Weekly Africa Newsbriefs 9 October

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    Leriba Africa Newsbrief

     

     Week commencing 9 October 2017

     

     

    coca-cola-462776_1280 

     

     

     

     

     

     

     

     

     

     

    Pan Africa

    Coca-Cola Africa acquires AB Inbev’s 54.5% equity stake 

    The world’s largest brewer, Anheuser-Busch InBev (AB InBev) has completed the transition of its 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for $3.15bn after customary adjustments. This comes after AB InBev acquired SABMiller for $104bn last year, and reached an agreement to transition its equity stake in CCBA to Coca-Cola. The deal includes entities in African states, which account for about 40% of all Coca-Cola beverage volumes in Africa.

     Corporate Digest 5 October

     

    Uganda

    FMO underwrites $39m in renewable energy projects

    Dutch development bank FMO has underwritten $39m in senior debt for the financing of the 16MW and 6MW Nyamagasani hydropower projects. The new hydropower plants will generate clean, low-carbon, sustainable electricity to about 161,722 people. Both projects are majority owned by funds managed by Frontier Energy, a Danish private equity fund manager that is developing a portfolio of renewable energy plants in eastern Africa.

    Africa Global Funds 2 October

     

    Sub-Saharan Africa

    CDC backs Africa Capitalworks with $40m

    CDC Group, the UK’s development finance institution, has invested $40m in Africa Capitalworks. The investment will enable Africa Capitalworks provide permanent equity capital to growing mid-market companies and grow the businesses over the long term.

    Africa Global Funds 5 October

     

    Egypt

    responsAbility takes stake in fintech leader

    Private eqyity firm, responsAbility has invested in mobile payments platform, Fawry. The fintech company aims to use the investment to accelerate the expansion of cashless payments and financial inclusion by leveraging its mobile platform and distribution network. This will enable the firm to provide financial services for sections of the population that have so far been underserved – at costs that will allow the model to be commercially sustainable, while furthering the spread of cashless transactions.

    responAbility 3 October

     

    Tanzania

    Hyatt expansion plan focus shifts to Arusha

    Hyatt Hotels and Resorts is targeting to open a new hotel in Arusha in 2019 as part of the chain’s expansion in Africa. The American multinational owner of hotels, resorts, and vacation properties is aiming to open six new hotels in Africa by 2020. The developments are expected to see the Hyatt brand enter four new countries on the continent, creating more than 2,100 new jobs once opened.

    The Citizen Tanzania 4 October

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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 October

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Weekly newsbriefs

Weekly Africa Newsbriefs 9 October

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

Leriba Africa Newsbrief

 

 Week commencing 9 October 2017

 

 

coca-cola-462776_1280 

 

 

 

 

 

 

 

 

 

 

Pan Africa

Coca-Cola Africa acquires AB Inbev’s 54.5% equity stake 

The world’s largest brewer, Anheuser-Busch InBev (AB InBev) has completed the transition of its 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for $3.15bn after customary adjustments. This comes after AB InBev acquired SABMiller for $104bn last year, and reached an agreement to transition its equity stake in CCBA to Coca-Cola. The deal includes entities in African states, which account for about 40% of all Coca-Cola beverage volumes in Africa.

 Corporate Digest 5 October

 

Uganda

FMO underwrites $39m in renewable energy projects

Dutch development bank FMO has underwritten $39m in senior debt for the financing of the 16MW and 6MW Nyamagasani hydropower projects. The new hydropower plants will generate clean, low-carbon, sustainable electricity to about 161,722 people. Both projects are majority owned by funds managed by Frontier Energy, a Danish private equity fund manager that is developing a portfolio of renewable energy plants in eastern Africa.

Africa Global Funds 2 October

 

Sub-Saharan Africa

CDC backs Africa Capitalworks with $40m

CDC Group, the UK’s development finance institution, has invested $40m in Africa Capitalworks. The investment will enable Africa Capitalworks provide permanent equity capital to growing mid-market companies and grow the businesses over the long term.

Africa Global Funds 5 October

 

Egypt

responsAbility takes stake in fintech leader

Private eqyity firm, responsAbility has invested in mobile payments platform, Fawry. The fintech company aims to use the investment to accelerate the expansion of cashless payments and financial inclusion by leveraging its mobile platform and distribution network. This will enable the firm to provide financial services for sections of the population that have so far been underserved – at costs that will allow the model to be commercially sustainable, while furthering the spread of cashless transactions.

responAbility 3 October

 

Tanzania

Hyatt expansion plan focus shifts to Arusha

Hyatt Hotels and Resorts is targeting to open a new hotel in Arusha in 2019 as part of the chain’s expansion in Africa. The American multinational owner of hotels, resorts, and vacation properties is aiming to open six new hotels in Africa by 2020. The developments are expected to see the Hyatt brand enter four new countries on the continent, creating more than 2,100 new jobs once opened.

The Citizen Tanzania 4 October