Weekly Africa Newsbriefs 15 April

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    Leriba Africa Newsbrief

     

    Week commencing 15 April

     

    30 June

     

     

     

     

     

     

     

     

     

     

     

    Nigeria

    Helios acquires 25% interest in Axxela

    UK-based private equity firm Helios Investment Partners has acquired a 25% residual interest in Axxela from energy group Oando for $41.5m. Axxela is a designated natural gas shipper on the West African Gas Pipeline and is the pioneering private sector-led developer of natural gas distribution in Nigeria.

    Africa Global Funds 6 April

     

    Kenya

    Devenish secures 42% stake in Sidai

    Irish-based agriculture tech firm Devenish Nutrition has bought a 42% stake in Sidai Africa, a Kenyan-based animal feeds producer, for $2.2m. Devenish has expanded its export markets to the Middle East, sub-Saharan Africa, Turkey, Mexico and Denmark.

    Business Daily 10 April

     

    Kevian receives €10m for expansion

    Kenyan beverage firm Kevian has received an additional €10m from German sovereign wealth fund DEG for expansion purposes. This is the second round of funding that the Kevian has secured from DEG following an earlier loan of €7m.

    Liquid Africa 8 April

     

    Tunisia

    Cathay, AfricInvest launch tech fund

    Tunisia-based private equity firm Africinvest has teamed up with Cathay Capital — a global private equity firm based in Paris — to launch a new Africa tech fund with a target raise of $168m. The Cathay Africinvest Innovation Fund will focus on investments in African technology companies.

    Liquid Africa 10 April

     

    North Africa

    $15m boost for industrialisation fund

    The European Investment Bank has signed a commitment of $15m with the SPE Africa Industrialisation Fund which seeks to contribute to the development of the private sector in North Africa. The facility blends the EIB’s resources with European Commission resources under the Neighbourhood Investment Facility.

    Africa Global Funds 9 April

     

    Pan Africa

    Marriott on expansion drive

    US-based hospitality company Marriott International expects to add 19 new properties and more than 3,000 rooms to its Middle East and Africa portfolio in 2019. The new additions are in line with the company’s expansion plans to add more than 100 new properties and nearly 26,000 rooms across the region by the end of 2023.

    The New Times 9 April

     

    Boomplay raises $20m for streaming service

    Chinese music start-up Boomplay has raised $20m to expand its music streaming business in Africa. The company has 5-million music tracks and videos on its platform — with an emphasis on African artists — with 85% of users primarily in Nigeria, Ghana, Kenya and Tanzania.

    Liquid Africa 8 April

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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 15 April

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 15 April

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

Leriba Africa Newsbrief

 

Week commencing 15 April

 

30 June

 

 

 

 

 

 

 

 

 

 

 

Nigeria

Helios acquires 25% interest in Axxela

UK-based private equity firm Helios Investment Partners has acquired a 25% residual interest in Axxela from energy group Oando for $41.5m. Axxela is a designated natural gas shipper on the West African Gas Pipeline and is the pioneering private sector-led developer of natural gas distribution in Nigeria.

Africa Global Funds 6 April

 

Kenya

Devenish secures 42% stake in Sidai

Irish-based agriculture tech firm Devenish Nutrition has bought a 42% stake in Sidai Africa, a Kenyan-based animal feeds producer, for $2.2m. Devenish has expanded its export markets to the Middle East, sub-Saharan Africa, Turkey, Mexico and Denmark.

Business Daily 10 April

 

Kevian receives €10m for expansion

Kenyan beverage firm Kevian has received an additional €10m from German sovereign wealth fund DEG for expansion purposes. This is the second round of funding that the Kevian has secured from DEG following an earlier loan of €7m.

Liquid Africa 8 April

 

Tunisia

Cathay, AfricInvest launch tech fund

Tunisia-based private equity firm Africinvest has teamed up with Cathay Capital — a global private equity firm based in Paris — to launch a new Africa tech fund with a target raise of $168m. The Cathay Africinvest Innovation Fund will focus on investments in African technology companies.

Liquid Africa 10 April

 

North Africa

$15m boost for industrialisation fund

The European Investment Bank has signed a commitment of $15m with the SPE Africa Industrialisation Fund which seeks to contribute to the development of the private sector in North Africa. The facility blends the EIB’s resources with European Commission resources under the Neighbourhood Investment Facility.

Africa Global Funds 9 April

 

Pan Africa

Marriott on expansion drive

US-based hospitality company Marriott International expects to add 19 new properties and more than 3,000 rooms to its Middle East and Africa portfolio in 2019. The new additions are in line with the company’s expansion plans to add more than 100 new properties and nearly 26,000 rooms across the region by the end of 2023.

The New Times 9 April

 

Boomplay raises $20m for streaming service

Chinese music start-up Boomplay has raised $20m to expand its music streaming business in Africa. The company has 5-million music tracks and videos on its platform — with an emphasis on African artists — with 85% of users primarily in Nigeria, Ghana, Kenya and Tanzania.

Liquid Africa 8 April