Weekly Africa Newsbriefs 12 March

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    Leriba Africa Newsbrief

     

     Week commencing 12 March 2018

     

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    Zimbabwe

    Russia stepping up relationship with Harare

    Russia is pursuing military co-operation with Zimbabwe and looking at opportunities in the diamond sector. It is also fully implementing a $3bn joint platinum project which had stalled after a Russian consortium, including arms conglomerate Rostec, partnered a Zimbabwean group to develop the platinum operation near Harare in 2014. It has also signed agreements to establish a special economic zone for Russian firms to manufacture goods for export and to develop Zimbabwe’s agriculture.

    Asosko Insight 9 March

     

    Zambia

    Global Industries invests in soya plant

    Edible oil manufacturer Global Industries has invested $20m in a soya bean processing plant to double edible oil production capacity to 100,000 tonnes a day. The latest financing into the state-of-the-art soya bean processing machinery is an addition to a $14m investment made in 2016. The increase in production means Global Indsutries also be looking to increase its annual soya bean supply of 350,000 tonnes from small-scale farmers.

    Zambia Daily Mail 7 March

     

    Angola

    Exploration equipment producer awarded subsea systems contract

    US exploration equipment manufacturer FMC Technologies has received an order from Eni Angola to supply subsea production systems for its deep-water exploration development. The order is valued at $393m. Other partners in the joint venture are Angolan oil and gas companies Sonangol Pesquisa e Produção, SSI Fifteen and Falcon Oil Holding Angola SA.

    Energy Key Facts 8 March

     

    Nigeria

    EU, Germany to invest in power sector

    Nigeria’s power supply will receive a boost of up to €33m as part of the second phase of the Nigerian Energy Support Programme, championed by the European Union and German government. The project, which is expected to provide electricity to about 10,000 residents in five states, will help provide sustainable power supply to people in rural areas and complement government efforts to improve access to power through renewable energy.

    The Guardian Nigeria 6 March

     

    Krispy Kreme enters Nigerian market

    Krispy Kreme Doughnut Corporation has made inroads into the Nigerian food and beverage market with an investment of $7m. The expansion into Nigeria, which was facilitated by quick-service restaurant firm Quality Foods Africa, is expected to generate employment for 200 locals, with 20 new outlets expected to open over the next five years.

    The Guardian Nigeria 8 March

     

    Mauritius

    Conyers announces MBO

    Bermuda law firm Conyers Dill & Pearman has announced a management buy-out of Conyers’ Mauritius Business by three leading international business lawyers operating the firm’s Mauritius office. The firm will continue to service its clients in Mauritius through Venture Law and Venture Corporate Services. 

    Africa Global Funds 6 March

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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 March

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Weekly newsbriefs

Weekly Africa Newsbriefs 12 March

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

Leriba Africa Newsbrief

 

 Week commencing 12 March 2018

 

acetylene-1238942_1280

 

 

 

 

 

 

 

 

 

 

Zimbabwe

Russia stepping up relationship with Harare

Russia is pursuing military co-operation with Zimbabwe and looking at opportunities in the diamond sector. It is also fully implementing a $3bn joint platinum project which had stalled after a Russian consortium, including arms conglomerate Rostec, partnered a Zimbabwean group to develop the platinum operation near Harare in 2014. It has also signed agreements to establish a special economic zone for Russian firms to manufacture goods for export and to develop Zimbabwe’s agriculture.

Asosko Insight 9 March

 

Zambia

Global Industries invests in soya plant

Edible oil manufacturer Global Industries has invested $20m in a soya bean processing plant to double edible oil production capacity to 100,000 tonnes a day. The latest financing into the state-of-the-art soya bean processing machinery is an addition to a $14m investment made in 2016. The increase in production means Global Indsutries also be looking to increase its annual soya bean supply of 350,000 tonnes from small-scale farmers.

Zambia Daily Mail 7 March

 

Angola

Exploration equipment producer awarded subsea systems contract

US exploration equipment manufacturer FMC Technologies has received an order from Eni Angola to supply subsea production systems for its deep-water exploration development. The order is valued at $393m. Other partners in the joint venture are Angolan oil and gas companies Sonangol Pesquisa e Produção, SSI Fifteen and Falcon Oil Holding Angola SA.

Energy Key Facts 8 March

 

Nigeria

EU, Germany to invest in power sector

Nigeria’s power supply will receive a boost of up to €33m as part of the second phase of the Nigerian Energy Support Programme, championed by the European Union and German government. The project, which is expected to provide electricity to about 10,000 residents in five states, will help provide sustainable power supply to people in rural areas and complement government efforts to improve access to power through renewable energy.

The Guardian Nigeria 6 March

 

Krispy Kreme enters Nigerian market

Krispy Kreme Doughnut Corporation has made inroads into the Nigerian food and beverage market with an investment of $7m. The expansion into Nigeria, which was facilitated by quick-service restaurant firm Quality Foods Africa, is expected to generate employment for 200 locals, with 20 new outlets expected to open over the next five years.

The Guardian Nigeria 8 March

 

Mauritius

Conyers announces MBO

Bermuda law firm Conyers Dill & Pearman has announced a management buy-out of Conyers’ Mauritius Business by three leading international business lawyers operating the firm’s Mauritius office. The firm will continue to service its clients in Mauritius through Venture Law and Venture Corporate Services. 

Africa Global Funds 6 March