Weekly Africa Newsbriefs 1 July

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    Leriba Africa Newsbrief

     

    Week commencing 1 July

     

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    Morocco

    Nexteer Automotive expands to Africa

    Chinese car manufacturer Nexteer Automotive has opened its first factory in Africa in Kenitra, Morocco. The facility will manufacture car parts including electric power steering systems for Groupe PSA (formerly PSA Peugeot Citroen). The facility will also manufacture driveline systems for Fiat Chrysler Automobiles and the Renault-Nissan-Mitsubishi Alliance.

    Morocco World News 27 June

     

    Egypt

    App company for booking buses raises $42m expansion capital

    Swvl, an Egyptian app for booking buses, has raised $42m for expansion into other parts of Africa, including Nigeria. The company was founded two years ago and already operates in Kenya. It raised the funding from venture-capital firms including Sweden’s Vostok, Dubai-based BECO Capital, China’s MSA and Endeavor Catalyst, based in New York.

    Liquid Africa 21 June

     

    West Africa

    uMunthu acquires share in MAX.ng

    The uMunthu fund, through its West Africa partner Alitheia Capital, has acquired a stake in MAX.ng, an app-based motorcycle company based in West Africa. MAX is a mobility platform that connects users to a network of vetted professional motorcycle taxi drivers (known as MAX Champions) via mobile apps.

    Africa Global Funds 24 June

     

    Kenya

    Unicef partners with Nokia

    Unicef Kenya has teamed up with Finnish technology company Nokia to form venture to increase equitable access to digital literacy in Kenya. The co-operation aims to boost technology capacity among the most disadvantaged children in Kenya.

    Business Daily 26 June

     

    Nigeria

    World Bank signs $200m farming deal

    The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has signed a memorandum of agreement and action with the World Bank on agro-processing, productivity enhancement and livelihood Improvement support for $200m. The funding is a World Bank project for the development, financing, and support of agribusiness projects in Nigeria.

    The Guardian (Nigeria) 25 June

     

    Arnergy raises $9m expansion funding

    Nigerian distributed utility company, Arnergy, has raised $9m in a series A round of funding led by Breakthrough Energy Ventures with participation from the Norwegian Investment Fund for Developing Countries, European Development Finance Institutions, ElectriFI and others. The development would help Arnergy in achieving its expansion drive.

    The Guardian (Nigeria) 26 June

     

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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 Newsbriefs 1 July

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 1 July

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

Leriba Africa Newsbrief

 

Week commencing 1 July

 

flag-2732465_960_720

 

 

 

 

 

 

 

 

 

 

Morocco

Nexteer Automotive expands to Africa

Chinese car manufacturer Nexteer Automotive has opened its first factory in Africa in Kenitra, Morocco. The facility will manufacture car parts including electric power steering systems for Groupe PSA (formerly PSA Peugeot Citroen). The facility will also manufacture driveline systems for Fiat Chrysler Automobiles and the Renault-Nissan-Mitsubishi Alliance.

Morocco World News 27 June

 

Egypt

App company for booking buses raises $42m expansion capital

Swvl, an Egyptian app for booking buses, has raised $42m for expansion into other parts of Africa, including Nigeria. The company was founded two years ago and already operates in Kenya. It raised the funding from venture-capital firms including Sweden’s Vostok, Dubai-based BECO Capital, China’s MSA and Endeavor Catalyst, based in New York.

Liquid Africa 21 June

 

West Africa

uMunthu acquires share in MAX.ng

The uMunthu fund, through its West Africa partner Alitheia Capital, has acquired a stake in MAX.ng, an app-based motorcycle company based in West Africa. MAX is a mobility platform that connects users to a network of vetted professional motorcycle taxi drivers (known as MAX Champions) via mobile apps.

Africa Global Funds 24 June

 

Kenya

Unicef partners with Nokia

Unicef Kenya has teamed up with Finnish technology company Nokia to form venture to increase equitable access to digital literacy in Kenya. The co-operation aims to boost technology capacity among the most disadvantaged children in Kenya.

Business Daily 26 June

 

Nigeria

World Bank signs $200m farming deal

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has signed a memorandum of agreement and action with the World Bank on agro-processing, productivity enhancement and livelihood Improvement support for $200m. The funding is a World Bank project for the development, financing, and support of agribusiness projects in Nigeria.

The Guardian (Nigeria) 25 June

 

Arnergy raises $9m expansion funding

Nigerian distributed utility company, Arnergy, has raised $9m in a series A round of funding led by Breakthrough Energy Ventures with participation from the Norwegian Investment Fund for Developing Countries, European Development Finance Institutions, ElectriFI and others. The development would help Arnergy in achieving its expansion drive.

The Guardian (Nigeria) 26 June