Weekly Africa Newsbriefs 10 June


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.
GDP growth rate in the decade to 2013 average in Africa; 7% expected in the next decade
of the 10 fastest growing economies in the world over the next decade will be African
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.


of African countries score below 50 in Transparency International's corruption perception index
African countries use International Financial Reporting Standards, others inconsistent
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.


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.
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 June

Weekly newsbriefs

Weekly Africa Newsbriefs 10 June

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Leriba Africa Newsbrief


Week commencing 3 June












BP sells Egyptian concessions

BP has agreed to sell its interests in the Gulf of Suez oil concessions in Egypt to Dubai-based Dragon Oil for an undisclosed amount. Under the terms of the agreement Dragon Oil will purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company.

Reuters 3 June


Seed firm Misr Hytech sells 97% stake

Helios Investment Partners and the Egyptian American Enterprise Fund have acquired a 96.7% stake of Misr Hytech Seed International for an undisclosed amount. Founded in 1993, Misr Hytech is a breeder and producer of proprietary agricultural seeds and is and one of the Middle East and Africa’s largest independent seed companies

Africa Global Funds 5 June


West Africa

BNP considers selling African stakes

French international banking group BNP Paribas is considering selling units in three West African countries to focus on its larger and more profitable businesses on the continent. The company may dispose of its holdings in Guinea, Burkina Faso and Mali.

Bloomberg 30 May



Heat Exchange Products to acquire Valco

Water management company Heat Exchange Products is in the process of acquiring water piping company Valco Pipes. Once the acquisition is complete all employees will be retained. The entire business is expected to relocate to the Heat Exchange Products premises in Namibia.

Liquid Africa 5 June



IFC invests $2m in mortgage firm

The International Finance Corporation (IFC) is set to invest $2m in Kenyan Mortgage Refinance Company, a public-private company that provides long term funding to banks and savings and credit co-operative organisations to enable the institutions to expand their mortgage loans. The IFC did not say what stake it will get for its investment.

Business Daily 5 June