Weekly Africa Newsbrief

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    Leriba Africa Newsbrief

     

    Week commencing 11 July 2016

    angola+matala+hydro+dam

     

     

     

     

     

     

     

     

     

     

    Angola

    Privinvest to develop hydrokinetic power

    Angola has signed a memorandum of understanding with Privinvest, the Middle East headquartered industrial group, to introduce hydrokinetic power generation over the next decade. The agreement includes the construction of hydrokinetic turbines and the establishment of hydro-energy fields, and it conforms with the Angolan government’s strategy to provide access to energy to more than 14-million people by 2025.

    Yahoo Finance 7 July


    Nigeria

    Pan Africa Solar to invest $146m in new solar plant

    Pan Africa Solar has signed Nigeria’s first solar power purchase agreement with the federal government with a plan to invest $146m in building a new power plant. The 75MW solar photovoltaic power project in Katsina State will sell power for a tariff of US11.5c per kWh and be inaugurated next year.

    Business News 8 July


    Mozambique

    Renewed interest in gas fields

    Exxon Mobil Corporation and Qatar Petroleum have teamed up to look at energy assets in Mozambique, home to some of the biggest natural gas discoveries in a generation, according to four people with knowledge of their plans. The companies are considering buying stakes in gas fields owned by Anadarko Petroleum Corporation and Eni SpA.

    Bloomberg 6 July


    Kenya

    DEG increases stake in Zep-Re

    German investment fund DEG has bought an additional 5.4% of Nairobi-based reinsurance company Zep–Re, increasing its overall stake to 15%. The DEG deal comes after a similar move by Kenya Re which acquired an additional 4.44% stake in the firm last month to cement its position as the single-largest shareholder with 20%.

    Daily Nation 8 July


    Guinea

    Rio shelves Simandou project

    Rio Tinto has shelved its $20bn Simandou iron ore project in Guinea because of a sustained slump in prices. The world’s second-biggest miner by market capitalisation had been seeking financing for Simandou, even after a $1.1bn writedown on the project in February.

    Business Day 4 July

     

    Sub-Saharan Africa

    BMW SA takes over regional distribution and marketing

    BMW South Africa will take responsibility for distribution and marketing activities across the sub-Saharan region. It will initially focus on seven countries beyond SA: Nigeria, Senegal, Ivory Coast, Togo, Ghana, Kenya and Angola. The expansion covers all BMW group marques, including Mini and Rolls-Royce. Last year, BMW SA announced it would invest R6bn in its Rosslyn assembly plant in Pretoria to build the next-generation X3 SUV.

    Business Day 5 July

     

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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

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Weekly Africa Newsbrief

 

 

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

Leriba Africa Newsbrief

 

Week commencing 11 July 2016

angola+matala+hydro+dam

 

 

 

 

 

 

 

 

 

 

Angola

Privinvest to develop hydrokinetic power

Angola has signed a memorandum of understanding with Privinvest, the Middle East headquartered industrial group, to introduce hydrokinetic power generation over the next decade. The agreement includes the construction of hydrokinetic turbines and the establishment of hydro-energy fields, and it conforms with the Angolan government’s strategy to provide access to energy to more than 14-million people by 2025.

Yahoo Finance 7 July


Nigeria

Pan Africa Solar to invest $146m in new solar plant

Pan Africa Solar has signed Nigeria’s first solar power purchase agreement with the federal government with a plan to invest $146m in building a new power plant. The 75MW solar photovoltaic power project in Katsina State will sell power for a tariff of US11.5c per kWh and be inaugurated next year.

Business News 8 July


Mozambique

Renewed interest in gas fields

Exxon Mobil Corporation and Qatar Petroleum have teamed up to look at energy assets in Mozambique, home to some of the biggest natural gas discoveries in a generation, according to four people with knowledge of their plans. The companies are considering buying stakes in gas fields owned by Anadarko Petroleum Corporation and Eni SpA.

Bloomberg 6 July


Kenya

DEG increases stake in Zep-Re

German investment fund DEG has bought an additional 5.4% of Nairobi-based reinsurance company Zep–Re, increasing its overall stake to 15%. The DEG deal comes after a similar move by Kenya Re which acquired an additional 4.44% stake in the firm last month to cement its position as the single-largest shareholder with 20%.

Daily Nation 8 July


Guinea

Rio shelves Simandou project

Rio Tinto has shelved its $20bn Simandou iron ore project in Guinea because of a sustained slump in prices. The world’s second-biggest miner by market capitalisation had been seeking financing for Simandou, even after a $1.1bn writedown on the project in February.

Business Day 4 July

 

Sub-Saharan Africa

BMW SA takes over regional distribution and marketing

BMW South Africa will take responsibility for distribution and marketing activities across the sub-Saharan region. It will initially focus on seven countries beyond SA: Nigeria, Senegal, Ivory Coast, Togo, Ghana, Kenya and Angola. The expansion covers all BMW group marques, including Mini and Rolls-Royce. Last year, BMW SA announced it would invest R6bn in its Rosslyn assembly plant in Pretoria to build the next-generation X3 SUV.

Business Day 5 July