Africa Newsbriefs 20 March

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 
       
       

Africa Newsbriefs 20 March

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Africa Newsbriefs 20 March

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Leriba Africa Newsbrief

 

 Week commencing 20 March 2017

 

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Nigeria

Investors plan $1.9bn fund for Delta Steel resuscitation

Investors in the moribund Delta Steel Company, Ovwian-Aladja, now Premium Steel and Mines Ltd, have said the resuscitation of the complex would cost around $1.9bn. Investors from the US and Morocco recently carried out assessment of the facilities and said the $1.9bn would be used for equipment, renovations and other upgrades.

The Guardian 14 March

 

Sahel Capital backs Crest Agro in undisclosed deal

Making its fourth investment on behalf of the Fund for Agriculture Finance in Nigeria, Sahel Capital is teaming up with CardinalStone Capital Advisers to acquire an undisclosed stake in Crest Agro Products, an integrated cassava processor. The capital will be used to support the establishment of the company’s starch processing facility as well as help expand its farming activities.

Africa Capita Digest 12 March

 

Kenya

Investor consortium backs Africa Logistics Properties with $48m

The Commonwealth Development Corporation (CDC), the International Finance Corporation (IFC), Maris Capital and Mbuyu Capital Partners are jointly investing about $48m in Africa Logistic Properties, a newly established developer and manager of Grade A warehousing operating from Nairobi.

Liquid Africa 13 March

 

Senegal

ADFD invests into Senegal’s road development

The Abu Dhabi Fund for Development (ADFD) has allocated a concessionary loan of $14.44m in Senegal’s National Road No. 2 project, which runs along the valley of the Senegal River.

Africa Global Funds 15 March

 

Tanzania

Italian firm eyes car market in Tanzania

 CMC Commercial Limited has been named a dealer and importer of IVECO vehicles in the country. The company has been authorised to offering the Italian brand within the medium, heavy and bus vehicle segments. CMC Commercial Ltd also offers preowned IVECO vehicles through the OK truck brand, approved by IVECO and certified division.

Daily News 16 March