Weekly Africa Newsbriefs 30 September

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    Leriba Africa Newsbrief

     Week commencing 30 September 

     

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    Zambia

    FinnFund invests $6m in Yalelo

    Finnish impact investor FinnFund has made its first direct investment in Zambia with a $6m commitment to aquaculture company Yalelo. FinnFund focuses on sustainable investment opportunities in developing countries. Yalelo plans on using the capital to double its annual production of tilapia fish from 12,000 tonnes to 25,000 tonnes.

    Liquid Africa 23 September

     

    Egypt

    MaxAB secures $6.2m seed funding

    MaxAB, an Egyptian business-to-business e-commerce start-up, has secured $6.2m in seed funding in one of the largest seed rounds raised by a start-up in the Middle East-North Africa region. MaxAB, which connects informal food and grocery retailers with suppliers via an app, aims to reach 50% of Egypt’s population within two years. The funding round was co-led by Beco Capital, 4DX Ventures and Endure Capital.

    Daily News Egypt 27 September

     

    $12,3m financing agreement for park

    The Abu Dhabi Islamic Bank-Egypt and Ora Developers Egypt, a member of Gemini Holding, have signed a $12,3m financing agreement for the development of the Sheikh Zayed Central Park. The transformed park will have sports complexes, restaurants and other facilities for residents.

    Daily News Egypt 24 September

     

    Kenya

    App to better Kenyan cargo handling

    Tia+, an Estonia-based logistics start-up, has launched its online business in Kenya enabling truck drivers to connect directly and in real time with cargo shippers. Tia+ reckons the app will address logistical challenges in the sector by enhancing trust and transparency in cargo handling.

    Daily Nation 26 September

     

    Ghana

    Niche Confectionary receives investment

    Entrepreneurial development bank FMO has provided an $8.7m loan to Niche Confectionary, which supports local cocoa processing in Ghana. Ghana produces the world’s highest quality bulk cocoa and is responsible for 20% of the world’s cocoa harvest. Niche will purchase manufacturing equipment with the loan which it uses to produce chocolate spreads, chocolate milk and chocolate bars.

    Africa Global Funds 24 September

     

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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 30 September

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 30 September

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

Leriba Africa Newsbrief

 Week commencing 30 September 

 

fisherman-209112_960_720

 

 

 

 

 

 

 

 

 

Zambia

FinnFund invests $6m in Yalelo

Finnish impact investor FinnFund has made its first direct investment in Zambia with a $6m commitment to aquaculture company Yalelo. FinnFund focuses on sustainable investment opportunities in developing countries. Yalelo plans on using the capital to double its annual production of tilapia fish from 12,000 tonnes to 25,000 tonnes.

Liquid Africa 23 September

 

Egypt

MaxAB secures $6.2m seed funding

MaxAB, an Egyptian business-to-business e-commerce start-up, has secured $6.2m in seed funding in one of the largest seed rounds raised by a start-up in the Middle East-North Africa region. MaxAB, which connects informal food and grocery retailers with suppliers via an app, aims to reach 50% of Egypt’s population within two years. The funding round was co-led by Beco Capital, 4DX Ventures and Endure Capital.

Daily News Egypt 27 September

 

$12,3m financing agreement for park

The Abu Dhabi Islamic Bank-Egypt and Ora Developers Egypt, a member of Gemini Holding, have signed a $12,3m financing agreement for the development of the Sheikh Zayed Central Park. The transformed park will have sports complexes, restaurants and other facilities for residents.

Daily News Egypt 24 September

 

Kenya

App to better Kenyan cargo handling

Tia+, an Estonia-based logistics start-up, has launched its online business in Kenya enabling truck drivers to connect directly and in real time with cargo shippers. Tia+ reckons the app will address logistical challenges in the sector by enhancing trust and transparency in cargo handling.

Daily Nation 26 September

 

Ghana

Niche Confectionary receives investment

Entrepreneurial development bank FMO has provided an $8.7m loan to Niche Confectionary, which supports local cocoa processing in Ghana. Ghana produces the world’s highest quality bulk cocoa and is responsible for 20% of the world’s cocoa harvest. Niche will purchase manufacturing equipment with the loan which it uses to produce chocolate spreads, chocolate milk and chocolate bars.

Africa Global Funds 24 September