Weekly Africa Newsbriefs 1 October

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    Leriba Africa Newsbrief

     

     Week commencing 1 October

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    Pan Africa

    Helios acquires 76% stake in Tpay

    Helios Investment Partners has acquired a 76% stake in Tpay Mobile from Egypt-based tech investment fund, A15. Tpay, a fast-growing direct carrier billing provider, operates in North Africa and the Middle East.

    Africa Global Funds 21 September

     

    Opic commits $25m to off-grid solar products

    The Overseas Private Investment Corporation (Opic) has committed $25m in financing to the Solar Energy Transformation Fund. The fund provides loans to companies developing off-grid solar products for sub-Saharan Africa and Asia.   

    Africa Global Funds 27 September

     

    Kenya

    Hyatt hotels enters Kenyan market  

    Global hospitality chain Hyatt Hotels is entering the Kenyan market. It has signed a management agreement with Kenyan real estate and construction company Kanha for the first Hyatt-branded hotels in Nairobi, expected to open in 2020. Hyatt has hotels in Morocco, Egypt, Tanzania and Zanzibar.

    Daily Nation 26 September

     

    Unilever East Africa signs recycling deal

    Consumer goods manufacturer Unilever East Africa has signed a deal with Nairobi-based plant Mr Green Africa to recycle plastic containers and cut pollution. The pact comes amid the government’s push to cut the use of plastics. Mr Green Africa uses waste to manufacture products such as buckets and water tanks while Unilever’s products such as Blue Band margarine and Vaseline are packaged in plastics. Kenya banned production, selling and using plastic bags last August.

    Daily Nation 24 September

     

    Rwanda

    Jica signs $24m electricity agreement

    The Rwandan government and the Japan International Co-operation Agency (Jica) signed a $24m financing agreement to support the third phase of the rehabilitation of substations and the electricity distribution network. The goal is to enable a stable supply of power and improve the electrification rate in the country’s capital, Kigali.

    Liquid Africa 25 September

     

    Tanzania

    TPDC switches to natural gas-powered buses

    The Tanzania Petroleum Development Corporation (TPDC) plans to shift to natural gas-powered buses on its transit routes in Dar es Salaam, which will decrease fuel use by up to 50%. The project will see at least 800 buses switch to natural gas. The system is also available to private transport operators. Tanzania plans to use fuel filling stations to distribute natural gas.

    Liquid Africa 21 September

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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 October

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 1 October

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

Leriba Africa Newsbrief

 

 Week commencing 1 October

keyboard-2309108_960_720 

 

 

 

 

 

Pan Africa

Helios acquires 76% stake in Tpay

Helios Investment Partners has acquired a 76% stake in Tpay Mobile from Egypt-based tech investment fund, A15. Tpay, a fast-growing direct carrier billing provider, operates in North Africa and the Middle East.

Africa Global Funds 21 September

 

Opic commits $25m to off-grid solar products

The Overseas Private Investment Corporation (Opic) has committed $25m in financing to the Solar Energy Transformation Fund. The fund provides loans to companies developing off-grid solar products for sub-Saharan Africa and Asia.   

Africa Global Funds 27 September

 

Kenya

Hyatt hotels enters Kenyan market  

Global hospitality chain Hyatt Hotels is entering the Kenyan market. It has signed a management agreement with Kenyan real estate and construction company Kanha for the first Hyatt-branded hotels in Nairobi, expected to open in 2020. Hyatt has hotels in Morocco, Egypt, Tanzania and Zanzibar.

Daily Nation 26 September

 

Unilever East Africa signs recycling deal

Consumer goods manufacturer Unilever East Africa has signed a deal with Nairobi-based plant Mr Green Africa to recycle plastic containers and cut pollution. The pact comes amid the government’s push to cut the use of plastics. Mr Green Africa uses waste to manufacture products such as buckets and water tanks while Unilever’s products such as Blue Band margarine and Vaseline are packaged in plastics. Kenya banned production, selling and using plastic bags last August.

Daily Nation 24 September

 

Rwanda

Jica signs $24m electricity agreement

The Rwandan government and the Japan International Co-operation Agency (Jica) signed a $24m financing agreement to support the third phase of the rehabilitation of substations and the electricity distribution network. The goal is to enable a stable supply of power and improve the electrification rate in the country’s capital, Kigali.

Liquid Africa 25 September

 

Tanzania

TPDC switches to natural gas-powered buses

The Tanzania Petroleum Development Corporation (TPDC) plans to shift to natural gas-powered buses on its transit routes in Dar es Salaam, which will decrease fuel use by up to 50%. The project will see at least 800 buses switch to natural gas. The system is also available to private transport operators. Tanzania plans to use fuel filling stations to distribute natural gas.

Liquid Africa 21 September