Weekly Africa Newsbriefs 27 May

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 27 May

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Weekly Africa Newsbriefs 27 May

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Leriba Africa Newsbrief

 

Week commencing 27 May

 

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Egypt

BP sells GUPCO stake

British multinational BP is nearing the sale of its stake in a major Egyptian oil and gas company, Gulf of Suez Petroleum Company (GUPCO), to Dubai-based Dragon Oil for more than $600m. The sale will mark the end of BP’s 50-year-old partnership in GUPCO as it focuses on developing Egypt’s large offshore gas reserves.

Reuters 23 May

 

Tanzania

Barrick places $787m offer for Acacia  

Canadian-based gold mining company Barrick Gold has submitted an offer to buy the balance of Acacia Mining shares for $787m. Barrick already owns 63.9% of the London-listed Acacia and proposed to buy out minority shareholders as part of efforts to resolve a 2017 tax dispute with the Tanzanian government.

Reuters 24 May

 

Rwanda

Rise Fund invests in drone medical supplier

African investment firm The Rise Fund has invested an undisclosed amount in drone medical supplies company, Zipline. Established in 2016, Zipline enables health workers to place orders by text message and receive their deliveries in 30 minutes on average.

Liquid Africa 24 May

 

AfricInvest supports artificial intelligence start up

Tunisia-based financial services company AfricInvest has invested $7m in InstaDeep, an artificial intelligence (AI) startup, with participation from New York-based co-investment fund, Endeavor Catalyst. The funding supports the development of a scalable product platform aimed at empowering enterprises with better decision-making using AI.

Africa Global Funds 24 May

 

Pan Africa

CarePay raises $45m expansion capital

Dutch-African health payments firm CarePay has raised $45m growth capital in its financing round to expand beyond Kenya into Tanzania and Nigeria. The CarePay platform digitally connects health payers such as insurers, beneficiaries and healthcare providers on to one mobile platform, to transact and communicate with each other in real-time.

Liquid Africa 20 May