Weekly Africa Newsbrief

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    Leriba Africa Newsbrief

     

     

    Week commencing 23 March

     

    cairo

     

     

     

     

     

     

     

     

     

     

     

    Leriba elections report

    Leriba has produced a briefing on elections scheduled for four countries during 2015: Nigeria, Tanzania, Guinea and Sudan. Three of them are set to be competitive with opposition parties ready to make a strong showing. 

    Leriba March 20

     

    Pan-Africa

     

    Mara launches pan-African infrastructure venture

    The Dubai-based pan-African conglomerate Mara Group, with interests in financial services, property, infrastructure, manufacturing and agriculture, will soon unveil a partnership with a global multinational for a large venture to invest in infrastructure across sub-Saharan and north Africa. Founder Ashish Thakkar says the joint venture will invest in new and existing projects with a focus on power generation. Another new venture hopes to capitalise on growing interest in online shopping with the launch of an e-commerce platform across 25 countries, based in Kenya.

    Financial Times March 20

     

    South Africa

     

    Sun International to acquire 100% of Peermont

    Hotel group Sun International plans to acquire 100% of the Peermont Group following the conclusion of definitive agreements between the two parties. Peermont operates a portfolio of gaming and hospitality businesses, including its flagship Emperors Palace casino resort in Johannesburg, three standalone hotels and one standalone casino.

    CNBC Africa 20 March

     

    PIC invests in two new solar plants

    Two new solar plants are to be built in the Northern Cape with SA’s state investment company, the Public Investment Corporation (PIC), buying a 20% stake in each. It will also provide debt funding for both totalling R600m. The Ilangalethu and Xina power stations are expected to contribute a combined 200MW to the national electricity grid.

    Business Day 18 March

     

    Eskom appoints ABB after terminating Alstom contract

    Power utility Eskom appoints ABB South Africa to execute the control and instrumentation contract for the Kusile power station, effective 17 April, after terminating its contract with Alstom S&E. The news comes a day after the power utility had its long-term local and foreign currency ratings lowered by ratings agency Standard & Poor’s.

    CNBC Africa 20 March

     

    Kenya

     

    Budweiser to enter Kenyan market

    Budweiser, one of the world’s biggest beer companies, has confirmed plans to enter the highly contested Kenyan beer market in a fortnight. Viva Global, a major beer distributing company in east Africa, will be the official importers and suppliers of the American beer. Over the past two years, Viva has conducted trials in the market ahead of Budweiser’s official launch.

    Ventures Africa March 20

     

     Nigeria

     

    Nigerian Gas Company may go public

    The Nigerian Gas Company may soon go up for public ownership if the House of Representative’s plan to list 30% of the company on the Nigerian Stock Exchange receives the president’s blessings. The Petroleum Industry Bill is expected to be passed by Parliament before May 31.

    Ventures Africa March 17

     

     Egypt

     

    Gulf states pledge $12bn to Egypt

    President Abdel-Fattah el-Sisi’s bid to revive Egypt’s economy received a boost at a three-day investor conference on the Red Sea. Saudi Arabia, the United Arab Emirates, Kuwait and Oman pledged more than $12bn, half of it as deposits in the central bank. Gulf Co-operation Council (GCC) investors also signed initial deals to invest in industries ranging from construction to power generation and energy. UAE companies, including Abu Dhabi-owned Aabar Investments PJSC, are taking the lead on projects to build two cities, one of which is to become Egypt’s new administrative capital.

    Business Day 17 March

     

     

     

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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 Newsbrief

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbrief

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

Leriba Africa Newsbrief

 

 

Week commencing 23 March

 

cairo

 

 

 

 

 

 

 

 

 

 

 

Leriba elections report

Leriba has produced a briefing on elections scheduled for four countries during 2015: Nigeria, Tanzania, Guinea and Sudan. Three of them are set to be competitive with opposition parties ready to make a strong showing. 

Leriba March 20

 

Pan-Africa

 

Mara launches pan-African infrastructure venture

The Dubai-based pan-African conglomerate Mara Group, with interests in financial services, property, infrastructure, manufacturing and agriculture, will soon unveil a partnership with a global multinational for a large venture to invest in infrastructure across sub-Saharan and north Africa. Founder Ashish Thakkar says the joint venture will invest in new and existing projects with a focus on power generation. Another new venture hopes to capitalise on growing interest in online shopping with the launch of an e-commerce platform across 25 countries, based in Kenya.

Financial Times March 20

 

South Africa

 

Sun International to acquire 100% of Peermont

Hotel group Sun International plans to acquire 100% of the Peermont Group following the conclusion of definitive agreements between the two parties. Peermont operates a portfolio of gaming and hospitality businesses, including its flagship Emperors Palace casino resort in Johannesburg, three standalone hotels and one standalone casino.

CNBC Africa 20 March

 

PIC invests in two new solar plants

Two new solar plants are to be built in the Northern Cape with SA’s state investment company, the Public Investment Corporation (PIC), buying a 20% stake in each. It will also provide debt funding for both totalling R600m. The Ilangalethu and Xina power stations are expected to contribute a combined 200MW to the national electricity grid.

Business Day 18 March

 

Eskom appoints ABB after terminating Alstom contract

Power utility Eskom appoints ABB South Africa to execute the control and instrumentation contract for the Kusile power station, effective 17 April, after terminating its contract with Alstom S&E. The news comes a day after the power utility had its long-term local and foreign currency ratings lowered by ratings agency Standard & Poor’s.

CNBC Africa 20 March

 

Kenya

 

Budweiser to enter Kenyan market

Budweiser, one of the world’s biggest beer companies, has confirmed plans to enter the highly contested Kenyan beer market in a fortnight. Viva Global, a major beer distributing company in east Africa, will be the official importers and suppliers of the American beer. Over the past two years, Viva has conducted trials in the market ahead of Budweiser’s official launch.

Ventures Africa March 20

 

 Nigeria

 

Nigerian Gas Company may go public

The Nigerian Gas Company may soon go up for public ownership if the House of Representative’s plan to list 30% of the company on the Nigerian Stock Exchange receives the president’s blessings. The Petroleum Industry Bill is expected to be passed by Parliament before May 31.

Ventures Africa March 17

 

 Egypt

 

Gulf states pledge $12bn to Egypt

President Abdel-Fattah el-Sisi’s bid to revive Egypt’s economy received a boost at a three-day investor conference on the Red Sea. Saudi Arabia, the United Arab Emirates, Kuwait and Oman pledged more than $12bn, half of it as deposits in the central bank. Gulf Co-operation Council (GCC) investors also signed initial deals to invest in industries ranging from construction to power generation and energy. UAE companies, including Abu Dhabi-owned Aabar Investments PJSC, are taking the lead on projects to build two cities, one of which is to become Egypt’s new administrative capital.

Business Day 17 March