Weekly Africa Newsbriefs 17 September

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    Leriba Africa Newsbrief

     

    Week commencing 17 September

    Vivo

     

     

     

     

     

     

     

     

     

     Ethiopia

    VW plans components plant

    Volkswagen (VW) is considering a component assembly plant in Ethiopia in addition to its two recently announced assembly plants in Ghana and Nigeria. VW has start-up operations in Kenya, Rwanda, Nigeria and Ghana with total production capacity of 5,000 units.

    The New Times 11 September

     

    Senegal

    Miga pledges $105.4m to Senegalese wind farm

    The Multilateral Investment Guarantee Agency, a World Bank subsidiary, has issued a guarantee of $105.4m in support of the construction of the first wind farm in Senegal. The Parc Eolien Taiba N’diaye SA wind farm will consist of of 46 turbines, providing 158.7MW to the national grid in about two years’ time. Only 57% of the population has access to electricity.

    Africa Global Funds 12 September

     

    Malawi

    Harith invests in fibre network provider

    Harith General Partners is investing in Malawi’s biggest fibre network provider, Open Connect, taking a majority stake. The deal is part of Harith’s $1bn infrastructure investment on the continent. Harith has put almost $800m to work in African infrastructure and its other fibre investments in Africa, including a 30% stake in Nigeria’s Dark Fibre Africa.

    Liquid Africa 10 September

     

    Kenya

    RVE. SOL raises $2,1m to power Busia County  

    Portuguese clean energy company RVE. SOL has raised $2,1m through international investors to provide solar electricity in Busia County. The expansion will be chanelled towards electrification and providing clean water for up to 50,000 people. The company is in talks with several other counties along the border for similar projects.

    Business Daily 12 September

     

    Japanese firm bids for geothermal plant

    Toyota Tsusho in Kenya intends to bid for a 140MW geothermal power plant that the Kenya Electricity Generating Company plans to develop through a public-private partnership. KenGen has yet to invite bids for the project. Toyota Tsusho and Hyundai Engineering constructed KenGen’s largest geothermal project, which has been injecting 280MW of power into the grid since 2015.

    Liquid Africa 13 September

     

    West Africa

    AFDB commits $15m for SME growth

    The African Development Bank has approved a $15m investment in Verod Capital Growth Fund III. The fund aims to provide a vehicle to grow SMEs in West African countries including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.

    Africa Global Funds 11 September

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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 September

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 17 September

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

Leriba Africa Newsbrief

 

Week commencing 17 September

Vivo

 

 

 

 

 

 

 

 

 

 Ethiopia

VW plans components plant

Volkswagen (VW) is considering a component assembly plant in Ethiopia in addition to its two recently announced assembly plants in Ghana and Nigeria. VW has start-up operations in Kenya, Rwanda, Nigeria and Ghana with total production capacity of 5,000 units.

The New Times 11 September

 

Senegal

Miga pledges $105.4m to Senegalese wind farm

The Multilateral Investment Guarantee Agency, a World Bank subsidiary, has issued a guarantee of $105.4m in support of the construction of the first wind farm in Senegal. The Parc Eolien Taiba N’diaye SA wind farm will consist of of 46 turbines, providing 158.7MW to the national grid in about two years’ time. Only 57% of the population has access to electricity.

Africa Global Funds 12 September

 

Malawi

Harith invests in fibre network provider

Harith General Partners is investing in Malawi’s biggest fibre network provider, Open Connect, taking a majority stake. The deal is part of Harith’s $1bn infrastructure investment on the continent. Harith has put almost $800m to work in African infrastructure and its other fibre investments in Africa, including a 30% stake in Nigeria’s Dark Fibre Africa.

Liquid Africa 10 September

 

Kenya

RVE. SOL raises $2,1m to power Busia County  

Portuguese clean energy company RVE. SOL has raised $2,1m through international investors to provide solar electricity in Busia County. The expansion will be chanelled towards electrification and providing clean water for up to 50,000 people. The company is in talks with several other counties along the border for similar projects.

Business Daily 12 September

 

Japanese firm bids for geothermal plant

Toyota Tsusho in Kenya intends to bid for a 140MW geothermal power plant that the Kenya Electricity Generating Company plans to develop through a public-private partnership. KenGen has yet to invite bids for the project. Toyota Tsusho and Hyundai Engineering constructed KenGen’s largest geothermal project, which has been injecting 280MW of power into the grid since 2015.

Liquid Africa 13 September

 

West Africa

AFDB commits $15m for SME growth

The African Development Bank has approved a $15m investment in Verod Capital Growth Fund III. The fund aims to provide a vehicle to grow SMEs in West African countries including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.

Africa Global Funds 11 September