Weekly Africa Newsbriefs 3 June

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 3 June

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Weekly Africa Newsbriefs 3 June

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Leriba Africa Newsbrief

 

Week commencing 3 June

 

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Pan Africa

US trust invests $1.85bn in Eaton Tower

US real estate investment and trust company American Tower has agreed to buy UK-based pan African tower company Eaton Tower for $1.85bn, including debt. It is one of the few international providers of telecommunications infrastructure in the fast-growing African market.

Financial Times 30 May

 

Tanzania

DOB Equity invests in Zanrec

Dutch family-backed impact investor DOB Equity has invested in Zanzibar waste collection company Zanrec for an undisclosed amount. The investment will expand the company’s growth and enable it to widen its range of commercial solutions in waste collection, recycling and awareness.

Liquid Africa 29 May

 

Egypt

EuroAfrica interconnect deal signed

The construction and commissioning of the EuroAfrica interconnector, which will interconnect the electricity networks of Egypt and Cyprus, was officially signed this week. The agreement provides for the development of an electricity interconnection with the use of subsea high voltage cables. The signed agreement follows the conclusion of viability studies conducted by EuroAfrica.

Egypt Business Directory 24 May

 

Guinea

$40m boost for ports, infrastructure

The Emerging Africa Infrastructure Fund has lent the Guinea Alumina Corporation $40m over 14 years as part of a $750m debt package being led by the International Finance Corporation. The majority of the capital will be used to finance port and marine facilities, the railway and associated infrastructure.

Africa Global Funds 30 May

 

Ethiopia

MTN eyes market entry

South African-based telecommunications company MTN identified Ethiopia as a market into which it wants to expand. Ethiopian Prime Minister Abiy Ahmed said last year he is looking to bring in private investors to the country’s telecommunications sector for the first time.

Bloomberg 30 May