Weekly Africa Newsbriefs 8 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 8 October

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Weekly Africa Newsbriefs 8 October

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Leriba Africa Newsbrief

 

Week commencing 8 October

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Kenya

Marriot signs franchise agreement with Sankara

US luxury hospitality group Marriott International has signed a franchise agreement with Nairobi’s five-star hotel, the Sankara Nairobi. The Sankara hotel will trade as a Marriott brand from early next year. Marriott operates two hotels in Nairobi and the group is planning to launch the Radisson Hotel Group in Kenya.

Business Daily 4 October

 

Pan Africa

LeapFrog Investments invests in health care group 

US company LeapFrog Investments has invested an undisclosed amount in Pyramid Group, the largest specialty distributor for cardiac and orthopaedic equipment in East Africa. Pyramid’s products are distributed in countries across Africa including Tanzania, Kenya, Uganda, Rwanda, Mozambique, Ethiopia, Nigeria and Ghana.

Liquid Africa 1 October

 

Sub-Saharan Africa

Mauritian bank secures $150m credit facility

The Mauritius Commercial Bank (MCB) has secured a $150m credit facility from French finance company Proparco and German Investment Corporation subsidiary DEG. It will be used to to finance long-term corporate and infrastructure projects in Mauritius and sub-Saharan Africa.

Africa Global Funds 4 October

 

Kenya

$40m loan for I&M’s SME portfolio 

The Dutch Development Bank has approved a loan of $40m to I&M Bank Kenya to boost lending to small and medium-sized enterprises in the country. The bank has a loan portfolio of $1.2bn of which almost 30% consists of loans to SME clients. 

Africa Global Funds 3 October

 

Morocco

Private equity boost for irrigation company

Pan African private equity firm Development Partners International (DPI) has made an investment in Moroccan irrigation systems and solutions business, Compagnie Marocaine de Goutte à goutte et de Pompage (CMGP). DPI made the investment through its African Development Partners II fund, which recently acquired a majority stake in CMGP for $100m.

African Private Equity and Venture Capital Association  20 September