Weekly Africa Newsbriefs 18 September

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    Leriba Africa Newsbrief

     

     Week commencing 18 September 2017

     


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    Nigeria

    Olam boosts food business with $150m investment

    Global food trader Olam International has invested $150m in animal feed mills and poultry farms in Nigeria as it seeks to boost its agribusiness venture in Africa’s biggest food market by population. These include bird and fish feed mills with the capacity for 360,000 tonnes each, and a hatchery to produce 1.6-million day-old chicks weekly.

    Bloomberg 12 September

     

    Apis backs Bankers Warehouse with $30m

    Private equity fund manager Apis Partners is backing Nigeria’s Bankers Warehouse with a reported $30m in exchange for an undisclosed stake. The deal is the sixth investment for the firm’s inaugural fund, Apis Growth Fund I, which closed with $287m in March. Bankers Warehouse provides cash management solutions to Nigeria’s financial institution and companies with the ability to securely outsource their cash management functions.

    Africa Capital Digest 17 September

     

    Egypt

    FFC Aqualia and Orascom to construct water treatment plant

    The world’s third largest water company, FFC Aqualia, has secured the contract to build the Abu Rawash wastewater treatment plant. The facility will be constructed in collaboration with Orascom construction. The $320m agreement will entail the design, construction and operation of the plant, including a three year and a half year maintenance period following completion.

    African Business Review 16 September

     

    Kenya

    Arise takes stake in Equity Bank

    Financial services investment platform Arise is taking a 12% stake in Equity Group Holdings, the parent company of Equity Bank. The deal makes Arise the company’s largest single shareholder. The financial terms of the transaction were not disclosed. Equity Group Holdings serves almost 12-million clients across six countries in East Africa. The deal will see Arise bring its resources and expertise to help grow of the business further.

    Africa Capital Digest 17 September

     

    Sub-Saharan Africa

    Capitalworks launches $300m investment company

    Independent alternative asset manager Capitalworks Group has launched Africa Capitalworks, an investment company that will deploy permanent equity capital in midmarket companies in strategically selected sectors across sub-Saharan Africa, excluding South Africa. The team will assist its investee companies to enhance business practices; access markets, finance and technology; improve efficiencies; and build business networks and global relationships.

    Engineering News 14 September

    This entry was posted in Leriba in the Media, Snapshots, Weekly newsbriefs. Bookmark the permalink.

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 18 September

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 18 September

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

Leriba Africa Newsbrief

 

 Week commencing 18 September 2017

 


animal-2664504_1280 (1)

 

 

 

 

 

 

 

 

 

 

 

Nigeria

Olam boosts food business with $150m investment

Global food trader Olam International has invested $150m in animal feed mills and poultry farms in Nigeria as it seeks to boost its agribusiness venture in Africa’s biggest food market by population. These include bird and fish feed mills with the capacity for 360,000 tonnes each, and a hatchery to produce 1.6-million day-old chicks weekly.

Bloomberg 12 September

 

Apis backs Bankers Warehouse with $30m

Private equity fund manager Apis Partners is backing Nigeria’s Bankers Warehouse with a reported $30m in exchange for an undisclosed stake. The deal is the sixth investment for the firm’s inaugural fund, Apis Growth Fund I, which closed with $287m in March. Bankers Warehouse provides cash management solutions to Nigeria’s financial institution and companies with the ability to securely outsource their cash management functions.

Africa Capital Digest 17 September

 

Egypt

FFC Aqualia and Orascom to construct water treatment plant

The world’s third largest water company, FFC Aqualia, has secured the contract to build the Abu Rawash wastewater treatment plant. The facility will be constructed in collaboration with Orascom construction. The $320m agreement will entail the design, construction and operation of the plant, including a three year and a half year maintenance period following completion.

African Business Review 16 September

 

Kenya

Arise takes stake in Equity Bank

Financial services investment platform Arise is taking a 12% stake in Equity Group Holdings, the parent company of Equity Bank. The deal makes Arise the company’s largest single shareholder. The financial terms of the transaction were not disclosed. Equity Group Holdings serves almost 12-million clients across six countries in East Africa. The deal will see Arise bring its resources and expertise to help grow of the business further.

Africa Capital Digest 17 September

 

Sub-Saharan Africa

Capitalworks launches $300m investment company

Independent alternative asset manager Capitalworks Group has launched Africa Capitalworks, an investment company that will deploy permanent equity capital in midmarket companies in strategically selected sectors across sub-Saharan Africa, excluding South Africa. The team will assist its investee companies to enhance business practices; access markets, finance and technology; improve efficiencies; and build business networks and global relationships.

Engineering News 14 September