Weekly Africa Newsbriefs 8 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 
       
       

Weekly Africa Newsbriefs 8 April

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Weekly newsbriefs

Weekly Africa Newsbriefs 8 April

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Leriba Africa Newsbrief

 

Week commencing 8 April

 

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Kenya

MPharma to buy pharmacy chain

Ghanaian start-up MPharma is buying Kenya’s second-largest pharmacy chain, Haltons. MPharma will take control of the 20 Haltons stores split between Nairobi and Mombasa. It has raised $9.7m and the full round of funding is expected to be completed in a couple of weeks with other investors.

Liquid Africa 1 April

 

Carrefour to expand into five countries

French retailer Carrefour plans to boost its presence in Kenya as it looks to expand into eastern and southern Africa. Carrefour plans to enter as many as five markets in the next four years. Growing the franchise in Africa will increase competition for the likes of Shoprite and Massmart.

Bloomberg 2 April

 

Jambojet increases fleet size

Kenyan budget airline Jambojet will be leasing four more aircraft this year, boosting its fleet in readiness for the launch of new routes in at least four destinations. The airline is building on its success in Uganda where it launched a daily flight last year to expand to other countries in the region.

Business Daily 2 April

 

Rwanda

Nigerian billionaire eyes Rwandan investment

Nigerian business mogul Abdoul Samad Rabiu is assessing the Rwandan mining sector for viable opportunities. There are multiple investment opportunities in the Rwandan mining sector with investments ranging from $15m to $120m.

The New Times 2 April

 

Nigeria

Nampak sells Nigerian unit to AR Packaging

SA-based packaging company Nampak has sold its Nigerian paper packaging to privately-held Swedish cigarette packaging group AR Packaging  for an undisclosed amount. Nampak has retained its aluminium and tin canning products and services in Nigeria

Reuters 3 April

 

Naspers sells OLX to Jiji

South African internet and media group has sold its OLX business in Ghana, Kenya, Tanzania and Uganda to Jiji, which operates the largest classifieds marketplace in Nigeria.

Liquid Africa 3 April

 

Partech invests in Kudi

Global tech investment firm Partech has invested in Kudi, a Nigerian digital payment and collections firm. Existing investors Khosla Ventures and YC also participated in the investment. In Nigeria 80% of the population works informally and is paid in cash.

Africa Global Funds 4 April