Africa’s richest man, Aliko Dangote, is set to gain indirect exposure to Java House, Kenya’s largest fast-food chain, following a recent acquisition deal involving two Africa-focused private equity funds. UK-based Actis LLP has agreed to sell Java House to Alterra Capital Partners and Phatisa Fund Managers 2 Limited, pending approval from the COMESA Competition Commission.
Dangote’s Investment Link to Java House
Dangote, alongside U.S. billionaires David Rubenstein and Bill Conway (co-founders of the Carlyle Group), has backed Alterra Capital Partners, a private equity firm investing in high-growth African businesses. Alterra, through its $140 million Africa Accelerator Fund, will take a majority stake in Java House, while Phatisa, with its $143 million Food Fund 2, will hold a minority stake but retain control rights over the business.
Java House’s Growth and Market Dominance
Founded in 1999, Java House has expanded into a dominant fast-food brand in East Africa, boasting 93 outlets across 14 cities in Kenya, Uganda, and Rwanda. It competes with global brands like KFC, Burger King, and local chains like Artcaffe and Chicken Inn. Its portfolio includes Java House, Planet Yogurt, Three Sixty Degrees Pizza, Kukito Africa, and Foodscape Africa, making it one of the most diversified restaurant groups in the region.
The Fourth Ownership Change in a Decade
Java House has changed ownership multiple times:
•2012: Emerging Capital Partners acquired a 90% stake.
•2017: Abraaj Group bought it for over $100 million.
•2019: Actis LLP took control after Abraaj’s collapse.
•2024: Alterra and Phatisa have now agreed to acquire the chain.
Reports suggest that Mauritius-based Adenia Partners previously considered buying Java House for $25 million, but the deal did not materialize.
Impact on Dangote and the African Food Industry
Although Dangote does not directly operate in the restaurant sector, this strategic investment in Java House aligns with his broader interests in African consumer markets. The deal is expected to strengthen Java House’s growth strategy and expand its market dominance in East Africa.
As one of Africa’s most powerful investors, Dangote’s indirect involvement signals continued interest in the region’s fast-growing consumer sectors, potentially paving the way for further investments in the food and beverage industry across Africa.
