Weekly Africa Newsbriefs 16 April

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    Leriba Africa Newsbrief

     

     Week commencing 16 April 2018

     


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    Kenya

    Diamond Trust Bank the winning bidder for Imperial

    East African banking group Diamond Trust Bank has been selected to acquire Kenya’s Imperial Bank in an effort to revive the troubled lender that was placed in administration more than two years ago. The listed lender’s bid won in a process that will see Diamond Trust acquire both the assets and liabilities of the collapsed bank. Negotiations over the acquisition of the assets are ongoing.

    Bloomberg 12 April

     

    Road project delayed by debt concerns

    A $3.5bn inter-city expressway, Kenya’s second-biggest infrastructure project since independence, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt. While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects has stirred concern that the debt is unsustainable for the $71bn economy. The nation’s debt could rise to 58% of gross domestic product by the end of June, from 40.6 % in the 2011-12 fiscal year. Construction of the 473km, four-lane highway will be undertaken by San Francisco-based engineering firm Bechtel Group, which has arranged commercial loans for Kenya to undertake the project.

    Bloomberg 13 April

     

     

    Mozambique

    Takura acquires stake in Mozambican vegetable producer

    Takura Capital, a Zimbabwean private equity firm, has invested an undisclosed sum in Mozambican vegetable producer Companhia do Vanduzi. The acquisition followed a bidding process managed by Verdant Capital, a corporate finance firm based in Mauritius. The sale of Vanduzi is the second transaction Verdant has completed in Mozambique since 2016.

    Africa Global Funds 8 April

     

     

    Liberia

    Residents to benefit from $22m steel plant

    More than 1,000 Liberians in are set to benefit from a new steel plant being developed by Pan African steel manufacturer, Sethi Brothers. The plant is expected to provide job opportunities for locals who will be trained by experts from Ghana. The mass production of steel rods is expected to eventually reduce the price of the commodity on the local market.

    Daily Observer 9 April

     

     

    Libya

    Austrian company signs maintenance contract with Tripoli Medical Centre 

    Austrian medical services company Vamed has signed a four-year maintenance contract with Tripoli Medical Centre. The contract will enable Vamed to resume its maintenance of stalled medical equipment and devices at the centre, and to work on replacing non-serviceable devices with modern devices. The value of the new contract has not been disclosed.

    Libya Business News 10 April

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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 16 April

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 16 April

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

Leriba Africa Newsbrief

 

 Week commencing 16 April 2018

 


building-244265_1280

 

 

 

 

 

 

 

 

 

 

Kenya

Diamond Trust Bank the winning bidder for Imperial

East African banking group Diamond Trust Bank has been selected to acquire Kenya’s Imperial Bank in an effort to revive the troubled lender that was placed in administration more than two years ago. The listed lender’s bid won in a process that will see Diamond Trust acquire both the assets and liabilities of the collapsed bank. Negotiations over the acquisition of the assets are ongoing.

Bloomberg 12 April

 

Road project delayed by debt concerns

A $3.5bn inter-city expressway, Kenya’s second-biggest infrastructure project since independence, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt. While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects has stirred concern that the debt is unsustainable for the $71bn economy. The nation’s debt could rise to 58% of gross domestic product by the end of June, from 40.6 % in the 2011-12 fiscal year. Construction of the 473km, four-lane highway will be undertaken by San Francisco-based engineering firm Bechtel Group, which has arranged commercial loans for Kenya to undertake the project.

Bloomberg 13 April

 

 

Mozambique

Takura acquires stake in Mozambican vegetable producer

Takura Capital, a Zimbabwean private equity firm, has invested an undisclosed sum in Mozambican vegetable producer Companhia do Vanduzi. The acquisition followed a bidding process managed by Verdant Capital, a corporate finance firm based in Mauritius. The sale of Vanduzi is the second transaction Verdant has completed in Mozambique since 2016.

Africa Global Funds 8 April

 

 

Liberia

Residents to benefit from $22m steel plant

More than 1,000 Liberians in are set to benefit from a new steel plant being developed by Pan African steel manufacturer, Sethi Brothers. The plant is expected to provide job opportunities for locals who will be trained by experts from Ghana. The mass production of steel rods is expected to eventually reduce the price of the commodity on the local market.

Daily Observer 9 April

 

 

Libya

Austrian company signs maintenance contract with Tripoli Medical Centre 

Austrian medical services company Vamed has signed a four-year maintenance contract with Tripoli Medical Centre. The contract will enable Vamed to resume its maintenance of stalled medical equipment and devices at the centre, and to work on replacing non-serviceable devices with modern devices. The value of the new contract has not been disclosed.

Libya Business News 10 April