Weekly Africa Newsbriefs 24 September

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    Leriba Africa Newsbrief

     

    Week commencing 24 September

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    Republic of Congo

    Haldor Topsoe develops $2.5bn fertiliser plant

    Danish chemical maker Haldor Topsoe will help the Republic of Congo build a $2.5bn fertiliser plant near the port city of Pointe Noire. The facility will help diversify Congo’s oil-dependent economy and the location of the plant will facilitate international exports.

    Liquid Africa 18 September

     

    Pan Africa

    Goldman Sachs leads $52m investment

    Goldman Sachs has led a $52m investment round in Jumo with participation from other leading investors. Jumo is a global technology company providing information services, financial infrastructure and products designed to reach the unbanked across the globe. Jumo has offices in Kenya, Uganda, Tanzania, Rwanda, Ghana, Zambia, Pakistan, the UK, Singapore and SA.

    Africa Global Funds 18 September

     

    Hughes in joint venture to expand internet access

    Global satellite operator Yahsat announced a joint venture with Hughes Network Systems (Hughes), a subsidiary of EchoStar Corporation. The venture will  provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia. Hughes will purchase a minority interest in the venture, which will provide unserved and underserved communities with internet services.

    The Guardian (Nigeria) 14 September

     

    East Africa

    Carlyle Group acquires stake in Abacus

    Global asset management company The Carlyle Group has completed the acquisition of a majority stake in AK Life Sciences (Abacus), a pharmaceutical company in East Africa, for an undisclosed amount. Abacus has an extensive distribution network with 30 wholesale branches across Uganda, Tanzania, Burundi, Rwanda and Kenya, many of which are in remote areas.

    Africa Global Funds 20 September

     

    Morocco

    Novares opens production plant

    French automotive plastic parts manufacturer Novares opened its first production plant in Kenitra, Morocco. The plant will produce engine components including air filters; acoustic covers; exterior car parts such as mudguards; and interior parts such as instrument panel components. The plant is the third the company has opened in a year after building new plants in Romania and Mexico.

    Morocco World News 19 September

     

    DMG secures partnership for large-scale wind farm

    Blockchain Soluna and DMG Blockchain Solutions have signed a partnership agreement to support Soluna’s large-scale wind farm in Morocco. Soluna plans to develop a 37,000-acre wind farm in Dakhla in southern Morocco. DMG will provide Soluna with hardware procurement, data centre design, mining setup, remote hardware and systems monitoring.

    Morocco World News 15 September

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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 September

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 24 September

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

Leriba Africa Newsbrief

 

Week commencing 24 September

 crop-1149914_960_720

 

 

 

 

 

 

 

 

Republic of Congo

Haldor Topsoe develops $2.5bn fertiliser plant

Danish chemical maker Haldor Topsoe will help the Republic of Congo build a $2.5bn fertiliser plant near the port city of Pointe Noire. The facility will help diversify Congo’s oil-dependent economy and the location of the plant will facilitate international exports.

Liquid Africa 18 September

 

Pan Africa

Goldman Sachs leads $52m investment

Goldman Sachs has led a $52m investment round in Jumo with participation from other leading investors. Jumo is a global technology company providing information services, financial infrastructure and products designed to reach the unbanked across the globe. Jumo has offices in Kenya, Uganda, Tanzania, Rwanda, Ghana, Zambia, Pakistan, the UK, Singapore and SA.

Africa Global Funds 18 September

 

Hughes in joint venture to expand internet access

Global satellite operator Yahsat announced a joint venture with Hughes Network Systems (Hughes), a subsidiary of EchoStar Corporation. The venture will  provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia. Hughes will purchase a minority interest in the venture, which will provide unserved and underserved communities with internet services.

The Guardian (Nigeria) 14 September

 

East Africa

Carlyle Group acquires stake in Abacus

Global asset management company The Carlyle Group has completed the acquisition of a majority stake in AK Life Sciences (Abacus), a pharmaceutical company in East Africa, for an undisclosed amount. Abacus has an extensive distribution network with 30 wholesale branches across Uganda, Tanzania, Burundi, Rwanda and Kenya, many of which are in remote areas.

Africa Global Funds 20 September

 

Morocco

Novares opens production plant

French automotive plastic parts manufacturer Novares opened its first production plant in Kenitra, Morocco. The plant will produce engine components including air filters; acoustic covers; exterior car parts such as mudguards; and interior parts such as instrument panel components. The plant is the third the company has opened in a year after building new plants in Romania and Mexico.

Morocco World News 19 September

 

DMG secures partnership for large-scale wind farm

Blockchain Soluna and DMG Blockchain Solutions have signed a partnership agreement to support Soluna’s large-scale wind farm in Morocco. Soluna plans to develop a 37,000-acre wind farm in Dakhla in southern Morocco. DMG will provide Soluna with hardware procurement, data centre design, mining setup, remote hardware and systems monitoring.

Morocco World News 15 September