Weekly Africa Newsbriefs 29 July

  •  

    To receive this brief in your email every Monday, please subscribe here.

    Leriba Africa Newsbrief

     

    Week commencing 29 July

     

    calculator-1044173_960_720

     

     

     

     

     

     

     

     

     

     

    Kenya

    AJ Capital secures majority stake in micro-insurer

    AJ Capital and Investment, a Dubai-based private equity firm, acquired a 51% stake in Kenyan micro-insurer start-up, Insurance For All. AJ Capital did not disclose the amount but said the funding would be used to support expansion and marketing.

    Liquid Africa 25 July

     

    Industrial park launched in Kiambo

    Bidco Africa Group, a consumer goods manufacturer, has opened a $192m industrial park in Kiambo, Kenya, as it considers expanding its manufacturing footprint with another plant in Nakuru. President Uhuru Kenyatta, who presided over the unveiling, said the new factory had already created 1,000 direct jobs and 5,000 indirect jobs throughout the Bidco distribution chain.

    Daily Nation 25 July

     

    Kenya launches Africa’s biggest wind farm

    Kenya has launched Africa’s biggest wind farm, valued at $680m, at Lake Turkana. The 365 turbine wind farm delivers 310MW of renewable power to Kenya’s national power grid. The wind power project secured $200m from the EU’s lending facility plus finance from a consortium of European and African companies.

    Business Day 22 July

     

    Zambia

    Court orders halt to Konkola liquidation

    The Johannesburg High Court has ordered Zambia to halt plans to liquidate and sell Konkola Copper Mines in Zambia. The court also ruled the state breached its shareholder obligations and continues to do so. The Zambian government said it would appeal the ruling, with Zambian Mines Minister Richard Musukwa saying on Facebook that The South African court has no jurisdiction in Zambia and the ruling isn’t enforceable in the nation

    Bloomberg 23 July

     

    Nigeria

    Cargo port undergoes $10m facility upgrade 

    Onne Port in Rivers State is set to attract more cargo following its acquisition of two mobile harbour cranes, capable of handling massive cargo, for $10m. The cranes are expected to bring the West Africa container terminal on par with its counterparts in Apapa and Tin Can Island ports in terms of equipment and operational efficiency.

    The Guardian Nigeria 26 July

      

    Uganda

    Investment in Ice Industries to double production

    XSML, a private equity fund that invests in central and eastern Africa, has invested in Ice industries through its African Rivers Fund. Ice is a producer of flake ice, which is used to preserve fresh produce, an essential element for the Ugandan fishing sector. The investment is expected to double Ice’s production capacity so that larger quantities can be provided to local fishing communities at lower prices.

    Liquid Africa 23 July

     

    This entry was posted in Snapshots, Weekly newsbriefs. Bookmark the permalink.

Opportunity

   
A rapidly growing and urbanising middle class set to experience a consumption boom; the world’s greatest resources of as-yet-untapped agricultural land, oil, gas and countless other commodities; and a growing number of entrenched, stable democracies with increasingly sophisticated democratic institutions. Africa is the last major region in the world to offer the prospect of take-off phase economic growth, delivering world-beating returns to investors.
5.6%
GDP growth rate in the decade to 2013 average in Africa; 7% expected in the next decade
7
of the 10 fastest growing economies in the world over the next decade will be African
4
of the 10 most improved economies for doing business are in Africa
   
Urbanisation Natural Resources
The population of Africa’s cities will triple by 2050 with over one billion people living in cities by 2040. Lagos is the largest with over 12,4 million people. Urbanisation presents opportunities for tertiary sectors like retail, telecommunications, banking and logistics. Major recent discoveries in oil, iron ore, natural gas, and other key commodities are set to provide major economic stimulus. Urbanisation in Africa and the rest of the world will drive demand for natural resources which Africa is uniquely positioned to satisfy with both new and old discoveries.
   
   

Risk

     
90%
of African countries score below 50 in Transparency International's corruption perception index
16
African countries use International Financial Reporting Standards, others inconsistent
45
African countries have media sectors that are considered not free
   
The continent remains a difficult place to do business. The regulatory and legal structures common in much of the world are only nascent in many African countries. In rapidly changing economies, reputations are only starting to develop and information on performance histories difficult to obtain. Weak media sectors often mean that critical information relevant to potential exposures is never publicly  disseminated. Data are scarce making traditional investment analysis difficult if not impossible. The incentives facing local partners are opaque and may well be antithetical to outside investors’ interests. As in any rapidly changing environment, opportunists are aiming to exploit potential investors. Just as the opportunities in Africa are clear, the stories of investments gone wrong are sobering.
   

Solved

   
Leriba is a specialist consultancy with a unique combination of financial and political research skills. We help analyse opportunities and examine current investments for unforeseen political and financial risks. We recognise the investment
 
opportunities in Africa but we are pragmatic about the challenges. Our insights provide actionable information which directly pay off through better investment decisions.
PEOPLE OUR VALUES COUNTRIES INDUSTRIES 
Our directors have decades of experience in Africa. We work with a network of associates across the continent with support staff in London and Johannesburg
 
First and foremost we aim to make a positive contribution to our clients and to the societies in which we operate. Clients can have full confidence in our ethics, professionalism and discretion. Our staff are governed by a strict code of conduct and many are members of professional societies
 
Unlike some other consultancies, our analysts live and work in Africa and have built up substantial networks and insight. We are able to work in any of Africa’s 54 countries.
 
We have worked in a wide range of industries, including:
 
Banking, oil & gas, mining, telecoms, IT, retail, logistics, agriculture, insurance, fund management, FMCG, hotels & tourism, energy and infrastructure 
       
       

Weekly Africa Newsbriefs 29 July

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 29 July

 

To receive this brief in your email every Monday, please subscribe here.

Leriba Africa Newsbrief

 

Week commencing 29 July

 

calculator-1044173_960_720

 

 

 

 

 

 

 

 

 

 

Kenya

AJ Capital secures majority stake in micro-insurer

AJ Capital and Investment, a Dubai-based private equity firm, acquired a 51% stake in Kenyan micro-insurer start-up, Insurance For All. AJ Capital did not disclose the amount but said the funding would be used to support expansion and marketing.

Liquid Africa 25 July

 

Industrial park launched in Kiambo

Bidco Africa Group, a consumer goods manufacturer, has opened a $192m industrial park in Kiambo, Kenya, as it considers expanding its manufacturing footprint with another plant in Nakuru. President Uhuru Kenyatta, who presided over the unveiling, said the new factory had already created 1,000 direct jobs and 5,000 indirect jobs throughout the Bidco distribution chain.

Daily Nation 25 July

 

Kenya launches Africa’s biggest wind farm

Kenya has launched Africa’s biggest wind farm, valued at $680m, at Lake Turkana. The 365 turbine wind farm delivers 310MW of renewable power to Kenya’s national power grid. The wind power project secured $200m from the EU’s lending facility plus finance from a consortium of European and African companies.

Business Day 22 July

 

Zambia

Court orders halt to Konkola liquidation

The Johannesburg High Court has ordered Zambia to halt plans to liquidate and sell Konkola Copper Mines in Zambia. The court also ruled the state breached its shareholder obligations and continues to do so. The Zambian government said it would appeal the ruling, with Zambian Mines Minister Richard Musukwa saying on Facebook that The South African court has no jurisdiction in Zambia and the ruling isn’t enforceable in the nation

Bloomberg 23 July

 

Nigeria

Cargo port undergoes $10m facility upgrade 

Onne Port in Rivers State is set to attract more cargo following its acquisition of two mobile harbour cranes, capable of handling massive cargo, for $10m. The cranes are expected to bring the West Africa container terminal on par with its counterparts in Apapa and Tin Can Island ports in terms of equipment and operational efficiency.

The Guardian Nigeria 26 July

  

Uganda

Investment in Ice Industries to double production

XSML, a private equity fund that invests in central and eastern Africa, has invested in Ice industries through its African Rivers Fund. Ice is a producer of flake ice, which is used to preserve fresh produce, an essential element for the Ugandan fishing sector. The investment is expected to double Ice’s production capacity so that larger quantities can be provided to local fishing communities at lower prices.

Liquid Africa 23 July