Africa Newsbriefs 3 April

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 3 April

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Africa Newsbriefs 3 April

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Leriba Africa Newsbrief

 

 

Week commencing 3 April 2017

 

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Cameroon

LafargeHolcim invests $47m in cement factory

LafargeHolcim Maroc Afrique is extending its activities to the Cameroon with a $47m investment, through its subsidiary, construction and public works company, Cimencam. The cement producer will construct of a new plant with a capacity of 500,000 tonnes. The facility will enable Cimencam to reach an overall volume of 2-million tons per year.

Morocco World News 28 March

 

Morocco

China’s Wanbao acquires stake in Managem-owned Lamikal

After 10 years of exploration in the Democratic Republic of Congo, Managem has sold a 61.2% stake in Lamikal to Beijing-based Wanbao for $56m. Lamikal is the company operating the Kalukundi mining site.

Morocco World New 30 March

 

Tanzania

Total acquires East African oil producer

French oil producer Total Outre Mer closed a $400m deal to acquire a controlling stake in East African oil manufacturer Gulf African Petroleum. The acquisition will strengthen Total’s logistics in the region and accelerate growth in its retail network. 

The Citizen (Tanzania) 30 March

 

Nigeria

Sterling’s non-interest unit gets liquidity boost

The non-interest banking unit of Sterling Bank got a $15m facility from the Islamic Corporation for the Development of the Private Sector, a multilateral development financial institution. The fund is to provide liquidity to finance additional public projects.

The Guardian (Nigeria) 29 March

 

Kenya

Equity, HFC get loan for SME lending

The European Investment Bank has extended a $97m loan to two local banks for financing small and medium-sized enterprises in the region. The European Investment Bank signed an $80m loan with Equity Group Holdings earmarked for three subsidiaries and another with HFC at $21m.

Daily Nation 29 March