Cell C buys itself back

Cell C, South Africa’s fourth-largest telecom, just got a win. South Africa’s Competition Tribunal has unconditionally approved the buy-back of its contract customer base from majority shareholder, Blue Label Telecoms. 

The deal allows Cell C to regain control of Comm Equipment Company (CEC), the subsidiary that managed Cell C’s postpaid customers. 

ICYMI: In May, Blue Label said it may publicly list Cell C as part of a broader restructuring to unlock shareholder value. The markets enjoyed this news, and the company’s shares skyrocketed by 192%. 

The buyback is just one piece of the puzzle. Blue Label is also seeking approval from the Competition Commission (CompCom), South Africa’s regulatory body, which promotes fair competition, to increase its Cell C stake from 49.5% to 53.5%. This increase will enable Blue Label to control Cell C and facilitate broader restructuring to prepare Cell C for listing on the Johannesburg Stock Exchange (JSE).

Zoom out: In a market largely dominated by Vodacom and MTN, Cell C’s potential listing could mark a comeback for a telco which the CompCom has previously deemed as ‘in need of a lifeline’. But successful next steps will rely on getting through more hurdles: board approvals, shareholder consent, and favorable market conditions to make the process worth it.

Japanese investors have been circling Africa’s startup scene for a while, and they are not slowing down. 

This week, Uncovered Fund teamed up with Monex Ventures to launch a new ¥3 billion ($20 million) fund for early-stage companies focused on finance, distribution, mobility, and sustainability across Africa and the Middle East. 

Uncovered previously backed well-known fintech and retail startups such as Piggyvest, Gozem, Lemfi, Yoco, amongst others. But by branching into other sectors, the Fund could be exploring other paths to bridge African startups with corporate Japan.

Uncovered is one of several prominent Japanese investors that has taken an interest in the continent. Per Briter, Japanese investors, including corporate VCs, have put more than $1.8 billion into startups across 14 African countries since 2015.

Beyond private investment firms, Japanese corporate VCs, like Toyota Tsusho and SBI Holdings, have also held interests in Africa, often pairing investment with distribution deals. These investors often look for entry points into markets where their corporations can plug in directly.

Zoom out: The takeaway here is that Japanese investors are hedging against a shrinking population at home, betting on the use of tech to directly solve or innovate around structural issues that can scale with Africa’s growing population and mass market. Regardless of the incentive, this is much-needed patient capital for early-stage African founders.

In more news from Japan, Kenya has signed a $169 million Samurai financing deal with Japan. 

The deal, subject to Japanese regulation, would fuel the manufacturing of electric vehicles (EVs) and fix the country’s notoriously leaky power grids. 

It’s been a long time coming: Over a year ago, Kenya first floated plans with Nippon Export and Investment Insurance, Japan’s government-backed insurer, to raise £500 million through a yen-dominated Samurai bond. That deal is now on the table, but in a smaller slice. The big picture is that Japan is wiring cash that will help Kenya clean up its roads and cut electricity costs.

Kenya’s EV scene: With over 9000 EVs registered in the country, Kenya is in the cohort of countries like Morocco and South Africa, which are Africa’s largest EV markets. The country’s EV space is fast charging, with BasiGo targeting a roll-out of 1000 electric vans and matatus (buses), and Roam assembling up to 15 electric motorcycles daily in its Nairobi plant.

What does this deal mean for this sector? This move could force more international players to expand their business to Kenya, like they do in South Africa. Of course, the government will have to ensure that the tax and duty environment is favourable for these players.

For Kenyans, this deal signals a new era of cheaper power and cleaner rides. If this deal sticks, Kenya could become East Africa’s hub of electric vehicles.