Weekly Africa Newsbriefs 7 October

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 7 October

Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 7 October

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

Leriba Africa Newsbrief

 Week commencing 7 October  

 

shopping-1165437_960_720

 

 

 

 

 

 

 

 

 

Côte d’Ivoire

Amethis sells CDCI minority stake

Amethis has sold its minority stake in Compagnie de Distribution Côte d’Ivoire (CDCI) to Groupe Retail Holding, a Moroccan group which holds several modern distribution franchises. CDCI is the second-largest food retailer in Côte d’Ivoire with 150 stores.

Liquid Africa 2 October

 

Rwanda

Boost for solar installations

Rwanda’s energy ambitions have been boosted by the endorsement of a financial instrument by the Global Innovation Lab for Climate Finance that will accelerate the deployment of solar home systems. Rwanda aims to connect 300,000 households annually to off-grid energy solutions by 2024.

The New Times 4 October

 

Morocco

14 Morocco-France flight routes announced

The Moroccan National Trust Office is launching 14 additional flight routes between various cities in Morocco and France.  This adds to the 24 routes established between the two countries earlier this year.

Morocco World News 1 October

 

Kenya

Green bond raises funds for student accommodation

Acorn Project, a property developer and manager, has raised $41m from Kenya’s first green bond offering, falling short of the targeted $50m. The funds will be used for the construction of student accommodation in Nairobi. Acorn established 10 special purpose limited liability partnerships to acquire and hold properties and other assets for the project.

Liquid Africa 3 October

 

Egypt

Bavaria expands its production line

Bavaria Fire Fighting Solutions intends to add two additional production lines to its plant with a total investment of $2,1m in 2019.  Bavaria’s new investment aims to finance expansion as well as increase the company’s production capacity.

Daily News Egypt 4 October