Weekly Africa Newsbriefs 12 August

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    Leriba Africa Newsbrief

     

    Week commencing 12 August 

     

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    South Sudan

    KCB Group reinvests in South Sudan

    Kenya’s largest bank by assets, KCB Group, plans to increase investment in South Sudan. After riding out the ruinous civil war for the past five years, the bank is reopening branches and has even introduced mobile banking to attract more customers with the aim of increasing its client base from 122 000 to 200 000 by end of next year.

    Bloomberg 8 August 

     

    Nigeria

    Diageo goes green

    British drinks giant Diageo plans to inject nearly $250m into sustainability projects at 11 of its African breweries. This will mark its largest green investment in a decade. The sustainability project will include renewable energy and water recycling systems at its breweries to reduce their carbon footprints.

    Vanguard 6 August

     

    Uganda & Rwanda

    Sokowatch expands

    Kenyan e-commerce start-up Sokowatch has launched in Rwanda and Uganda. Sokowatch allows informal traders to use their mobile phones to buy products from suppliers. This follows a $2.5m funding round. Investors include 4Dx Ventures, Lynett Capital and Village Global, Outlierz Ventures and Golden Palm Investments.

    Liquid Africa 7 August

     

    Kenya

    Safaricom seeks to expand usage of M-Pesa

    Safaricom has invested $3.9m in its international mobile money transfer business as part of its efforts to expand the usage of the M-Pesa platform.

    Daily Nation 5 August

     

    Accor expands

    French hospitality group Accor, the largest hotel chain outside of the US, plans to open its first McGallary Hotel Collection in Gigiri in the first quarter of 2021. The hotel, which will be opened in partnership with Jit Group, will be the fifth hotel under the hospitality group in Kenya, which operates different brands.  

    Business Daily August 8

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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 12 August

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 12 August

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

Leriba Africa Newsbrief

 

Week commencing 12 August 

 

paper-3147856_960_720 

 

 

 

 

 

 

 

 

 

South Sudan

KCB Group reinvests in South Sudan

Kenya’s largest bank by assets, KCB Group, plans to increase investment in South Sudan. After riding out the ruinous civil war for the past five years, the bank is reopening branches and has even introduced mobile banking to attract more customers with the aim of increasing its client base from 122 000 to 200 000 by end of next year.

Bloomberg 8 August 

 

Nigeria

Diageo goes green

British drinks giant Diageo plans to inject nearly $250m into sustainability projects at 11 of its African breweries. This will mark its largest green investment in a decade. The sustainability project will include renewable energy and water recycling systems at its breweries to reduce their carbon footprints.

Vanguard 6 August

 

Uganda & Rwanda

Sokowatch expands

Kenyan e-commerce start-up Sokowatch has launched in Rwanda and Uganda. Sokowatch allows informal traders to use their mobile phones to buy products from suppliers. This follows a $2.5m funding round. Investors include 4Dx Ventures, Lynett Capital and Village Global, Outlierz Ventures and Golden Palm Investments.

Liquid Africa 7 August

 

Kenya

Safaricom seeks to expand usage of M-Pesa

Safaricom has invested $3.9m in its international mobile money transfer business as part of its efforts to expand the usage of the M-Pesa platform.

Daily Nation 5 August

 

Accor expands

French hospitality group Accor, the largest hotel chain outside of the US, plans to open its first McGallary Hotel Collection in Gigiri in the first quarter of 2021. The hotel, which will be opened in partnership with Jit Group, will be the fifth hotel under the hospitality group in Kenya, which operates different brands.  

Business Daily August 8