Weekly Africa Newsbrief 5 June

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 5 June

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Weekly Africa Newsbrief 5 June

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Leriba Africa Newsbrief

 

 

Week commencing 5 June 2017

 

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Côte d’Ivoire

Moroccan phosphate firm expanding to Abidjan

Phosphate group OCP will establish a fertilizer mixing and storage unit at the port of Abidjan. It plans to create a sub-regional hub from Côte d’Ivoire, both in terms of storage and logistics. OCP has already invested $4.2bn in four projects on the continent. The firm plans to build 15 more factories in countries including Senegal, Benin, Nigeria and Ghana.

Morocco World News 30 May

 

Egypt

Carlyle’s Africa Fund eyes commodity deals

International private equity firm Carlyle Group will spend between $30m and $100m on two unspecified commodity deals in Egypt, after a commodity rout depressed prices in the region. Egypt has abandoned its currency peg and increased fuel prices to secure international investments which include a $12bn International Monetary Fund loan programme.

Zambia Business Times 1 June

 

Electronic payments provider to invest $22m

Euronet aims to inject $22m worth of new ATMs into the Egyptian market by the end of 2018. The company is negotiating with a major bank, whose name it will not disclose until the agreement is complete, to operate the ATMs and the issuing of cards.

Daily News Egypt 2 June

 

Kenya

$68m funding for mineral mapping

China Eximbank has agreed to fund Kenya’s mapping of geological resources, if ongoing talks succeed. If China agrees to the request, a Chinese company will be contracted to do the exercise. Kenya presented a request for funding for $68m to carry out the exercise.

Standard Digital 29 May

 

Nigeria

Turkish firm launches $100m diaper and tissue factory

Hayat Kimya, a fast-moving consumer goods company, opened its diaper and tissue factory at the Agbara Industrial Layout. Hayat Kimya has 14 production sites globally. Nigeria is its first investment in sub-Saharan Africa. The manufacturing plant in will create 30,000 jobs.

The Guardian Nigeria 30 May