Weekly Africa Newsbriefs 19 November

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 November

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 19 November

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

Leriba Africa Newsbrief

 

Week commencing 19 November

 

railway-tracks-3455169_960_720

 

 

 

 

 

 

 

 

 

 

Nigeria

Transnet secures rail concession from General Electric

US multinational conglomerate General Electric is handing over a Nigerian railway concession to South African state-owned rail company Transnet in line with its strategy to exit the transportation business. Agreements with the Nigerian government are being negotiated by Transnet and its consortium partners.

Bloomberg 14 November

 

Tanzania

Vodacom Tanzania approves 26% share sale

Vodacom Tanzania shareholders have approved the sale of a 26% stake owned by Mirambo Holdings to South Africa’s Vodacom Group. Vodacom is Tanzania’s leading telecoms company and controls 32% of the country’s 40-million mobile subscribers.

Reuters 15 November

 

Egypt

Indorama Ventures acquires 74% stake in Medco Plast

Thai petrochemicals producer Indorama Ventures has completed the acquisition of 74% of the share capital of Egyptian recyclable PET preforms firm, Medco Plast for Packing and Packaging Systems, for $47m. The acquisition will provide Indorama Ventures exposure to the East African PET packaging market. PET is a chemical used in the manufacturing of plastic.

Forbes Middle East 14 November

 

South Africa

Philip Morris in African drive

Philip Morris International will open a flagship store in Johannesburg as it tries to stoke demand in Africa for its alternative cigarette known as iQOS, which heats rather than burns tobacco to give users their nicotine kick. The Marlboro maker plans to use the shop as a springboard to expand in the rest of the continent.

Bloomberg  15 November

 

Morocco

Royal Air Maroc signs code-share agreement

National airlines Royal Air Maroc and Spain’s Iberia Airlines have signed a code-sharing agreement for the Casablanca-Madrid flight. The agreement allows both companies to increase their flight schedule between the two cities.

Morocco World News 14 November