Weekly Africa Newsbriefs 2 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 2 October

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Weekly Africa Newsbriefs 2 October

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Leriba Africa Newsbrief

 

 Week commencing 2 October 2017

 

 

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Morocco

Italian company to build automotive plant

Fiat subsidiary Magneti Marelli has signed an agreement totalling $46.76m with Morocco for the establishment of an automotive production plant in Tangier. Production will begin in 2019 and the plant will create about 500 jobs by 2025.

Morocco World News 26 September

 

Ghana

$50m dairy and beef factory to be established

The Sekyere East District Assembly has secured a partnership agreement with N-D Eco Ltd to set up a multipurpose factory to produce dairy, beef, leather and related products, under the government’s flagship “one district, one factory” initiative. The project is expected to be complete within eight months and create more than 1,000 jobs locally.

Peace FM Online 25 September

 

Burkina Faso

Amethis acquires private hospital group

Amethis’ healthcare platform Novamed has acquired Polyclinique Internationale de Ouagadougou (PCIO), one of the largest private hospitals in Burkina Faso. The acquisition is part Novamed’s expansion strategy into west and central Africa. The acquisition will allow PCIO to reinforce its technical facilities in order to improve cardiological expertise and attract the best doctors while growing its number of patients. 

Africa Global Funds 28 September

 

Cameroon

Casino to invest $36m to establish new stores

French mass retailer Casino group intends to build between 10 and 15 stores which will create an estimated 1,000 directs jobs across Cameroon. Casino also intends investing in the agricultural sector in the western, coastal and north-western regions.

Business in Cameroon 29 September

 

Egypt

Vallourec to supply tubular solutions

French engineering firm Vallourec has signed a contract with Shell subsidiary, Badr El Din Petroleum Company, to supply tubular solutions for up to 70 gas wells in the western desert of Egypt. The value of the contact has not been disclosed.

Daily News Egypt 26 September

 

Kenya

Private equity firm acquires stake in Britam

AfricInvest has invested $55m for a 14.3% stake in financial services firm Britam Holdings. The transaction, subject to regulatory and shareholder approval, values Britam at $0,15/ share.

 

The Star Kenya 27 September