Weekly Africa Newsbriefs 11 February

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 11 February

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Weekly Africa Newsbriefs 11 February

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Leriba Africa Newsbrief

 

Week commencing 11 February

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Kenya

ISS acquires Dodwell shipping group

Dubai-based logistics and shipping company ISS Global Forwarding is acquiring Dodwell & Co from Kenyan firm Inchape Shipping Services. Dodwell & Co, based in Mombasa, is involved in maritime and freight forwarding services. The deal will see the United Arab Emirates government step up competition in the local logistics sector that is dominated by players including Danish conglomerate Maersk and French firm Bolloré.

Business Daily 7 February

 

Mauritian duty-free company to open at Jomo Kenyatta

Mauritian duty-free company Mauritius Duty Free Paradise has announced plans to venture into the Kenyan market with an as-yet unnamed local partner. Duty-free retailers have bulked up their footprints around the world as wealthy travellers splurge millions on products such as designer shirts, watches and cosmetics.

Business Daily 6 February

 

Pan Africa

Radisson Hotel Group steps up in Africa

Belgium-based Radisson Hotel Group plans to operate 130 hotels in Africa by 2022. After rebranding last year from Carlson Rezidor Hotel Group, the company introduced new brands in Africa including the Radisson Collection. Radisson plans to open five more hotels this year in Algeria, Morocco, Guinea, Niger and Kenya.

Reuters 7 February

 

Britam Asset Managers invests $1,4m

Kenyan-based Britam Asset Managers has invested $1,4m in private equity firm Everstrong Capital, which invests in energy assets in Africa. Everstrong Capital has used the funds to buy a stake in the Heavy Fuel Oil Athi River II Power Plant owned by Gulf Energy, one of the top oil and energy players in East Africa.

Africa Global Funds 5 February

 

Egypt

Afreximbank launches $100m fund

Egyptian Afreximbank has edged closer to operationalisation of its newly created export fund with an initial $100m commitment.  The Fund for Export Development in Africa aims to support technology space, travel & tourism, transport & logistics and industrial companies.

The New Times 5 February