Weekly Africa Newsbriefs 12 June

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    Leriba Africa Newsbrief

     

     

    Week commencing 12 June 2017

     

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    Mozambique

     Infrastructure fund backs $76m solar farm

    The Emerging Africa Infrastructure Fund has signed a participation agreement with the International Finance Corporation to provide a $16.9m B Loan, with a 16-year term, to Central Solar de Mocuba in northern Mozambique. The fund will provide a further $7m viability gap funding grant for the project raised from the Private Infrastructure Development Group. The $76m plant forms a core element of the Mozambique government’s strategy of incentivising the creation of small and medium-sized businesses in the mainly rural Mocuba area.

    Club of Mozambique 7 June

     

    Ghana

    World Bank approves finance for road connectivity project

    The World Bank has approved a $150m International Development Association credit for Ghana’s Transport Sector Improvement Project. The project will improve regional connectivity, rehabilitate road links and improve access to agricultural value chains, while also linking smaller towns and rural settlements.

    BFT Online 9 June

     

    Kenya

    Oil dealer sells large stake to Omani firm

    Haas Petroleum has sold a 40% stake to Muscat-based Oman Trading International. The transaction, whose value was not disclosed, will help Haas expand in the region by opening more service stations and participating in capital-intensive open tender bulk import contracts. The proposed transaction is subject to approval by regulatory authorities.

    Daily Nation 6 June

     

    Nigeria

    MFS Africa partners with mobile fintech provider

    Pan-continental fintech company, MFS Africa, has partnered with Paga, a mobile money transfer provider, to connect its users and Nigerian bank account holders to senders from around the world. The deal allows customers with a Paga wallet to receive transfers users across Africa, or any money transfer operator connected to the MFS Hub. The partnership aims to enable Nigerians across the globe to send money back home and also pay directly for utility bills, goods and services in Nigeria.

    The Guardian Nigeria 7 June

     

    Angola

    Bank of China opens branch in Angola

    The bank of China has launched a new branch in Angola’s capital, Luanda. The presence of the institution will accelerate the internationalisation of the Angolan banking system and economy. The bank will serve Chinese enterprises in Angola while also supporting Angolan businesses.

    AfricaNews.com 7 June

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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 June

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 12 June

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

Leriba Africa Newsbrief

 

 

Week commencing 12 June 2017

 

construction-site-1646662_1280

 

 

 

 

 

 

 

 

 

 

Mozambique

 Infrastructure fund backs $76m solar farm

The Emerging Africa Infrastructure Fund has signed a participation agreement with the International Finance Corporation to provide a $16.9m B Loan, with a 16-year term, to Central Solar de Mocuba in northern Mozambique. The fund will provide a further $7m viability gap funding grant for the project raised from the Private Infrastructure Development Group. The $76m plant forms a core element of the Mozambique government’s strategy of incentivising the creation of small and medium-sized businesses in the mainly rural Mocuba area.

Club of Mozambique 7 June

 

Ghana

World Bank approves finance for road connectivity project

The World Bank has approved a $150m International Development Association credit for Ghana’s Transport Sector Improvement Project. The project will improve regional connectivity, rehabilitate road links and improve access to agricultural value chains, while also linking smaller towns and rural settlements.

BFT Online 9 June

 

Kenya

Oil dealer sells large stake to Omani firm

Haas Petroleum has sold a 40% stake to Muscat-based Oman Trading International. The transaction, whose value was not disclosed, will help Haas expand in the region by opening more service stations and participating in capital-intensive open tender bulk import contracts. The proposed transaction is subject to approval by regulatory authorities.

Daily Nation 6 June

 

Nigeria

MFS Africa partners with mobile fintech provider

Pan-continental fintech company, MFS Africa, has partnered with Paga, a mobile money transfer provider, to connect its users and Nigerian bank account holders to senders from around the world. The deal allows customers with a Paga wallet to receive transfers users across Africa, or any money transfer operator connected to the MFS Hub. The partnership aims to enable Nigerians across the globe to send money back home and also pay directly for utility bills, goods and services in Nigeria.

The Guardian Nigeria 7 June

 

Angola

Bank of China opens branch in Angola

The bank of China has launched a new branch in Angola’s capital, Luanda. The presence of the institution will accelerate the internationalisation of the Angolan banking system and economy. The bank will serve Chinese enterprises in Angola while also supporting Angolan businesses.

AfricaNews.com 7 June