Weekly Africa Newsbriefs 15 July

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 July

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Weekly Africa Newsbriefs 15 July

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Leriba Africa Newsbrief

 

Week commencing 15 July

 

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Morocco

Rabat appoints Nuberg to build new factory

Indian turnkey management firm Nuberg EPC has been selected by Morocco’s SCE Chemicals to build a new Chlor-Alkali factory. The construction will take place in an industrial park near Casablanca.

Morocco World News 11 July

 

Kenya

Sterling acquires 20% stake in Afvest

Sterling Capital has reached a deal to acquire a 20% stake in Afvest, an emerging markets private equity firm, for an undisclosed value. Afvest, backed by Kenyan professionals, largely focuses on technology-driven start-ups and early-stage enterprises with growth potential.

Business Daily Africa 9 July

 

Nigeria

Bharti lists after raising $750m

Bharti Airtel’s African unit is listing in Nigeria after raising about $750m in London at the end of last month. Bharti, Africa’s second-largest wireless carrier by subscribers, now becomes Nigeria’s third-largest listed company.

Bloomberg 9 July

 

OPay raises $50m   

OPay, an Africa-focused mobile payments start-up founded by Norwegian browser company Opera, has raised $50m in funding. OPay will use the capital primarily to grow its digital finance business in Nigeria. Lead investors include Sequoia China, IDG Capital and Source Code Capital.

Liquid Africa 10 July

 

Rwanda

NOTS Solar Lamps to make $70m investment

NOTS Solar Lamps, an impact enterprise, and the government have announced a landmark deal that will accelerate the provision of electricity to the lowest-income families in Rwanda. NOTS will invest $70m over five years in a manufacturing facility for solar home systems – the first in Africa. Solar home systems are recognised by the United Nations and World Bank as an essential technology in the effort to provide rural families with electricity, ending energy poverty and enhancing life opportunities.

Liquid Africa 9 July