Weekly Africa Newsbriefs 19 August

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 19 August

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 19 August

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

Leriba Africa Newsbrief

 

Week commencing 19 August 

 

 sand-768783_960_720

 

 

 

 

 

 

 

 

 

Nigeria

Sundry Foods to expand after Norfund investment

Integrated food services company Sundry Foods will use a new investment from the Norwegian Investment Fund for Developing Countries (Norfund) to increase its footprint in underserved regions and expand its product offering. Sundry Foods operates in the quick-service restaurant, bakery and catering sectors.

AVCA 15 August

 

Kenya

Green bond approved

Kenya’s Capital Markets Authority has approved the first green bond to be issued by investors Acorn Group and Helios to raise $48,4m for the construction of over 3,800 university hostel units in Nairobi.

Daily Nation 15 August

 

Telecom sells properties

Telkom Kenya plans to sell $36,7 worth of properties spread across Kenya as the company seeks to raise capital for its upcoming merger with Airtel. The telecom company has hired Axis Real estate, a property dealing firm, to help sell the prime property assets sitting on about 17.8 acres of land.

Business Daily 15 August

 

Morocco

Yokogawa Group to launch subsidiary  

Japanese industrial instrumentation and maintenance company Yokogawa Group intends to launch a subsidiary in Casablanca. Yokogawa Group has annual turnover of $3.8bn and has 18,300 employees through 100 subsidiaries including 17 production sites worldwide.

Morocco World News 14 August

 

Cote d’Ivoire

AgDevCo invests in DekelOil

Social impact investor AgDevCo has announced a $9,6m investment into DekelOil, a leading agribusiness operating in the palm oil and cashew sectors in West Africa, which places smallholder farmers at the centre of its operations.

Liquid Africa 12 August