Weekly Africa Newsbriefs 12 February

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    Leriba Africa Newsbrief

     

     Week commencing 12 February 2018

     

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    Kenya

    Turner & Townsend takes over Mentor Management

    Turner & Townsend’s Kenyan business is set to merge with Nairobi-based project management firm Mentor Management. The global professional services firm acquired a majority stake in Mentor Management from growth markets investor Actis. The transaction is subject to regulatory approval. The new entity, MML Turner & Townsend, will operate across the real estate, infrastructure and natural resource industries. The merger will see MML Turner & Townsend become the largest independent project and programme management company in East Africa.

    Business Today 8 February

     

    Cayman Islands oil firm to build gas plant

    Midway Resources International (MRI) has been awarded a deal for the construction of a gas-fired power plant in Lamu. MRI’s local subsidiary, Zarara Oil & Gas, has appointed a consortium of American and Kenyan consultants to conduct a feasibility study to evaluate the project’s technical, financial and environmental aspects. The plant, which is expected to produce between 50MW and 200MW of electricity in its first phase, could be scaled up to 1,200MW if more gas resources are discovered.

    Daily Nation 7 February

     

    Morocco

    Gestamp to Invest in Moroccan Automotive

    Spanish multinational firm Gestamp, which specialises in the design, development and manufacture of technical metal components for the automotive industry, will be setting up its first plant in Morocco, and the first of its kind in Africa. The plant will be a joint venture with Moroccan vehicle equipment supplier, Tuyauto. The factory will be built in the Kenitra Atlantic Free Zone and is expected to create 120 jobs for locals.

    Morocco World News 8 February

     

    Egypt

    Dubai’s Al Khaleej in $1bn beet sugar mill deal

    Al Khaleej Sugar Refinery has agreed to build an agro-industrial complex to produce beet sugar under a deal signed with the Egyptian government. The mill, named Al Canal Sugar, is expected have a beet sugar production capacity of 750,000 tonnes during the beet season from February until June, with potential to go up to 900,000 tonnes. It will start production in mid-2020 with full capacity reached in February 2021.

    Ahram Online 4 February

     

    Uganda

    General Electric and Italy’s Saipem given nod on refinery tender

    US energy firm General Electric and Italy’s oil and gas contractor Saipem will be constructing the proposed Hoima district oil refinery after the two companies were cleared for the $4bn tender. The decision by cabinet was based on recommendations of Uganda National Oil executives and the need to balance foreign interests in the country’s oil sector. General Electric and Saipem have partnered with Intra-Continental Asset Holdings, a Mauritius-based private equity fund, and Washington investment firm Yaatra Ventures, for funding.

    Uganda Business News 8 February

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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 Newsbriefs 12 February

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Weekly newsbriefs

Weekly Africa Newsbriefs 12 February

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

Leriba Africa Newsbrief

 

 Week commencing 12 February 2018

 

conference-room-768441_1280

 

 

 

 

 

 

 

 

 

 

Kenya

Turner & Townsend takes over Mentor Management

Turner & Townsend’s Kenyan business is set to merge with Nairobi-based project management firm Mentor Management. The global professional services firm acquired a majority stake in Mentor Management from growth markets investor Actis. The transaction is subject to regulatory approval. The new entity, MML Turner & Townsend, will operate across the real estate, infrastructure and natural resource industries. The merger will see MML Turner & Townsend become the largest independent project and programme management company in East Africa.

Business Today 8 February

 

Cayman Islands oil firm to build gas plant

Midway Resources International (MRI) has been awarded a deal for the construction of a gas-fired power plant in Lamu. MRI’s local subsidiary, Zarara Oil & Gas, has appointed a consortium of American and Kenyan consultants to conduct a feasibility study to evaluate the project’s technical, financial and environmental aspects. The plant, which is expected to produce between 50MW and 200MW of electricity in its first phase, could be scaled up to 1,200MW if more gas resources are discovered.

Daily Nation 7 February

 

Morocco

Gestamp to Invest in Moroccan Automotive

Spanish multinational firm Gestamp, which specialises in the design, development and manufacture of technical metal components for the automotive industry, will be setting up its first plant in Morocco, and the first of its kind in Africa. The plant will be a joint venture with Moroccan vehicle equipment supplier, Tuyauto. The factory will be built in the Kenitra Atlantic Free Zone and is expected to create 120 jobs for locals.

Morocco World News 8 February

 

Egypt

Dubai’s Al Khaleej in $1bn beet sugar mill deal

Al Khaleej Sugar Refinery has agreed to build an agro-industrial complex to produce beet sugar under a deal signed with the Egyptian government. The mill, named Al Canal Sugar, is expected have a beet sugar production capacity of 750,000 tonnes during the beet season from February until June, with potential to go up to 900,000 tonnes. It will start production in mid-2020 with full capacity reached in February 2021.

Ahram Online 4 February

 

Uganda

General Electric and Italy’s Saipem given nod on refinery tender

US energy firm General Electric and Italy’s oil and gas contractor Saipem will be constructing the proposed Hoima district oil refinery after the two companies were cleared for the $4bn tender. The decision by cabinet was based on recommendations of Uganda National Oil executives and the need to balance foreign interests in the country’s oil sector. General Electric and Saipem have partnered with Intra-Continental Asset Holdings, a Mauritius-based private equity fund, and Washington investment firm Yaatra Ventures, for funding.

Uganda Business News 8 February