Weekly Africa Newsbriefs 25 March

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    Leriba Africa Newsbrief

     

    Week commencing 25 March

     

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    Nigeria

    Shell signs $200m finance agreement

    Shell’s Nigerian unit Royal Dutch Shell has signed a $200m deal with the United Bank of Africa to aid its local vendors and suppliers access project finance. Shell is Nigeria’s largest oil producer pumping an average of 631,000 barrels a day in 2017.

    Bloomberg 24 March

     

    Chad

    Millicom sells Chad business

    International telecommunications and media company Millicom has signed an agreement for the sale of its subsidiary Tigo Chad to Maroc Telecom for an undisclosed amount. The sale of Tigo Chad is in line with Millicom’s stated objective of increasing its focus on Latin America.

    Liquid Africa 15 March

     

    Egypt

    El Nasr and Nissan collaborate

    Egyptian state-owned car manufacturer El Nasr Automotive Manufacturing and Japan’s Nissan have reached an initial agreement to produce 100,000 cars a year in Egypt. The agreement is part of efforts to boost the proportion of locally made auto components in cars assembled in Egypt with a view to export the majority of the vehicles.

    Egypt Business Directory 20 March

     

    Kenya

    Transnet in talks for Lamu port

    South African logistics company Transnet is in talks with Kenya to operate a seaport in Lamu that Kenya is developing to partly use for oil exports. Transnet is pitching to provide the equipment for three of the 32 docks planned at Lamu port and to operate the facility.

    Bloomberg 25 March

     

    KQ and Alitalia enter code share

    Kenyan Airways has entered into a code share partnership with Italian airline Alitalia to offer more travel options at their hubs in Nairobi and Rome. The move is aimed at enhancing connectivity between Africa and Rome.

    Daily Nation 19 March

     

    Shoprite rolls out expansion plans

    South African-listed retailer Shoprite has launched its second store at Garden City Mall in Nairobi. Shoprite has employed 120 workers for the store and has plans to roll out two more outlets by the end of the year.  The future branches are planned for Karen Waterfront Mall in Nairobi and Nyali City in Mombasa

    Business Daily 21 March

     

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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 March

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 25 March

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

Leriba Africa Newsbrief

 

Week commencing 25 March

 

 bank-2907728_960_720

 

 

 

 

 

 

 

 

 

 

 

 

Nigeria

Shell signs $200m finance agreement

Shell’s Nigerian unit Royal Dutch Shell has signed a $200m deal with the United Bank of Africa to aid its local vendors and suppliers access project finance. Shell is Nigeria’s largest oil producer pumping an average of 631,000 barrels a day in 2017.

Bloomberg 24 March

 

Chad

Millicom sells Chad business

International telecommunications and media company Millicom has signed an agreement for the sale of its subsidiary Tigo Chad to Maroc Telecom for an undisclosed amount. The sale of Tigo Chad is in line with Millicom’s stated objective of increasing its focus on Latin America.

Liquid Africa 15 March

 

Egypt

El Nasr and Nissan collaborate

Egyptian state-owned car manufacturer El Nasr Automotive Manufacturing and Japan’s Nissan have reached an initial agreement to produce 100,000 cars a year in Egypt. The agreement is part of efforts to boost the proportion of locally made auto components in cars assembled in Egypt with a view to export the majority of the vehicles.

Egypt Business Directory 20 March

 

Kenya

Transnet in talks for Lamu port

South African logistics company Transnet is in talks with Kenya to operate a seaport in Lamu that Kenya is developing to partly use for oil exports. Transnet is pitching to provide the equipment for three of the 32 docks planned at Lamu port and to operate the facility.

Bloomberg 25 March

 

KQ and Alitalia enter code share

Kenyan Airways has entered into a code share partnership with Italian airline Alitalia to offer more travel options at their hubs in Nairobi and Rome. The move is aimed at enhancing connectivity between Africa and Rome.

Daily Nation 19 March

 

Shoprite rolls out expansion plans

South African-listed retailer Shoprite has launched its second store at Garden City Mall in Nairobi. Shoprite has employed 120 workers for the store and has plans to roll out two more outlets by the end of the year.  The future branches are planned for Karen Waterfront Mall in Nairobi and Nyali City in Mombasa

Business Daily 21 March