Weekly Africa Newsbriefs 4 February

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 4 February

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Weekly newsbriefs

Weekly Africa Newsbriefs 4 February

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Leriba Africa Newsbrief

 

Week commencing 4 February

 

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Kenya

Mega bank merger

Commercial Bank of Africa and NIC Group have agreed to combine their operations to create Kenya’s third-largest lender in the biggest banking tie-up in at least a decade. Privately-held CBA will get 53% of the merged entity while NIC Group will hold the balance. The merged bank will have a combined asset base of $4.1bn in Kenya alone and 9% of all loans in the country.

Bloomberg 31 January

 

Ramco Plexus acquires 73.6% stake in Sintel

Indian print and packaging firm Ramco Plexus has acquired 73.6% of the issued share capital of Kenyan scratch-card company Sintel Security Print Solutions. Sintel clients include telecommunications firms such as Safaricom, Airtel and Telkom.

Liquid Africa 30 January

 

Glovo expands operations

Spanish online delivery company Glovo has launched operations in Nairobi. Its application enables customers to order items such as food, groceries or gifts from their smartphones. It’s the latest smartphone-centred business to launch in Kenya after taxi hailing apps such as Uber and Taxify.

Daily Nation 30 January

 

Tunisia

Gulf Capital invests $22m in CHO

UAE-based alternative asset management firm Gulf Capital has invested $22m in Tunisian-based CHO Company. Founded in 1996, CHO manages one of the world’s largest farm-to-fork operations using sustainable farming methods.

Liquid Africa 28 January

 

Morocco

CEPSA plans expansion

Spanish multinational oil and gas company CEPSA wants to expand its presence in Morocco and Mexico. CEPSA has a storage facility and a licence for the operation of 10 service stations in Morocco which are managed by joint venture partner Afriquia. The company wants to have 30 stations by 2020.

Morocco World News 27 January