Weekly Africa Newsbrief 22 May

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    Leriba Africa Newsbrief

     

     

    Week commencing 22 May 2017

    mulher-mocambicana-2252465_1280 

     

     

     

     

     

     

     

     

     

     

    Kenya

    Vodafone to buy $2.8bn Safaricom stake

    Vodafone Group Plc’s South Africa unit agreed to buy a 35% shareholding in Safaricom, giving the UK wireless operator majority control of Kenya’s biggest company. The stake is owned by the Kenyan government and its value based on Safaricom’s share price.

    Bloomberg 14 May

     

    West Africa

    Synergy invests in Dimension Data

    Synergy Capital Managers has completed its 10th investment in Dimension Data Nigeria and Dimension Data Ghana through the acquisition of the Nigerian and Ghanaian subsidiaries of the ICT solutions firm. The companies will trade under a new name, Cloud Exchange Ltd, and roll out virtual computing services with local points of presence across Côte d’Ivoire, Ghana, Liberia, Nigeria, and Sierra Leone.

    AVCA 17 May

     

    Equinox to invest in bio-gas power project

    Britain’s Equinox Energy Capital is close to concluding a $250m fundraising round to invest in a project in western Kenya to produce electricity from invasive lake weed water hyacinth. Water hyacinth has choked off large parts of Lake Victoria and has alarmed environmentalists with its spread over the past two decades. The project will be developed in phases and will have an annual capacity to produce 35 megawatts when completed. The first phase will be located in the western county of Homa Bay and have 8MW of capacity.

    Reuters 12 May

     

    Malawi

    Bushiri Investments partners with Google

    Investment firm, Shepherd Bushiri Investments (SBI) has entered into a partnership with Google. The tech giant, which is bolstering its presence in emerging markets, is said to have identified SBI as a potential strategic partner due to its reach and influence. The exact details of the partnership have not yet been revealed.

    Nyasa Times 14 May

     

    Senegal

    I&P-backed funds invest in delivery operator

    Two funds backed by Investisseurs & Partenaires’ impact fund of funds have made investments in Senegal and Burkina Faso. Teranga Capital is investing €300,000 in equity in OuiCarry in exchange for an undisclosed stake. Sinergi Burkhina is investing €257,000 in AgroServ, a processor of corn. Of the total invested, €120,000 is being invested as equity but the size of the stake remains undisclosed.

    Africa Capital Digest 14 May

     

    Pan Africa

    Convergence, Google, IFC and Mitsui back CSquared

    Convergence Partners, the Africa-focused private equity ICT investor, the IFC, Mitsui & Co and Google are teaming up to invest up to $100m in CSquared, a broadband infrastructure company building wholesale metro fibre optic networks on the continent. CSquared has already laid over 800km of fibre in Kampala and Entebbe and more than 840km of fibre in the Ghanaian cities of Accra, Tema and Kumasi.

    Africa Capital Digest 14 May

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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 Newsbrief 22 May

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Weekly Africa Newsbrief 22 May

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

Leriba Africa Newsbrief

 

 

Week commencing 22 May 2017

mulher-mocambicana-2252465_1280 

 

 

 

 

 

 

 

 

 

 

Kenya

Vodafone to buy $2.8bn Safaricom stake

Vodafone Group Plc’s South Africa unit agreed to buy a 35% shareholding in Safaricom, giving the UK wireless operator majority control of Kenya’s biggest company. The stake is owned by the Kenyan government and its value based on Safaricom’s share price.

Bloomberg 14 May

 

West Africa

Synergy invests in Dimension Data

Synergy Capital Managers has completed its 10th investment in Dimension Data Nigeria and Dimension Data Ghana through the acquisition of the Nigerian and Ghanaian subsidiaries of the ICT solutions firm. The companies will trade under a new name, Cloud Exchange Ltd, and roll out virtual computing services with local points of presence across Côte d’Ivoire, Ghana, Liberia, Nigeria, and Sierra Leone.

AVCA 17 May

 

Equinox to invest in bio-gas power project

Britain’s Equinox Energy Capital is close to concluding a $250m fundraising round to invest in a project in western Kenya to produce electricity from invasive lake weed water hyacinth. Water hyacinth has choked off large parts of Lake Victoria and has alarmed environmentalists with its spread over the past two decades. The project will be developed in phases and will have an annual capacity to produce 35 megawatts when completed. The first phase will be located in the western county of Homa Bay and have 8MW of capacity.

Reuters 12 May

 

Malawi

Bushiri Investments partners with Google

Investment firm, Shepherd Bushiri Investments (SBI) has entered into a partnership with Google. The tech giant, which is bolstering its presence in emerging markets, is said to have identified SBI as a potential strategic partner due to its reach and influence. The exact details of the partnership have not yet been revealed.

Nyasa Times 14 May

 

Senegal

I&P-backed funds invest in delivery operator

Two funds backed by Investisseurs & Partenaires’ impact fund of funds have made investments in Senegal and Burkina Faso. Teranga Capital is investing €300,000 in equity in OuiCarry in exchange for an undisclosed stake. Sinergi Burkhina is investing €257,000 in AgroServ, a processor of corn. Of the total invested, €120,000 is being invested as equity but the size of the stake remains undisclosed.

Africa Capital Digest 14 May

 

Pan Africa

Convergence, Google, IFC and Mitsui back CSquared

Convergence Partners, the Africa-focused private equity ICT investor, the IFC, Mitsui & Co and Google are teaming up to invest up to $100m in CSquared, a broadband infrastructure company building wholesale metro fibre optic networks on the continent. CSquared has already laid over 800km of fibre in Kampala and Entebbe and more than 840km of fibre in the Ghanaian cities of Accra, Tema and Kumasi.

Africa Capital Digest 14 May