Weekly Africa Newsbriefs 10 December

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    Leriba Africa Newsbrief

     

    Week commencing 10 December

     

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    Pan Africa

    EIB invests in Chad-Cameroon power line

    The European Union’s non-profit institution, The European Investment Bank (EIB), plans to invest in the Cameroon-Chad electricity interconnection project. A 700km power transmission line linking Cameroon to Chad will be installed while a 250km link road between Cameroon and Chad is planned.

    Liquid Africa 5 December

     

    Côte d’Ivoire

    Founding family buys back controlling stake

    Africa’s largest mezzanine fund manager, Vantage Capital, has provided €19m to Pétro Ivoire, a distributor of oil & gas products in Côte d’Ivoire. The funding has enabled the Kadio-Morokro founding family to regain a controlling equity stake in the company by facilitating the buyback of equity from two exiting private equity investors, Amethis and the West Africa Emerging Markets Growth Fund.

    Liquid Africa 4 December

     

    East Africa

    Ascent Capital Africa to raise $120m

    Private equity firm Ascent Capital Africa plans to raise $120m for its second fund that will invest in mid-sized companies across East Africa, where domestic demand is expanding. Ascent’s new fund, named the Ascent Rift Valley Fund II, will be based in Mauritius and targets raising as much as $90m in the first round

    Bloomberg 6 December

     

    Rwanda

    I&M Bank secures $500,000 advisory deal

    The International Finance Corporation (IFC) signed a two-year $500,000 advisory deal with Kenyan-based I&M Bank to expand access to finance for small and medium enterprises. The advisory project is the first for the IFC in Rwanda.

    The New Times 5 December

     

    Kenya

    Vivo energy opens $200,000 station

    Oil marketer Vivo Energy, which trades in Kenya under the Shell brand, has opened a $200,000 station in Lavington that will be the biggest outlet in Africa. The outlet will host coffee chain Java House, fast food outlet KFC, Safe Dose pharmacy and White Rose Drycleaners.

    Business Daily 6 December

     

    Telkom to join optic cable connection

    Telecommunications firm Telkom Kenya will be mapping a new fibre optic cable route that could enable its customers to enjoy higher speeds and eventually lower costs. The cable, known as Djibouti African Regional Express, will run for approximately 4,000km and link Djibouti, Somalia and Kenya through a partnership with Djibouti telecommunications.

    Business Daily 5 December

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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 10 December

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 10 December

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

Leriba Africa Newsbrief

 

Week commencing 10 December

 

power-lines-997249_960_720

 

 

 

 

 

 

 

 

 

 

Pan Africa

EIB invests in Chad-Cameroon power line

The European Union’s non-profit institution, The European Investment Bank (EIB), plans to invest in the Cameroon-Chad electricity interconnection project. A 700km power transmission line linking Cameroon to Chad will be installed while a 250km link road between Cameroon and Chad is planned.

Liquid Africa 5 December

 

Côte d’Ivoire

Founding family buys back controlling stake

Africa’s largest mezzanine fund manager, Vantage Capital, has provided €19m to Pétro Ivoire, a distributor of oil & gas products in Côte d’Ivoire. The funding has enabled the Kadio-Morokro founding family to regain a controlling equity stake in the company by facilitating the buyback of equity from two exiting private equity investors, Amethis and the West Africa Emerging Markets Growth Fund.

Liquid Africa 4 December

 

East Africa

Ascent Capital Africa to raise $120m

Private equity firm Ascent Capital Africa plans to raise $120m for its second fund that will invest in mid-sized companies across East Africa, where domestic demand is expanding. Ascent’s new fund, named the Ascent Rift Valley Fund II, will be based in Mauritius and targets raising as much as $90m in the first round

Bloomberg 6 December

 

Rwanda

I&M Bank secures $500,000 advisory deal

The International Finance Corporation (IFC) signed a two-year $500,000 advisory deal with Kenyan-based I&M Bank to expand access to finance for small and medium enterprises. The advisory project is the first for the IFC in Rwanda.

The New Times 5 December

 

Kenya

Vivo energy opens $200,000 station

Oil marketer Vivo Energy, which trades in Kenya under the Shell brand, has opened a $200,000 station in Lavington that will be the biggest outlet in Africa. The outlet will host coffee chain Java House, fast food outlet KFC, Safe Dose pharmacy and White Rose Drycleaners.

Business Daily 6 December

 

Telkom to join optic cable connection

Telecommunications firm Telkom Kenya will be mapping a new fibre optic cable route that could enable its customers to enjoy higher speeds and eventually lower costs. The cable, known as Djibouti African Regional Express, will run for approximately 4,000km and link Djibouti, Somalia and Kenya through a partnership with Djibouti telecommunications.

Business Daily 5 December