Weekly Africa Newsbriefs 25 February

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    Leriba Africa Newsbrief

     

    Week commencing 25 February

     

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    Ethiopia

    Hyundai opens assembly plant

    South Korean car manufacturer Hyundai Motor has opened a 10,000-a-year vehicle capacity assembly plant in Addis Ababa, its first factory in East Africa. The plant is big enough to assemble for Kenya, Ethiopia, Somalia, Djibouti, Eritrea and Sudan.

    Reuters 22 February

     

    Egypt

    Bank Audi eyes Greek bank’s branches

    Bank Audi Egypt has begun due diligence on buying the National Bank of Greece’s branches in Egypt. The due diligence will be completed by the end of February. The website of National Bank of Greece’s Egyptian unit lists 18 branches in the country.

    Egypt Business Directory 21 February

     

    Aramco signs storage deal

    Saudi Arabian refined products trader and shipping operator Aramco Trading Company has signed a deal with Egypt’s Arab Petroleum Pipeline Company (Sumed) to provide 222,000m³ of gas oil storage facilities. The companies also signed a second deal to supply fuel oil storage capacity of 165,000m³ in the Red Sea port of Ain Sokhna.

    Egypt Business Directory 18 February

     

    Tanzania

    Finnfund invests €2.5m in Africado

    Finnfund, a Finnish development finance company, has provided a €2.5m secured loan to Africado, a Tanzanian avocado producer. Africado was established in 2007 as Tanzania’s first commercial and international grade producer of avocados. The company farms 137 hectares around the Kilimanjaro area.

    Africa Global Funds 18 February

     

    Kenya

    Airtel, Telkom announce joint venture

    Indian-owned Bharti Airtel and Telkom Kenya announced a deal to operate under a joint venture company that will be named Airtel-Telkom. Kenya’s second- and third-largest mobile phone operators are merging to create a stronger challenger to the market leader, Safaricom. The two entities will continue to run independently but will combine efforts to enhance their range of products, marketing services and offerings.

    The New Times 14 February

     

    Sub-Saharan Africa

    Opic provides financing to SunFunder fund

    The Overseas Private Investment Corporation (Opic) has provided initial financing to SunFunder’s $85m Solar Energy Transformation Fund. The fund supports businesses providing solar solutions to people in sub-Saharan Africa and India who lack access to electricity.

    Liquid Africa 21 February

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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 25 February

Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 25 February

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

Leriba Africa Newsbrief

 

Week commencing 25 February

 

car-1852923_960_720

 

 

 

 

 

 

 

 

 

 

Ethiopia

Hyundai opens assembly plant

South Korean car manufacturer Hyundai Motor has opened a 10,000-a-year vehicle capacity assembly plant in Addis Ababa, its first factory in East Africa. The plant is big enough to assemble for Kenya, Ethiopia, Somalia, Djibouti, Eritrea and Sudan.

Reuters 22 February

 

Egypt

Bank Audi eyes Greek bank’s branches

Bank Audi Egypt has begun due diligence on buying the National Bank of Greece’s branches in Egypt. The due diligence will be completed by the end of February. The website of National Bank of Greece’s Egyptian unit lists 18 branches in the country.

Egypt Business Directory 21 February

 

Aramco signs storage deal

Saudi Arabian refined products trader and shipping operator Aramco Trading Company has signed a deal with Egypt’s Arab Petroleum Pipeline Company (Sumed) to provide 222,000m³ of gas oil storage facilities. The companies also signed a second deal to supply fuel oil storage capacity of 165,000m³ in the Red Sea port of Ain Sokhna.

Egypt Business Directory 18 February

 

Tanzania

Finnfund invests €2.5m in Africado

Finnfund, a Finnish development finance company, has provided a €2.5m secured loan to Africado, a Tanzanian avocado producer. Africado was established in 2007 as Tanzania’s first commercial and international grade producer of avocados. The company farms 137 hectares around the Kilimanjaro area.

Africa Global Funds 18 February

 

Kenya

Airtel, Telkom announce joint venture

Indian-owned Bharti Airtel and Telkom Kenya announced a deal to operate under a joint venture company that will be named Airtel-Telkom. Kenya’s second- and third-largest mobile phone operators are merging to create a stronger challenger to the market leader, Safaricom. The two entities will continue to run independently but will combine efforts to enhance their range of products, marketing services and offerings.

The New Times 14 February

 

Sub-Saharan Africa

Opic provides financing to SunFunder fund

The Overseas Private Investment Corporation (Opic) has provided initial financing to SunFunder’s $85m Solar Energy Transformation Fund. The fund supports businesses providing solar solutions to people in sub-Saharan Africa and India who lack access to electricity.

Liquid Africa 21 February