Weekly Africa Newsbriefs 17 December

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    Leriba Africa Newsbrief

     

    Week commencing 17 December

     

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    Kenya

    LGT secures City Eye hospital acquisition

    The Competition Authority of Kenya has approved the acquisition of a 32.5% stake in Kenyan hospital chain City Eye Hospital by Swiss-based private banking company LGT Group. LGT is the largest family-owned private wealth and asset manager in Europe. The hospital provides outpatient services, diagnosis, treatment and counselling as well as surgery facilities.

    Liquid Africa 13 December

     

    CBA in merger talks with NIC

    Nairobi-based Bank of Africa (CBA) has opened merger talks with commercial bank National Industrial Credit Bank (NIC). The merger will create one of the largest financial services groups in East Africa, with a customer base estimated at 38-million people.

    The New Times 7 December

     

    Retailers move in as local groups collapse

    South African-based food retailer Shoprite Holdings opened its first store in Nairobi last week following the collapse of two local supermarket chains, Nakumatt Holdings and the state-backed Uchumi Supermarkets. French retailer Carrefour, Walmart’s Massmart Holdings and Choppies Enterprises of Botswana are also muscling in on the vacated market space.

    Bloomberg 13 December

     

    Egypt

    Liquid invests $400m in Telecom Egypt deal

    Pan African internet provider Liquid Telecom will invest $400m on data centres, infrastructure and financial inclusion in a deal signed with Telecom Egypt. The agreement includes a partnership between Telecom Egypt and Africa Data Centres, a subsidiary of Liquid, to build and operate the data centres.

    Egypt Business Directory 10 December

     

    Côte d’Ivoire

    SFO invests in shopping centre

    Sardar Family Office (SFO), a wealth management and private equity company, and local real estate investment and development company HC Capital Properties have invested an undisclosed amount in Cosmos Yopougo, a shopping centre in Côte d’Ivoire.

    Africa Global Funds 13 December

     

    Pan Africa

    MFS Africa enters digital partner deal

    African banking conglomerate Ecobank bank has appointed digital payment partner MFS Africa to enable cross-platform payment services for Ecobank account holders. The partnership allows Ecobank customers to send and receive money to and from more than 170-million mobile money users.

    The New Times 12 December

     

    Please note that this will be the final Leriba Africa newsbrief of the year. We wish you a festive season

     

     

     

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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 17 December

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 17 December

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

Leriba Africa Newsbrief

 

Week commencing 17 December

 

hospital-1477433_960_720

 

 

 

 

 

 

 

 

Kenya

LGT secures City Eye hospital acquisition

The Competition Authority of Kenya has approved the acquisition of a 32.5% stake in Kenyan hospital chain City Eye Hospital by Swiss-based private banking company LGT Group. LGT is the largest family-owned private wealth and asset manager in Europe. The hospital provides outpatient services, diagnosis, treatment and counselling as well as surgery facilities.

Liquid Africa 13 December

 

CBA in merger talks with NIC

Nairobi-based Bank of Africa (CBA) has opened merger talks with commercial bank National Industrial Credit Bank (NIC). The merger will create one of the largest financial services groups in East Africa, with a customer base estimated at 38-million people.

The New Times 7 December

 

Retailers move in as local groups collapse

South African-based food retailer Shoprite Holdings opened its first store in Nairobi last week following the collapse of two local supermarket chains, Nakumatt Holdings and the state-backed Uchumi Supermarkets. French retailer Carrefour, Walmart’s Massmart Holdings and Choppies Enterprises of Botswana are also muscling in on the vacated market space.

Bloomberg 13 December

 

Egypt

Liquid invests $400m in Telecom Egypt deal

Pan African internet provider Liquid Telecom will invest $400m on data centres, infrastructure and financial inclusion in a deal signed with Telecom Egypt. The agreement includes a partnership between Telecom Egypt and Africa Data Centres, a subsidiary of Liquid, to build and operate the data centres.

Egypt Business Directory 10 December

 

Côte d’Ivoire

SFO invests in shopping centre

Sardar Family Office (SFO), a wealth management and private equity company, and local real estate investment and development company HC Capital Properties have invested an undisclosed amount in Cosmos Yopougo, a shopping centre in Côte d’Ivoire.

Africa Global Funds 13 December

 

Pan Africa

MFS Africa enters digital partner deal

African banking conglomerate Ecobank bank has appointed digital payment partner MFS Africa to enable cross-platform payment services for Ecobank account holders. The partnership allows Ecobank customers to send and receive money to and from more than 170-million mobile money users.

The New Times 12 December

 

Please note that this will be the final Leriba Africa newsbrief of the year. We wish you a festive season