Weekly Africa Newsbriefs 18 February

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    Leriba Africa Newsbrief

     

    Week commencing 18 February

     

    nissan-885309_960_720

     

    Algeria

    Nissan to build car plant

    Japanese car manufacturer Nissan Motors signed a $160m joint venture agreement with an Algerian private partner to build a car assembly plant. The plant, near the western city of Oran, will start production in the first half of 2020 with a capacity of 63,500 vehicles a year.

    Reuters 12 February

     

    Kenya

    Brenntag Group acquires Desbro

    German-based chemical distributor Brenntag Group has acquired chemical distributor Desbro for an undisclosed amount. Brenntag is a distributor in Europe, the Middle East and Africa involved in the manufacture of food additives, preservatives, oil and gas, adhesives and polymers.

    Liquid Africa 12 February 

     

    Rwanda

    Sanlam seals Saham and Soras acquisitions

    South African insurance company company Sanlam Group has taken over Soras Assurance General and Saham Assurance in Rwanda. The process began in 2014 when Sanlam acquired a 63% stake in Soras after investing $24.3m. Sanlam is active in 33 African countries with more than 3,000 employees, generating profits on the continent of $1.6bn.

    The New Times 5 February

     

    Morocco

    Third electric link with Spain commissioned

    Morocco and Spain have agreed to develop a third electric interconnection through the Strait of Gibraltar. A memorandum of understanding mandates the system operators of the two countries to analyse, develop and build the interconnection for commissioning by 2026. The aim is to promote regional electricity trade, improve the reliability of electricity systems and maintain the security of the interconnected networks across the Maghreb.

    Morocco World News 14 February

     

    Marriott to open resort in Marrakech

    United Real Estate, a unit of Kuwait Projects, and Marriott International have agreed to open a resort near Marrakech. The St Regis Marrakech in central Morocco is set to open in 2024. Marriott has signed deals with partners to increase the number of its hotels in Africa to 50% by 2023.

    Reuters 9 February

     

    Egypt

    Radisson add six hotels to portfolio

    Belgium-based Radisson Hotel Group signed up six new hotels in Egypt as part of a portfolio deal across its numerous brands. The agreement was signed with existing business partner Zaghloul Holdings, a Cairo-based business conglomerate operating in various industries.

    Egypt Business Directory 12 February

     

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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 18 February

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Weekly newsbriefs

Weekly Africa Newsbriefs 18 February

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

Leriba Africa Newsbrief

 

Week commencing 18 February

 

nissan-885309_960_720

 

Algeria

Nissan to build car plant

Japanese car manufacturer Nissan Motors signed a $160m joint venture agreement with an Algerian private partner to build a car assembly plant. The plant, near the western city of Oran, will start production in the first half of 2020 with a capacity of 63,500 vehicles a year.

Reuters 12 February

 

Kenya

Brenntag Group acquires Desbro

German-based chemical distributor Brenntag Group has acquired chemical distributor Desbro for an undisclosed amount. Brenntag is a distributor in Europe, the Middle East and Africa involved in the manufacture of food additives, preservatives, oil and gas, adhesives and polymers.

Liquid Africa 12 February 

 

Rwanda

Sanlam seals Saham and Soras acquisitions

South African insurance company company Sanlam Group has taken over Soras Assurance General and Saham Assurance in Rwanda. The process began in 2014 when Sanlam acquired a 63% stake in Soras after investing $24.3m. Sanlam is active in 33 African countries with more than 3,000 employees, generating profits on the continent of $1.6bn.

The New Times 5 February

 

Morocco

Third electric link with Spain commissioned

Morocco and Spain have agreed to develop a third electric interconnection through the Strait of Gibraltar. A memorandum of understanding mandates the system operators of the two countries to analyse, develop and build the interconnection for commissioning by 2026. The aim is to promote regional electricity trade, improve the reliability of electricity systems and maintain the security of the interconnected networks across the Maghreb.

Morocco World News 14 February

 

Marriott to open resort in Marrakech

United Real Estate, a unit of Kuwait Projects, and Marriott International have agreed to open a resort near Marrakech. The St Regis Marrakech in central Morocco is set to open in 2024. Marriott has signed deals with partners to increase the number of its hotels in Africa to 50% by 2023.

Reuters 9 February

 

Egypt

Radisson add six hotels to portfolio

Belgium-based Radisson Hotel Group signed up six new hotels in Egypt as part of a portfolio deal across its numerous brands. The agreement was signed with existing business partner Zaghloul Holdings, a Cairo-based business conglomerate operating in various industries.

Egypt Business Directory 12 February