Weekly Africa Newsbriefs 9 September

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 9 September

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Weekly newsbriefs

Weekly Africa Newsbriefs 9 September

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Leriba Africa Newsbrief

 Week commencing 9 September 

 6 September

 

 

 

 

 

 

 

 

 

Kenya

Engie acquires Mobisol

French power producer Engie has acquired Mobisol, a Berlin-based solar solutions firm whose regional operations are headquartered in Nairobi. The acquisition gives Engie a foothold in nine countries across Africa.

Business Daily 5 September

 

Choppies exits Kenyan market

Botswana-based retailer Choppies Supermarket is exiting the Kenyan market four years after acquiring Ukwala stores for $9.6m. Choppies has struggled to grow its market share in an increasingly competitive retail market. The retailer announced that it had listed its Kenyan assets for sale and had also classified 12 of its stores as distressed.

Business Daily 6 September

 

Kevian opens recycling plant  

Kevian Kenya, which produces Afia and Pick N’ Peel juice brands, has established a new $3.3m recycling plant in Thika to manufacture industrial materials. Kevian chairman Kimani Rugendo says the new venture is part of the firm’s expansion plans in an area that has been neglected by investors.

Business Daily 4 September

 

Namibia

Capricorn secures stake in Paratus

Capricorn Investment Group, owner of Bank Windhoek in Namibia, has acquired a 30% stake in pan-African telecoms group Paratus Africa Group. The investment is valued at $17m and is expected to broaden CIG’s reach into key sectors including banking, microfinance, insurance, asset management and telecoms.

Liquid Africa 4 September

 

Egypt

Pyramids opens new mall

Pyramids Developments has launched Paris East Mall, its latest commercial project in Egypt’s New Administrative Capital, following a $121.3m investment. The mall includes residential, commercial and entertainment facilities.

Daily News Egypt 3 September