Africa Newsbriefs 27 March

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    Leriba Africa Newsbrief

     

     Week commencing 27 March 2017

     

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    Kenya

    Diamond Trust Bank to acquire Habib

    Diamond Trust Bank (DTB) is set to acquire Habib Bank for $17.5m. It will use its own shares to compensate owners of the small lender. Habib investors, who already own 11.97% of DTB, have been offered a 4.75% interest in the Nairobi Securities Exchange-listed firm as consideration for the buyout. They will be allotted 13.2-million shares in DTB at a price of $1.33.

    Daily Nation 21 March

     

    Sub-Saharan Africa

    World Bank Group announces record financing deal

    World Bank Group President Jim Yong Kim has announced $57bn in financing for sub-Saharan African countries over the next three years. The bulk of the financing – $45bn – will come from the International Development Association, the World Bank Group’s fund for the poorest countries.

    World Bank 19 March

     

    Nigeria

    AXA, ACA, IFC in $82m healthcare deal

    African Capital Alliance and the International Finance Corporation (IFC), the World Bank’s development finance institution, are backing a greenfield hospital development in Lagos sponsored by AXA Mansard Insurance. Half of the development will be funded in equity and the other 50% in debt. African Capital Alliance will provide 40% of the equity via its CAPE IV fund, with AXA Mansard furnishing 20% of the equity.

    Liquid Africa 20 March

     

    Malawi

    CDC and AgDevCo in Malawian agriculture deal

    CDC, the UK’s development finance institution, and AgDevCo, a social impact investor targeting sub-Saharan Africa, have invested $11.5m in Jacoma Estates Group to expand its Malawian farming operations. The new financing will help Jacoma expand its farming operations at its Tropha Estates in Northern Malawi, where it produces macadamia nuts, chilli and paprika.

    Africa Global Funds 15 March

     

    Pan Africa

    Proparco invests in Oasis Africa Fund

    Oasis Africa Fund, which is looking to raise $50m to invest in small and medium-sized businesses in Côte d’Ivoire and Ghana, has received a $7m commitment from Proparco, the French development finance institution. It’s expected that the fund will make combined equity and debt investments, with individual transactions ranging from $500,000 up to $5m in size.

    Africa Capital Digest 19 March

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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 
       
       

Africa Newsbriefs 27 March

Snapshots
>>
Weekly newsbriefs

Africa Newsbriefs 27 March

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

Leriba Africa Newsbrief

 

 Week commencing 27 March 2017

 

 building-244265_1280

 

 

 

 

 

 

 

 

 

 

Kenya

Diamond Trust Bank to acquire Habib

Diamond Trust Bank (DTB) is set to acquire Habib Bank for $17.5m. It will use its own shares to compensate owners of the small lender. Habib investors, who already own 11.97% of DTB, have been offered a 4.75% interest in the Nairobi Securities Exchange-listed firm as consideration for the buyout. They will be allotted 13.2-million shares in DTB at a price of $1.33.

Daily Nation 21 March

 

Sub-Saharan Africa

World Bank Group announces record financing deal

World Bank Group President Jim Yong Kim has announced $57bn in financing for sub-Saharan African countries over the next three years. The bulk of the financing – $45bn – will come from the International Development Association, the World Bank Group’s fund for the poorest countries.

World Bank 19 March

 

Nigeria

AXA, ACA, IFC in $82m healthcare deal

African Capital Alliance and the International Finance Corporation (IFC), the World Bank’s development finance institution, are backing a greenfield hospital development in Lagos sponsored by AXA Mansard Insurance. Half of the development will be funded in equity and the other 50% in debt. African Capital Alliance will provide 40% of the equity via its CAPE IV fund, with AXA Mansard furnishing 20% of the equity.

Liquid Africa 20 March

 

Malawi

CDC and AgDevCo in Malawian agriculture deal

CDC, the UK’s development finance institution, and AgDevCo, a social impact investor targeting sub-Saharan Africa, have invested $11.5m in Jacoma Estates Group to expand its Malawian farming operations. The new financing will help Jacoma expand its farming operations at its Tropha Estates in Northern Malawi, where it produces macadamia nuts, chilli and paprika.

Africa Global Funds 15 March

 

Pan Africa

Proparco invests in Oasis Africa Fund

Oasis Africa Fund, which is looking to raise $50m to invest in small and medium-sized businesses in Côte d’Ivoire and Ghana, has received a $7m commitment from Proparco, the French development finance institution. It’s expected that the fund will make combined equity and debt investments, with individual transactions ranging from $500,000 up to $5m in size.

Africa Capital Digest 19 March