Weekly Africa Newsbriefs 5 August

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 5 August

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Weekly Africa Newsbriefs 5 August

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Leriba Africa Newsbrief

 

Week commencing 5 August 

 

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Nigeria

First Aluminium Nigeria delists from NSE

The Nigerian Stock Exchange (NSE) has delisted the entire issued share capital of First Aluminium Nigeria following the company’s request for voluntary delisting. First Aluminium said it was delisting because neither it nor any shareholder had benefited from the listing over the past seven years.

Vanguard Nigeria 21 July

 

Zola Electric partners with OVH Energy

Zola Electric has announced a partnership with OVH Energy. Zola CEO Bill Leniham says the partnership plans to enable easier access to renewable energy products across Nigeria. Leniham expects the partnership to reach millions of Nigerian homes and businesses with its solar power solutions.

The Guardian Nigeria 31 July 

 

Kenya

ScanGroup to sell two subsidiaries

Marketing services firm ScanGroup is set to sell two subsidiaries for more than $23m in a deal that that was triggered by a related transaction involving its London-based parent, WPP Plc. WPP recently announced it would sell a 60% stake in its global data research firm, Kantor, to Boston-based private equity firm Vain Capital for $4bn.

Business Daily 31 July

 

Solarise Africa receives dual investment 

Energy Access Ventures, an investor in smart infrastructure in Africa and ElectriFI, a financial facility funded by the EU, has co-invested in Solarise Africa – a pan-African clean energy company.

Liquid Africa 31 July

 

Ghana

Woolworths shuts doors

Woolworths has closed two stores in Accra – the second time in six years that the South African-based retailer has exited an African market after it pulled out of Nigeria in November 2013.

Reuters 1 August