Weekly Africa Newsbriefs 11 March

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 March

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Weekly Africa Newsbriefs 11 March

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Leriba Africa Newsbrief

 

Week commencing 11 March 

 

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Kenya

Danish firm takes stake in Sidian Bank

Kenyan-based Sidian Bank has received a $1.2m boost from Danish investment firm Investment Fund for Developing Countries. Its 20% stake makes it the second-largest shareholder in Sidian Bank, which needs to raise its core capital following two years of losses.

Standard Media 8 March

 

Enko invests in Software Technologies

Software Technologies, a Kenyan-headquartered proprietary software solutions provider and IT training company, has secured an investment from global private equity investor Enko Capital Managers. The undisclosed amount will be used to provide funding to roll out its existing suite of software products into other African markets.

Liquid Africa 5 March

 

Egypt

Yellow Door Energy launches $50m solar projects

 

Energy company Yellow Door Energy is planning to implement several solar energy projects in Egypt, estimated at $50m, with various capacities of up to 20MW. Yellow Door Energy, based in the United Arab Emirates, will be offering its services at prices that are 15-20% below those of the Egyptian government’s.

 

 Daily News Egypt 5 March

 

EFG Hermes plans Asian expansion

EFG Hermes, Egypt’s biggest investment bank, is considering expanding into southeast Asia as it seeks to grow in emerging markets. The bank, which obtained a stockbroking licence in Kenya in 2017, also plans to use Nigeria as a regional hub.

Bloomberg 3 March

 

Uganda

Kikagati secures $27m loan for hydro plant

The Emerging Africa Infrastructure Fund (EAIF) has signed a $27m loan to Kikagati Power Company, which is building a 14MW run-of-the-river hydro electricity generating station on the Kagera River. The Kikagati plant is the 10th renewable energy development EAIF has backed in Uganda.

Africa Global Funds 5 March

 

 Botswana

MTN sells Botswana unit for $300m

Mobile-phone company MTN Group has announced the disposal of its share in Botswana’s Mascom. MTN has agreed to sell its 53% stake in Mascom to Econet Wireless Zimbabwe for $300m. The mobile group is facing several challenges across its territories, with a Nigeria court hearing into an alleged unpaid tax bill of $2bn due later this month.

Bloomberg 5 March