Weekly Africa Newsbriefs 13 November

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    Leriba Africa Newsbrief

     

     Week commencing 13 Novemeber 2017

     

     

    food-2179178_1280

     

     

     

     

     

     

     

     

     

     

    Mozambique

    Kibo acquires stake in Tropigalia

    Private equity firm Kibo Capital Partners has acquired an undisclosed stake in fast-moving consumer goods distribution firm Tropigalia SA. The financial details of the transaction have not been disclosed. The capital will fund the company’s goal to expand its product offering by capturing additional distribution agreements with leading global brands, and launching new product lines under its Gourmet brand.

    African Private Equity and Venture Capital Association 8 November

     

    Morocco

    Lear Corporation launches new plant

    Lear Corporation, the US-based supplier of automotive seating systems and electrical distribution, has announced the opening of its fifth factory in Tangier, which will employ more than 500 workers. The industrial group has signed an agreement to acquire Spanish automotive interior manufacturer, Grupo Antolin’s automotive seating business. The transaction will boost Lear’s position as a global supplier of automotive seating.

    Morocco World New 5 November

     

    Nigeria

    African Export-Import Bank invests in state projects

    African Export-Import Bank has disbursed over $16bn for the execution various projects, including the construction of a Medical Centre of Excellence in collaboration with the King’s College Hospital in London and the federal government. The medical centre is expected to stem the outflow of Nigerians seeking better foreign medical treatment. The bank is also in talks with the government about the establishment of two industrial parks and export promotion zones with a view to create opportunities for small and medium enterprises.

    The Vanguard 9 November

     

    Rwanda

    Global investor takes over local potato chips maker

    Nigerian and Switzerland-based investment firm BlackPace Africa Group has bought Ndiyo Business Group, a major producer of salted chips. The takeover is a strategic entry for the group, presenting the company with an opportunity to leverage Ndiyo’s network to enhance Rwanda’s potato value chain. In August, BlackPace signed a $120m partnership deal with the government to invest in development and improvement of the local potato value chain under its Cros Agro Allied Rwanda subsidiary. Under the project, the firm aims to increase the production of potatoes to 10-million tonnes in the next five years.

    The New Times 8 November

    Cameroon

    Carlson Rezidor makes its debut with Radisson Blu 

    With the launch of its Radisson Blu in Doula, the Carlson Rezidor Hotel Group has entered its 30th African country, bringing its portfolio to 83 hotels and over 17,500 rooms in operation or under development on the continent. The hotel is scheduled to open in 2019.

    Bizcommunity 10 November

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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 13 November

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Weekly newsbriefs

Weekly Africa Newsbriefs 13 November

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

Leriba Africa Newsbrief

 

 Week commencing 13 Novemeber 2017

 

 

food-2179178_1280

 

 

 

 

 

 

 

 

 

 

Mozambique

Kibo acquires stake in Tropigalia

Private equity firm Kibo Capital Partners has acquired an undisclosed stake in fast-moving consumer goods distribution firm Tropigalia SA. The financial details of the transaction have not been disclosed. The capital will fund the company’s goal to expand its product offering by capturing additional distribution agreements with leading global brands, and launching new product lines under its Gourmet brand.

African Private Equity and Venture Capital Association 8 November

 

Morocco

Lear Corporation launches new plant

Lear Corporation, the US-based supplier of automotive seating systems and electrical distribution, has announced the opening of its fifth factory in Tangier, which will employ more than 500 workers. The industrial group has signed an agreement to acquire Spanish automotive interior manufacturer, Grupo Antolin’s automotive seating business. The transaction will boost Lear’s position as a global supplier of automotive seating.

Morocco World New 5 November

 

Nigeria

African Export-Import Bank invests in state projects

African Export-Import Bank has disbursed over $16bn for the execution various projects, including the construction of a Medical Centre of Excellence in collaboration with the King’s College Hospital in London and the federal government. The medical centre is expected to stem the outflow of Nigerians seeking better foreign medical treatment. The bank is also in talks with the government about the establishment of two industrial parks and export promotion zones with a view to create opportunities for small and medium enterprises.

The Vanguard 9 November

 

Rwanda

Global investor takes over local potato chips maker

Nigerian and Switzerland-based investment firm BlackPace Africa Group has bought Ndiyo Business Group, a major producer of salted chips. The takeover is a strategic entry for the group, presenting the company with an opportunity to leverage Ndiyo’s network to enhance Rwanda’s potato value chain. In August, BlackPace signed a $120m partnership deal with the government to invest in development and improvement of the local potato value chain under its Cros Agro Allied Rwanda subsidiary. Under the project, the firm aims to increase the production of potatoes to 10-million tonnes in the next five years.

The New Times 8 November

Cameroon

Carlson Rezidor makes its debut with Radisson Blu 

With the launch of its Radisson Blu in Doula, the Carlson Rezidor Hotel Group has entered its 30th African country, bringing its portfolio to 83 hotels and over 17,500 rooms in operation or under development on the continent. The hotel is scheduled to open in 2019.

Bizcommunity 10 November