Weekly Africa Newsbriefs 10 July

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

    Leriba Africa Newsbrief

     

     Week commencing 10 June 2017

     

    oil-pump-jacks-1425456_1280

     

     

     

     

     

     

     

     

     

     

     

     

    Nigeria

    Schlumberger signs $700m oil fields deal

    The Nigerian National Petroleum Corporation and First Exploration & Production have signed an agreement with Schlumberger for the development of the Anyala and Madu fields, offshore Bayelsa State, Nigeria. The project, estimated at $700m, is based on a guaranteed project return. Under the agreement, Schlumberger will contribute the required services and capital for the project development. The joint project will leverage the technical expertise of Schlumberger and the extensive local knowledge its partners.

    The Guardian Nigeria 5 July

     

    Morocco

    World’s largest desalination plant to be built in Agadir

     BMCE Bank and Spanish tech company Abengoa have signed a deal with the Moroccan government to build a renewable energy desalination plant, estimated at $269m. The plant – tipped to be the largest of its kind – will be used for the supply of drinking water and irrigation. Abengoa will be responsible for building the plant, with the aim to ultimately secure the drinking water supply of the Grand Agadir region to provide water for agricultural irrigation.

    Morocco World News 1 July

     

    Tanzania

    Green light for major port upgrade

    The capacity of the Port of Dar es Salaam will increase to 25-million tonnes over the next seven years following the World Bank’s granting of a $345m credit and a $12m grant to the new Dar es Salaam Maritime Gateway Project. The investment will also reduce the waiting time to berth from 80 to 30 hours, as well as overall productivity of the port which plays a vital role in the economies of Tanzania and neighbouring countries.

    The New Times 4 July

     

    Kenya

    Abraaj’s Java House deal gives ECP full exit

    The Abraaj Group is acquiring Java House from private equity investor, Emerging Capital Partners (ECP), and the coffee chain’s founder, Kevin Ashley, in an undisclosed transaction. While financial terms of the deal were not disclosed, the Financial Times reports that ECP was looking for bids in the $100m range. Since acquiring a majority stake in the coffee chain in 2012, ECP has invested capital to help fund the firm’s East African expansion. During its three-year ownership, Java House expanded from 13 outlets in Nairobi to 60 outlets in Kenya, Rwanda and Uganda.

    Africa Capital Digest 3 July

     

    Ethiopia

    Kifya partners with Mastercard

    Mastercard and digital service provider Kifiya have teamed up to introduce a digital solution allowing Ethiopians, both inside and outside of the country, to pay utility bills, facilitated by Mastercard’s gateway services. During the second phase of the rollout, the firms will introduce micro insurance payments, educational expenses and international airtime to the platform.

    2Merkato.com 2 July

    This entry was posted in Leriba in the Media, Snapshots, Weekly newsbriefs. Bookmark the permalink.

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 10 July

Leriba in the Media
>>
Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 10 July

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

Leriba Africa Newsbrief

 

 Week commencing 10 June 2017

 

oil-pump-jacks-1425456_1280

 

 

 

 

 

 

 

 

 

 

 

 

Nigeria

Schlumberger signs $700m oil fields deal

The Nigerian National Petroleum Corporation and First Exploration & Production have signed an agreement with Schlumberger for the development of the Anyala and Madu fields, offshore Bayelsa State, Nigeria. The project, estimated at $700m, is based on a guaranteed project return. Under the agreement, Schlumberger will contribute the required services and capital for the project development. The joint project will leverage the technical expertise of Schlumberger and the extensive local knowledge its partners.

The Guardian Nigeria 5 July

 

Morocco

World’s largest desalination plant to be built in Agadir

 BMCE Bank and Spanish tech company Abengoa have signed a deal with the Moroccan government to build a renewable energy desalination plant, estimated at $269m. The plant – tipped to be the largest of its kind – will be used for the supply of drinking water and irrigation. Abengoa will be responsible for building the plant, with the aim to ultimately secure the drinking water supply of the Grand Agadir region to provide water for agricultural irrigation.

Morocco World News 1 July

 

Tanzania

Green light for major port upgrade

The capacity of the Port of Dar es Salaam will increase to 25-million tonnes over the next seven years following the World Bank’s granting of a $345m credit and a $12m grant to the new Dar es Salaam Maritime Gateway Project. The investment will also reduce the waiting time to berth from 80 to 30 hours, as well as overall productivity of the port which plays a vital role in the economies of Tanzania and neighbouring countries.

The New Times 4 July

 

Kenya

Abraaj’s Java House deal gives ECP full exit

The Abraaj Group is acquiring Java House from private equity investor, Emerging Capital Partners (ECP), and the coffee chain’s founder, Kevin Ashley, in an undisclosed transaction. While financial terms of the deal were not disclosed, the Financial Times reports that ECP was looking for bids in the $100m range. Since acquiring a majority stake in the coffee chain in 2012, ECP has invested capital to help fund the firm’s East African expansion. During its three-year ownership, Java House expanded from 13 outlets in Nairobi to 60 outlets in Kenya, Rwanda and Uganda.

Africa Capital Digest 3 July

 

Ethiopia

Kifya partners with Mastercard

Mastercard and digital service provider Kifiya have teamed up to introduce a digital solution allowing Ethiopians, both inside and outside of the country, to pay utility bills, facilitated by Mastercard’s gateway services. During the second phase of the rollout, the firms will introduce micro insurance payments, educational expenses and international airtime to the platform.

2Merkato.com 2 July