvest Fund III has finalized an agreement to invest in Britam Holdings, one of the leading financial services groups in East Africa. 

The investment will be made in partnership with DEG-Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”), the Dutch Development Bank FMO, and Proparco, a subsidiary of Agence Française de Développement (AFD), focused on private sector development.

AfricInvest, a pan-African mid-cap-focused private equity firm, has entered into a share subscription agreement with Britam, pursuant to which it will, along with the other partners, subscribe to ordinary shares to be issued by Britam. 

George Odo from AfricInvest, said: “This investment is in line with the strategy of our AFIII fund. We have identified a growth opportunity in a sector we know well—the financial sector—in a market where we have a strong presence.” 

“Most importantly we are entering into a partnership with experienced local entrepreneurs who have already laid a strong foundation in the region. We look forward to supporting Britam as it grows into a regional champion, and in so doing, delivering strong returns to our investors,” he said.

The proposed subscription is subject to conditions that are customary for transactions of this nature, including receiving the required regulatory approvals. 

Upon completion of the transaction, AfricInvest and its co-investment partners will hold approximately 14.3% of the issued ordinary shares of Britam.

Britam Holdings, previously known by as British-American Investments Company, is a diversified financial services group and is listed on the Nairobi Securities Exchange.

The group has interests across the Eastern and Southern Africa region, with operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.

Britam will use the new funds to drive its current strategy including investing in technology and consolidating its leadership position in the region across its various businesses including Insurance, Property and Asset Management.

Benson Wairegi, Group MD for Britam, said: “We chose to partner with AfricInvest because of their deep financial sector knowledge as well as their extensive experience working with insurance firms across the continent, both of which we hope to leverage.” 

“We also believe that this partnership will result in not only higher shareholder value, but also the overall development of the financial sector, and in particular insurance. We therefore look forward to a fruitful partnership”.