Weekly Africa Newsbriefs 19 June

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    Leriba Africa Newsbrief

     

     

    Week commencing 19 June 2017

     

    germany-1985055_1280

     

     

     

     

     

     

     

     

    Mali

    AIIM acquires 44% stake in energy firm

    African Infrastructure Investment Managers has acquired a 44% stake in Albatros Energy Mali. Albatros will build, own, operate and transfer a 90-megawatt thermal power station in Kayes, western Mali, which will be the nation’s first independent power project to feed into the national grid. The new thermal project will provide a sustainable energy source allowing increased access to electricity for Mali’s citizens and enabling industry growth.

    AIIM Africa 13 June

     

    Morocco

    French company selected to manage Casablanca tramway

    RATP Dev, the world’s fifth-largest operator of urban transport, has been selected as the preferred bidder for the contract for the operation and maintenance of the Casablanca tramway for the 2017-2029 term. Casa Transport will hold exclusive discussions with RATP Dev at the end of the month to finalise the details.

    Morocco World News 12 June

     

    Sub-Saharan Africa

    Digital finance firm launches with Android Pay to offer mobile-to-mobile transfers

    WorldRemit has added Android Pay to its services, offering a new wallet for the firm’s Android Pay users to send money internationally and millions using mobile money accounts. The move will see WorldRemit bringing together leading players in mobile payments and enable users to send money to over 112-million mobile money accounts accessible via its network.

    Somaliland Press 13 June

     

    Tanzania

    Orange launches new initiative for start-ups

    Orange is creating a new Africa section in its flagship programme for investment in start-ups, Orange Digital Ventures. As part of the initiative it is committing €50m corresponding. Orange Digital Ventures Africa is the group’s investment vehicle for early-stage innovation projects in Africa in areas such as new connectivity, fintech, the Internet of Things, energy and e-health. This support will concern all innovative start-ups.

    Corporate Digest 13 June

     

    Ghana

    Engie, Eleqtra agree on 50MW wind power project

    Engie and eleQtra, a developer of power and transportation projects in sub-Saharan Africa, have signed an agreement that defines the terms and the schedule for the development and construction of the 50MW Ada wind power project in Accra.  The project is expected to require an estimated $120m and start operations in 2019. ENGIE will enter as a 40% partner in the project. The project will contribute to the Ghanaian government’s objective of generating 10% of its electricity from renewable resources.

    Eleqtra 14 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 19 June

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 19 June

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

Leriba Africa Newsbrief

 

 

Week commencing 19 June 2017

 

germany-1985055_1280

 

 

 

 

 

 

 

 

Mali

AIIM acquires 44% stake in energy firm

African Infrastructure Investment Managers has acquired a 44% stake in Albatros Energy Mali. Albatros will build, own, operate and transfer a 90-megawatt thermal power station in Kayes, western Mali, which will be the nation’s first independent power project to feed into the national grid. The new thermal project will provide a sustainable energy source allowing increased access to electricity for Mali’s citizens and enabling industry growth.

AIIM Africa 13 June

 

Morocco

French company selected to manage Casablanca tramway

RATP Dev, the world’s fifth-largest operator of urban transport, has been selected as the preferred bidder for the contract for the operation and maintenance of the Casablanca tramway for the 2017-2029 term. Casa Transport will hold exclusive discussions with RATP Dev at the end of the month to finalise the details.

Morocco World News 12 June

 

Sub-Saharan Africa

Digital finance firm launches with Android Pay to offer mobile-to-mobile transfers

WorldRemit has added Android Pay to its services, offering a new wallet for the firm’s Android Pay users to send money internationally and millions using mobile money accounts. The move will see WorldRemit bringing together leading players in mobile payments and enable users to send money to over 112-million mobile money accounts accessible via its network.

Somaliland Press 13 June

 

Tanzania

Orange launches new initiative for start-ups

Orange is creating a new Africa section in its flagship programme for investment in start-ups, Orange Digital Ventures. As part of the initiative it is committing €50m corresponding. Orange Digital Ventures Africa is the group’s investment vehicle for early-stage innovation projects in Africa in areas such as new connectivity, fintech, the Internet of Things, energy and e-health. This support will concern all innovative start-ups.

Corporate Digest 13 June

 

Ghana

Engie, Eleqtra agree on 50MW wind power project

Engie and eleQtra, a developer of power and transportation projects in sub-Saharan Africa, have signed an agreement that defines the terms and the schedule for the development and construction of the 50MW Ada wind power project in Accra.  The project is expected to require an estimated $120m and start operations in 2019. ENGIE will enter as a 40% partner in the project. The project will contribute to the Ghanaian government’s objective of generating 10% of its electricity from renewable resources.

Eleqtra 14 June