Weekly Africa Newsbriefs 26 November

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 26 November

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Weekly Africa Newsbriefs 26 November

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Leriba Africa Newsbrief

 

Week commencing 26 November

 

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Morocco

Future bids for undersea electricity cable

Morocco and Portugal will invite bids to build an undersea electricity cable linking the two countries once technical and financial feasibility studies are completed. The project aims to be operational before 2030 and is estimated to cost €600-€700m.

Reuters 19 November

 

Kenya

Opic invests in CrossBoundary Energy

US-based private capital firm the Overseas Private Investment Corporation (Opic) has injected $5m into Nairobi-based commercial solar installation ventures company CrossBoundary Energy. The funding will enable CrossBoundary Energy to implement solar power at six business sites in Kenya, Rwanda and Ghana, producing a total of 5.75MW.

Liquid Africa 22 November

 

AfDB approves $267.7m loan for country’s biggest dam

The African Development Bank (AfDB) is lending Kenya an extra $267.7m to complete construction of the country’s biggest dam. The first phase is scheduled to finish in December 2022 and supply water to the semi-arid county and surrounding regions. It will also be used for hydropower and irrigation.

Bloomberg 21 November

 

Metito secures funding for desalination plant

Kenyan-based investment firm Centum has signed a $3.2m deal with Dubai water management solutions firm Metito for a seawater desalination plant at its proposed $3.2m housing project in Kilifi county. The proposed facility, one of the biggest private undertakings in the region, will have a daily water production capacity of 3,000m³.

Business Daily 22 November

 

Ghana

$1.5bn loan to develop cocoa sector

China National Complete Engineering Corporation has agreed, in a memorandum of understanding (MoU), to issue loans worth $1.5bn to the Ghana Cocoa Board to develop the cocoa sector in Ghana, the world’s second-biggest producer. The programme aims to improve farmers’ yields and encourage the local processing of beans.

Bloomberg 22 November