Weekly Africa Newsbriefs 29 April

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    Leriba Africa Newsbrief

     

    Week commencing 29 April

     

     

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    Nigeria

    Olam submits $361m Dangote bid for former Tiger business

    Singapore-based food and agri-business Olam International has submitted a $361m binding offer to acquire 100% of Nigerian flour and pasta manufacturer Dangote Flour Mills. Aliko Dangote, Africa’s richest man, bought the business back from Tiger Brands for a nominal $1 in 2015.

    Business Day 24 April

     

    Morocco

    BMW secures cobalt deal

    German car manufacturer BMW will start buying its cobalt, an essential component for electric vehicle batteries, from Australian and Moroccan mines. BMW will use the new cobalt supply in its next generation of electric vehicles in 2020. Morocco is the 12th-biggest cobalt-exporting country because of its Bou-Azzer mine.

    Reuters 24 April

     

    Magna to build $11.3m car mirror facility

    Canadian vehicle parts supplier Magna has begun construction work on a $11.3m car mirrors facility in Morocco. The plant is set to supply international vehicle manufacturers with interior and exterior mirror systems. Production will start next year.

    Morocco World News  24 April

     

    ABL launches in Casablanca

    Irish-based commercial aircraft leasing company ABL Leasing has launched in Casablanca, making it Africa’s first aircraft leaser. ABL’s services include sourcing and remarketing of aircraft, leasing, aircraft technical management and debt sourcing and restructuring.

    Morocco World News 25 April

     

    Pan Africa

    African Rainbow buys majority stake in QED

    African Rainbow Capital has acquired a majority shareholding in QED, the largest independent actuarial advisory business in Africa, for an undisclosed amount. QED is headquartered in South Africa with regional offices in Kenya, Nigeria and Mauritius and it operates across 17 countries in Africa. African Rainbow will not assume operational control, despite the majority shareholding.

    Africa Global Funds 25 April

     

    Accor plans African expansion

    French multinational hospitality company Accor will open 60 new hotels in 14 countries in Africa in the next four years with more than half of them in Egypt. Other key markets in Accor’s growth plan include Nigeria, Ethiopia and South Africa, where it will open 10, seven and three hotels respectively by 2020. Accor has 143 hotels in Africa, 63 of them south of the Sahara.

    Bloomberg 24 April

     

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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 29 April

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 29 April

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

Leriba Africa Newsbrief

 

Week commencing 29 April

 

 

 flour-1528338_960_720

 

 

 

 

 

 

 

Nigeria

Olam submits $361m Dangote bid for former Tiger business

Singapore-based food and agri-business Olam International has submitted a $361m binding offer to acquire 100% of Nigerian flour and pasta manufacturer Dangote Flour Mills. Aliko Dangote, Africa’s richest man, bought the business back from Tiger Brands for a nominal $1 in 2015.

Business Day 24 April

 

Morocco

BMW secures cobalt deal

German car manufacturer BMW will start buying its cobalt, an essential component for electric vehicle batteries, from Australian and Moroccan mines. BMW will use the new cobalt supply in its next generation of electric vehicles in 2020. Morocco is the 12th-biggest cobalt-exporting country because of its Bou-Azzer mine.

Reuters 24 April

 

Magna to build $11.3m car mirror facility

Canadian vehicle parts supplier Magna has begun construction work on a $11.3m car mirrors facility in Morocco. The plant is set to supply international vehicle manufacturers with interior and exterior mirror systems. Production will start next year.

Morocco World News  24 April

 

ABL launches in Casablanca

Irish-based commercial aircraft leasing company ABL Leasing has launched in Casablanca, making it Africa’s first aircraft leaser. ABL’s services include sourcing and remarketing of aircraft, leasing, aircraft technical management and debt sourcing and restructuring.

Morocco World News 25 April

 

Pan Africa

African Rainbow buys majority stake in QED

African Rainbow Capital has acquired a majority shareholding in QED, the largest independent actuarial advisory business in Africa, for an undisclosed amount. QED is headquartered in South Africa with regional offices in Kenya, Nigeria and Mauritius and it operates across 17 countries in Africa. African Rainbow will not assume operational control, despite the majority shareholding.

Africa Global Funds 25 April

 

Accor plans African expansion

French multinational hospitality company Accor will open 60 new hotels in 14 countries in Africa in the next four years with more than half of them in Egypt. Other key markets in Accor’s growth plan include Nigeria, Ethiopia and South Africa, where it will open 10, seven and three hotels respectively by 2020. Accor has 143 hotels in Africa, 63 of them south of the Sahara.

Bloomberg 24 April