IFC is spending a total of $22 million to buy a 4% stake in ADvTECH, a South African private education provider. The investment is made up of two deals—1.6% was acquired in the market, whilst 2.5% of the stake will be in newly issued shares. The investment will support JSE-listed ADvTECH’s plans to expand into new African markets.
The open-market share purchase is particularly notable since the IFC normally invests in publicly-listed through the issuance of new shares.
“Africa’s population is the fastest growing in the world requiring increased jobs and people with skills to fill them,” said Oumar Seydi, the IFC’s Director for East and Southern Africa. “IFC can help African companies with proven records at home expand into new markets. ADvTECH has proven that it can fill gaps in the market by supporting excellent primary, secondary and tertiary education that will allow Africa’s workforce to meet the challenges of changing job markets in Africa and globally.”
The deal makes the IFC the fifth largest shareholder in AdvTECH behind Visio Capital, Coronation Fund Managers, Old Mutual and the Public Investment Corporation.