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Date of incorporation: March 2016
Preference shares in issue: 4 143 332*
Auditor: Morison Mauritius
Preference share market capitalization: USD 4.6 million
Number of equity investment holdings: 3
Net asset value per preference share: USD 1.10


The Company’s objective is to generate above average investment returns from the investment opportunities the Directors introduce through their involvement with various investment structures and/or corporate networks, mainly in Africa. The Company evaluates investment decisions with the aim to deliver a total USD portfolio return of at least 12,5% per annum above the annual change in the United States Consumer Price Index over the lifetime of the investment.

The Company may invest in any asset class, listed or unlisted, in any investment market and in any currency provided 75% of its effective investment exposure (other than cash) is in Private Equity Assets. Any individual investment (at cost) may not comprise more than 30% of the total portfolio value at the time, or USD 8.0 million whichever is the greater.


2016 n/a n/a -2.01% 1.64% -0.40%
2017 5.88%  3.95% 10.07%


(USD’000) Novare II Alphamin Addis Pharma Equity total Cash Total Total %
Nigeria 682 - - 682 682 15%
Zambia 193 - - 193 193 4%
Mozambique 142 - - 142 142 3%
DRC - 1,226 - 1,226 1,226 26%
Ethopia - - 249 249 249 5%
Cash & Networking Capital - - - - 2,212 2,212 47%
TOTAL 1,017 1,226 249 2,492 2,212 4,704 100%


(USD’000) Novare II Alphamin Addis Pharma Equity total Liquid assets Total %
Mining - 1,226 - 1,226 1,226 26%
Property 1,017 - - 1,017 1,017 22%
Manufacturing & Distribution - - 249 249 249 5%
Cash & Networking Capital - - - - 2,212 2,212 47%
TOTAL 1,017 1,226 249 2,492 2,212 4,704 100%


APEO made no new investments in the quarter ended 30 June 2017. Members of the investment team spent time during the quarter visiting Ethiopia to investigate the prospects of an investment opportunity into the fast developing FMCG sector managed by the same private equity players that introduced us to Addis Pharma. An investment was consequently approved and made in July 2017. The current portfolio comprises of:

Novare Africa Property Fund II (“Novare II”)

An investment commitment of USD 2.0 million was made towards Novare II on 30 June 2016 during the fund’s final closing. Novare II is a USD 350 million fund that develops retail and commercial developments in major African cities.

Fifty percent of the investment commitment towards the fund had been drawn down by 30 June 2017. We expect that the remainder of the undrawn commitments will be called for within the next year to fund building projects coming on stream in Zambia and Mozambique. In the meantime, we are holding the cash requirements for future capital calls in a money market/short dated bond fund which achieved a USD 6% return in 2016.

The Fund decided not to commit to the Senegalese development referred to in a prior commentary, and re-applied the capital commitment to an additional A grade office building opportunity in Zambia. Although economic market conditions remain tough across Nigeria, Zambia and Mozambique, the prospects for the fund remains good given the prime location of the properties and blue chip anchor tenant profile. No revaluation of properties were undertaken during the period under review.

Alphamin Resources Corporation (“Alphamin”)

Alphamin, a Toronto listed tin mining company has commenced building a 13k ton per annum tin mine in 2017 at Bisie, North Kivu Province, in the DRC. The Bisie tin deposit is one of the largest and most significant tin deposits in the world.

Alphamin recently announced it had raised CAD 28.9 million to commence building the mine at a price of CAD 0.35 per share. The project continues to be supported by a strong tin price. The political situation in the DRC remains tense, but the Northern Kivu Province appears to be stable.

Alphamin’s share price closed at CAD 0.39 on 30 June 2017, against APEO’s subscription price of CAD 0.30 in the 3rd quarter of 2016.

Addis Pharmaceutical Factory Share Company ("Addis Pharma")

APEO invested USD 250 000 in October 2016 for a small share into Addis Pharma, a leading pharmaceutical manufacturer in Ethiopia when a co-investment opportunity presented itself. Addis Pharma manufactures a large number of products across different therapeutic categories that it supplies to both the Government and private sector in Ethiopia. .

Members of the APEO investment committee visited the factory during a recent visit to Ethiopia. The operations continue to trade profitably broadly in line with expectations, and the very significant expansion of the factory is progressing well. The new plant is expected to be commissioned during 2018, and will create the necessary capacity to take up a bigger slice of the local pharmaceutical market in line with Government stated policy of promoting import replacement. The investment remains in APEO’s books at cost. An Ethiopian country report can be viewed here.


Our existing investments all remain on track to better our underwriting criteria of US inflation plus 12.5% over the next few years. We continue to search for attractively priced investment opportunities where we have good insight into the potential risks and rewards.


Rudolf Pretorius

Brendon Jones

Brett Childs

James Henry


This document is intended to be utilised for information purposes only. Should you choose to use this document for any other purposes other than information, you should do so with the assistance of professional advice. APEO not is acting or purporting to act in any way as an advisor. If you rely on this information for any purpose whatsoever, you do so at your own risk. APEO does not accept any liability of whatever nature and howsoever arising in respect of any claim, damage, loss or expense, whether caused directly or indirectly including consequential loss or loss of profit, arising out of or in connection with you, the user, on the contents of this document, or the user of the information products and services described in this document. This document is for information purposes only and does not constitute or form part of any offer to the public to issue or sell, or any solicitation of any offer to subscribe for or purchase an investment, nor shall it or the fact of its distribution form the basis of, or be relied upon in connection with any contract for investment. Investors should take cognisance of the fact that there are risks involved in buying or selling any financial product. Illustrations, forecasts or hypothetical data are not guaranteed and are provided for illustrative purposes only. The value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. Past performance is not necessarily a guide to future performance and no guarantees are provided. The user agrees to submit exclusively to the law of the Republic of Mauritius and the jurisdiction of the courts of the Republic of Mauritius in respect of any disputes arising out of use of this document.

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