Weekly Africa Newsbriefs 22 July

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 22 July

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Weekly newsbriefs

Weekly Africa Newsbriefs 22 July

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Leriba Africa Newsbrief

 

Week commencing 22 July

 

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Egypt

Investec buys Spinneys

International specialist banking and asset management group Investec, via its pan-African private equity fund, has bought a controlling stake in supermarket chain Spinneys Egypt. Spinneys has expanded to a footprint of 13 outlets – two hypermarkets and 11 supermarkets – including two new openings in the last eight months.

Liquid Africa 15 July

 

Tanzania

EXEO secures minority shareholding

Pan African investment company EXEO Capital Fund, through its Agri-Vie Fund II, has concluded a transaction with PPHL for a minority shareholding. PPHL produces woven polymer-based extruded products.

African Private Equity and Venture Capital Association  16 July

 

CBEA leads $5.5m investment

CrossBoundary Energy Access (CBEA), Africa’s first project financing facility for mini power grids, has announcing its first transaction to finance $5.5m for 60 mini-grids in Tanzania in partnership with PowerGen Renewable Energy.

African Private Equity and Venture Capital Association  17 July

 

Kenya

AHL leads investment in Cropnuts

East African investment company AHL Venture Partners will be acting as lead investor in Crop Nutrition Laboratory Services (Cropnuts). Dutch investment group DOB Equity is another investor. Cropnuts provides centralised laboratory testing (soil, water, plant and food safety) and other services.

Liquid Africa 18 July

 

Nigeria

InsuResilience acquires 39.25% stake in Royal Exchange

Luxembourg-based InsuResilience Investment Fund has agreed to acquire a 39.25% stake in Royal Exchange General Insurance Company, one of the largest non-life insurance companies in Nigeria. Through its activities, the company is expected to reach more than 1-million farmers by 2025.

Africa Global Funds 18 July