Africa Newsbriefs 10 April

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    Leriba Africa Newsbrief

     

     

    Week commencing 10 April 2017

     

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    Nigeria

    French drugs firm acquires Sipha as African launchpad

    Biogaran SAS, a closely held French pharmaceuticals manufacturer, plans to tap into Nigeria’s $1.3bn drugs market as a launchpad for its expansion into Africa. The unit of France’s second-largest drug maker, Les Laboratoires Servier, acquired Nigeria’s Swipha after an initial $500,000 investment. Biogaran expects Nigeria’s pharmaceuticals industry to grow by more than 12% annually.

    Bloomberg 6 April

     

    Fintech startup closes seed funding round

    Lidya, a fintech platform based in Nigeria, has closed a $1.25m seed funding round to further its mission of easing access to finance for small and medium enterprises across Africa. The round was led by Accion Venture Lab, the seed-stage investment initiative of Accion, which invests capital in fintech startups that increase access to and reduce the cost of financial services for the underbanked.

    African Business Central 3 April

     

    Rwanda

    Kibo backs I&M Rwanda in debut PIPE deal

    In its first private investment in public equity (PIPE) deal for its $63m second fund, private equity fund manager Kibo Capital Partners acquired a stake in the Rwandan business of long-term partner, I&M Bank. The transaction took place via an IPO on the Rwandan Stock Exchange. The size of the investment was undisclosed.

    Africa Capital Digest 9 April

     

    Ethiopia

    World Bank approves project to improve Modjo Dry Port

    The World Bank’s executive board approved a $150m project to increase the efficiency of trade logistics in Ethiopia. The project will focus on improving the Modjo Dry Port, a transportation hub that handles 95% of Ethiopia’s trade, but which is a major bottleneck on the Ethio-Djibouti trade corridor. It will support investments in physical infrastructure and ICT systems, as well as regulatory improvements.

    2Merkato.com 5 April

     

    Kenya

    IFC Invests in Insta Products

    The International Finance Corporation has made a combined investment and mobilisation of $11m into Insta Products, which produces ready-to-use therapeutic food, helping people afflicted with acute hunger in East Africa. The investment will help Insta expand its operations and supply food to an additional 350,000 people annually.

    Liquid Africa 6 April

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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 
       
       

Africa Newsbriefs 10 April

Snapshots
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Weekly newsbriefs

Africa Newsbriefs 10 April

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

Leriba Africa Newsbrief

 

 

Week commencing 10 April 2017

 

 thermometer-1539191_1280

 

 

 

 

 

 

 

 

 

Nigeria

French drugs firm acquires Sipha as African launchpad

Biogaran SAS, a closely held French pharmaceuticals manufacturer, plans to tap into Nigeria’s $1.3bn drugs market as a launchpad for its expansion into Africa. The unit of France’s second-largest drug maker, Les Laboratoires Servier, acquired Nigeria’s Swipha after an initial $500,000 investment. Biogaran expects Nigeria’s pharmaceuticals industry to grow by more than 12% annually.

Bloomberg 6 April

 

Fintech startup closes seed funding round

Lidya, a fintech platform based in Nigeria, has closed a $1.25m seed funding round to further its mission of easing access to finance for small and medium enterprises across Africa. The round was led by Accion Venture Lab, the seed-stage investment initiative of Accion, which invests capital in fintech startups that increase access to and reduce the cost of financial services for the underbanked.

African Business Central 3 April

 

Rwanda

Kibo backs I&M Rwanda in debut PIPE deal

In its first private investment in public equity (PIPE) deal for its $63m second fund, private equity fund manager Kibo Capital Partners acquired a stake in the Rwandan business of long-term partner, I&M Bank. The transaction took place via an IPO on the Rwandan Stock Exchange. The size of the investment was undisclosed.

Africa Capital Digest 9 April

 

Ethiopia

World Bank approves project to improve Modjo Dry Port

The World Bank’s executive board approved a $150m project to increase the efficiency of trade logistics in Ethiopia. The project will focus on improving the Modjo Dry Port, a transportation hub that handles 95% of Ethiopia’s trade, but which is a major bottleneck on the Ethio-Djibouti trade corridor. It will support investments in physical infrastructure and ICT systems, as well as regulatory improvements.

2Merkato.com 5 April

 

Kenya

IFC Invests in Insta Products

The International Finance Corporation has made a combined investment and mobilisation of $11m into Insta Products, which produces ready-to-use therapeutic food, helping people afflicted with acute hunger in East Africa. The investment will help Insta expand its operations and supply food to an additional 350,000 people annually.

Liquid Africa 6 April