Weekly Africa Newsbriefs 24 June

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 24 June

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Weekly newsbriefs

Weekly Africa Newsbriefs 24 June

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Leriba Africa Newsbrief

 

Week commencing 24 June

 

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Southern Africa

GE, Power Construction win $4bn hydro contract

US-based conglomerate General Electric and Chinese power company Power Construction have been contracted to build a $4bn hydropower project on the Zambian and Zimbabwean border. The cost includes amounts for civil works, construction and power turbines.

Bloomberg 20 June

 

Ethiopia

Equity Bank expands reach

Kenyan national bank Equity Bank has set up a commercial office in Addis Ababa following its entry into Zambia and Mozambique. The expansion comes after a preliminary agreement with Atlas Mara for controlling equity stakes in four banks operating in Rwanda, Tanzania, Zambia and Mozambique.

New Times 18 June

 

Morocco

Exol bids for ailing SAMIR

British oil company Exol Lubricants Morocco has placed a bid to acquire SAMIR, the bankrupt Moroccan oil refinery that is suddenly finding suitors again. Other contenders include Swiss-British mining company Glencore and Swiss commodity company Trafigura.

Morocco World News 13 June

 

Morocco signs aviation deals with France

Morocco and France have signed two deals to boost co-operation on civil aviation-related technical assistance and quality management. The deals entail aviation security, with the two countries agreeing to upgrade technical cooperation in air security, air management, quality and air safety-related services.

Morocco World News 19 June

 

Pan Africa

AFDB launches digital facility for financial inclusion

The African Development Bank alongside donor partners has launched the Africa Digital Financial Inclusion Facility, a financing facility designed to accelerate digital financial inclusion across Africa.  The facility has received committed funding of $40m from three initial donors: the Bill and Melinda Gates Foundation, the Government of Luxembourg and the French Development Agency.

Africa Global Funds 13 June