Weekly Africa Newsbrief 15 May

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 Newsbrief 15 May

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Weekly Africa Newsbrief 15 May

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Leriba Africa Newsbrief

 

 

Week commencing 15 May 2017

 

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Angola

Government to build telecoms hub in Luanda

 

An Angolan government agency is to spend $19.5m to build a telecoms technology hub in Luanda. UTIP, the government’s private investment technical unit, signed the contract with internet service provider, Angola Comunicações e Sistemas (ACS). The new unit will be used to provide private communications network systems, dedicated data transmission circuits and broadband connectivity solutions to corporate or business customers nationwide.

Global Telecoms Business 9 May

 

Kenya

Dutch equity firm invests in warehousing company

DOB Equity has paid $3,9m for an undisclosed stake in Nairobi-based warehouse developer Africa Logistics Properties Holdings (ALP). The investment will improve ALP’s capacity to offer one-stop warehousing and distribution solutions to multinationals keen on expanding operations across East Africa.

Business Daily Africa 11 May

 

Swiss firm to buy Kenyan forwarder of fresh produce

Logistics company Panalpina is set to acquire Air Connection, a forwarder specialising in the export of flowers and vegetables to multiple destinations including the Netherlands and the UK. The family-owned Air Connection is Kenya’s fourth largest forwarder in terms of air freight export volumes. The merged company will handle around 70,000 tonnes of perishables yearly.

Business Daily Africa 10 May

 

Uganda

International telecoms provider to acquire Datanet

BringCom, which provides connectivity solutions to developing countries, has reached a tentative agreement to acquire Datanet.Com. Datanet is a network service provider operating in Uganda and Kenya. BringCom’s investment will increase Datanet’s ability to competitively service the stringent requirements of some of its customers with challenging telecommunications applications.

Liquid Africa 10 May

 

Rwanda

Satellite communications firm launches smart city project

Inmarsat has partnered with Actility to deploy LoRaWAN infrastructure around the city of Kigali. LoRaWAN – or long range wide area network – is a low-powered, wide area network solution seen as a key development in the internet of things. The Actility solution will make up part of a project to turn the Rwandan capital city into a smart city, and will operate initially for a year. Potential applications include transport, utilities, health and education solutions.

Global Telecoms Business 11 May