Weekly Africa Newsbriefs 20 May

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 20 May

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 20 May

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

Leriba Africa Newsbrief

 

Week commencing 20 May

 

car-3051027_960_720

 

 

 

 

 

 

 

 

 

Morocco

Peugeot to open $620m factory

French car company Peugeot will open a $620m factory in Kenitra, Morocco to produce smaller models such as the Peugeot 208. The company is aiming to produce 20,000 cars in 2019 and 100,000 next year, with a long-term production target of up to 200,000 cars annually.

Morocco Wold News 9 May

 

Uganda

Allianz X invests in SafeBoda

The digital investment unit of German financial services company Allianz Group, Allianz X, has invested an undisclosed amount in SafeBoda, an African ride hailing platform based in Kampala, Uganda.

Africa Global Funds 15 May

 

Kenya

KCB to complete National Bank acquisition

Kenya’s biggest lender by assets, KCB Group, expects to complete its acquisition of National Bank of Kenya (NBK) by October this year. KCB offered to buy National Bank through a share swap of one KCB share for every 10 of NBK, joining a wave of consolidation in Kenya’s banking industry.

Reuters 16 May

 

Pan Africa

Morocco, Rwanda sign nuclear energy deal

The Moroccan Agency for Nuclear and Radiological Safety and Security has signed a memorandum of understanding with the Rwanda Utilities Regulatory Authority. The agreement aims at furthering bilateral collaboration between the two companies in areas related to nuclear energy use and radiological safety.

Morocco World News 13 May

 

Microsoft launches development centre

US-based technology company Microsoft has launched its first Africa Development Centre (ADC) with two initial sites in Nairobi and Lagos. The ADC will cost $100m across its first five years of operation, serving as a centre of engineering and recruiting African talent.

The Guardian (Nigeria) 17 May

 

Egypt

World Bank Invests $50m in venture capital

The World Bank is investing $50m to develop an early-stage investment network in Egypt. The bank is expecting to invest the funds in privately managed risk capital intermediaries such as angel funds, accelerators, venture capital funds and investment firms.

Liquid Africa 14 May