Weekly Africa Newsbriefs 14 January

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 14 January

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Weekly newsbriefs

Weekly Africa Newsbriefs 14 January

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Leriba Africa Newsbrief

 

Week commencing 14 January

 

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Nigeria

Carlyle invests $40m in Wakanow

US private equity firm The Carlyle Group will invest $40m in Nigerian online travel agency Wakanow. The agency operates in west and east Africa with principal operations in Nigeria. Founded in 2009, Wakanow is one of West Africa’s largest full-service online travel companies.

Africa Global Funds 7 January

 

Egypt

Huawei partners with Talaat Moustafa Group

Chinese telecommunications company Huawei Technologies has signed a partnership agreement with Egyptian real estate developer Talaat Moustafa Group. Huawei will provide its technologies in the group’s upcoming projects in order to transform them into smart cities.

Daily News Egypt 11 January

 

Kenya

ECP acquires majority stake

Global private equity firm ECP has acquired a majority stake in restaurant group Artcaffé Coffee and Bakery (Artcaffé) for an undisclosed amount. The transaction will provide capital required for the business to implement strategic expansion opportunities. Artcaffé is a restaurant group consisting of multiple brand chains throughout Kenya.

Africa Global Funds 9 January

 

Prime Bank gains new investors

Tunisian-based investment and financial services company AfricInvest and Kenyan private equity fund Catalyst Principal Partners have invested in Kenya’s Prime Bank. Prime Bank offers banking services for large and small businesses through its branch and digital infrastructure.

Africa Global Funds 9 January

 

Cerba Healthcare enters joint venture

French-based medical biology laboratories company Cerba Healthcare has entered into a joint venture agreement with medical services provider Lancet Laboratories, based in South Africa. Lancet will hold a 49% stake in the joint venture with Cerba holding the balance. The agreement gives Cerba control over a network of more than 100 laboratories.

Daily Nation 10 January

 

Morocco

Trarem Afrique acquires investment

Kenyan Private equity firm CDG Capital Private Equity has acquired a stake in Trarem Afrique, a Moroccan manufacturer and distributor of office furniture. CDG’s investment is aimed at supporting Trarem’s growth plans and new project-based strategy. 

Africa Global Funds 9 January