Weekly Africa Newsbriefs 11 December

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 11 December

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Weekly Africa Newsbriefs 11 December

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Leriba Africa Newsbrief

 

 Week commencing 11 December 2017

 

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Zimbabwe

Vivo Energy to gain controlling stake in Engen

Netherlands-based Vivo Energy Holdings is set to acquire a controlling stake in Engen through a share swap deal targeting operations in Zimbabwe and several countries in southern Africa. The deal is subject to regulatory approval. Other countries included in the transaction are DR Congo, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania, Malawi and Kenya. It will bring Vivo’s presence on the continent to more than 2,100 service stations across 24 African markets.

The Source 4 December

 

Nigeria

Tecno to acquire phone vendor Micro-Station

Chinese Tecno Mobile manufacturer Transsion Holdings will pay $5m to buy Ikeja-based mobile phone chain store Micro-Station. The acquisition is aimed at strengthening and expanding Transsion’s mobile phone retail arm, 3C Hub. Following the acquisition, Micro-Station will be merged with Transsion’s 3C Hub and all Micro-Station stores are likely be converted to 3C Hub stores.

Liquid Africa 6 December

 

Cameroon

Sika launches a factory to produce concrete additives

Sika, a Swiss chemicals company, has opened a production unit in Cameroon. The new unit forms part of the firm’s expansion plan in Africa and will eliminate the need to import its products from subsidiaries abroad before selling them to local construction firms.

Business in Cameroon 5 December

 

Uganda

Global tax firm signs deal to tap into local market

Global law company Andersen Global has announced an expansion into the Ugandan market by signing a collaboration agreement with Ligomarc Advocates, a local financial, corporate tax and legal firm. Ligomarc will become Andersen Global’s local partner. 

Daily Monitor 7 December

 

Egypt

Total to add nine gas stations

French petroleum manufacturer Total will launch nine gas stations in 2018. The projects will be launched in Cairo, Alexandria and the Delta region as part of the company’s expansion strategy into the Upper Egypt and Delta regions to reach more areas in villages and highways. In addition, the company plans to invest in the fields of refining, distribution, exploration and solar energy in the next three years.

Daily News Egypt 6 December