Weekly Africa Newsbrief 29 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 29 May

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Weekly Africa Newsbrief 29 May

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Leriba Africa Newsbrief

 

 

Week commencing 29 May 2017

 

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Ethiopia

Chinese group clinches convention centre contract

CGCOC Group, a Chinese construction firm, has concluded a contract with Addis Ababa International Convention and Exhibition Centre for the construction of the first phase of its new centre at a cost of $1.1bn. The entire centre is to be built in two phases at a total cost of $2.7bn.

2merkato.com 24 May

 

Kenya

Distell purchase of Centum stake approved

The Competition Authority of Kenya has approved the buyout of Centum’s 26.43% stake in the state-owned Kenya Wine Agencies by South Africa distiller, Distell. The deal, estimated at $9.7m, means foreign firms now own 52.43% of Kenya Wine Agencies.

Daily Nation 23 May

 

Uganda

Uganda gets $168m for agriculture development

Uganda has been allocated $168m by the International Fund for Agriculture Development (IFAD) for rural transformation through agriculture. The allocation is aimed at enabling rural farmers to access long-term loans. IFAD has 45 projects in 22 countries in the region with the total portfolio of $1.7bn.

Daily Monitor 24 May

 

Cameroon

British Aggreko to install 10MW of thermal power

Eneo, the public service company in the electricity sector that is owned by British investment fund Actis, has signed a contract with independent power producer Aggreko to install a thermal plant in the northern town of Maroua. The plant will help in reducing the energy deficit in three northern regions of Cameroon.

Business in Cameroon 20 May

 

Zanzibar

New Ritz-Carlton to open in 2021

Marriot International has signed an agreement with British firm Pennyroyal Gibraltar to develop the Ritz-Carlton brand in the Zanzibar archipelago. Slated to open in 2021, the 90-room all-suite and villa resort will be located 45 minutes from Zanzibar International Airport.

Daily News Tanzania  23 May

 

Rwanda

Exim Bank of India commits $81m to training system

The government of Rwanda and India Export-Import Bank have signed a financing agreement worth $81m to support the establishment of an integrated technical and vocational educational and training system. The agreement will help accelerate government efforts to improve the quality of technical education.

The New Times 25 May