Investbridge, Centum and Sabis in Africa education venture

Wednesday, Jul 01, 2015

Dubai: Investbridge Capital (IBC) and Centum Investment Company (Centum) have partnered with Sabis Holdings (Sabis) to launch a new company that will invest in the education sector in Africa.

Investbridge Capital, is a privately-owned, DFSA regulated asset manager and corporate advisory firm. Centum is East Africa’s largest listed investment company with its shares listed on the Nairobi and Uganda stock exchanges. Sabis is a global education network that has a significant presence in the UAE through Choueifat schools.

The tripartite consortium will be responsible for the acquisition and development of a network of schools across Africa, which will be operated as part of the Sabis Network.

Centum and IBC will co-manage the company and drive the acquisition and development of the schools. Based in Kenya, Centum is one of East Africa’s leading investment firms, with more than $2 billion (Dh7.34 billion) of Assets under Management (AUMs). Its real estate development subsidiary, Athena, is a market leader in master developments and mixed-use properties.

The schools will be owned by a newly-formed holding company that will initially be funded by the three partners and eventually the consortium plans to allow select investors to participate in the investment.

“A young and growing population, government support and urbanisation will drive expansion in K-12 education in Africa, currently considered one of the last major frontiers of GDP growth,” said Mark DeSario, Chief Executive Officer of Investbridge Capital.

The consortium plans to build more than 20 schools in Africa over the next three to five years, with the cost of each school ranging between Dh74 million ($20 million) to Dh111 million ($30 million).

Confident

The investors have identified Kenya as the target country for its first school with other East African markets such as Uganda and Tanzania and further expansion in Egypt.

“Education is one of the key areas of growth across the African Continent. Kenya, in particular, is currently undergoing a transformational phase for quality K-12 education,” said James M. Mworia, Chief Executive Officer of Centum.

Africa is the second most populous region in the world, with approximately one billion people of which over 40 per cent under 15 years of age and a growing middle class that recognises the importance of good quality education. The consortium plans to capitalise on this through providing the desired quality and relevant education, made easily accessible to African children.

“We are confident that this partnership with Centum and Investbridge will make a lasting and positive contribution to the communities it serves, just as schools in our network have done in the 16 countries we currently operate in,” said Carl Bistany, President of Sabis.

Investbridge said there is growing interest from a mature class of generational investors from the Middle East from around the world to invest in education sector opportunities in Africa.

By Babu Das Augustine Banking Editor