Weekly Africa Newsbriefs 20 November

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 20 November

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Weekly Africa Newsbriefs 20 November

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Leriba Africa Newsbrief

 

 Week commencing 20 Novemeber 2017

 

 

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Nigeria

Indomie buys Dangote Noodles

Dangote Noodles, a unit of Nigerian company Dangote Flour Mills, has sold two production lines in Ikorodu and Calabar, to rival pasta maker De United Foods Industries, a joint venture between Tolaram Group of Singapore and Salim Group of Indonesia, produces Indomie Noodles. The transaction is valued at $12.26m and comes after Dangote Flour Mills’ announcement that it wanted to quit the noodles business to focus on its flour and pasta production.

The Vanguard 15 November

 

General Electric to invest in infrastructure maintenance

General Electric will invest $2.7bn in infrastructure, operation and maintenance on Nigeria Railway Corporation’s entire narrow-gauge lines concession. General Electric will begin work in December, and talks are scheduled for early next year for it to take over management of the lines.

The Guardian 11 November

 

Mozambique

Capitol Resources authorised to develop mining activities

The government has approved a resolution authorising Capitol Resources, a subsidiary of Australia’s steel manufacturer Baobab, to carry out mining activities in the district of Chiúta. The resolution gives the company rights to produce iron ore, process steel and construct a steel plant as well as a thermoelectric plant. The contract is valid for 25 years, subject to renewal.

Club of Mozambique 15 November

 

Tanzania

South Korea to offer support on clean energy

South Korea has pledged to support Tanzania as it exploits its potential to produce renewable energy to boost industrialisation and speed up transformation of the nation to a semi-industrial economy. To date, Korea’s Economic Development Cooperation Fund has invested $545.10m to fund 12 projects in infrastructure, energy, water and education in the country.

Daily News Tanzania 13 November

 

Kenya

Stanbic creates one-stop unit targeting wealth seekers 

Mid-tier lender Stanbic Bank has launched a new business unit, Stanbic Wealth, targeted at helping clients grow wealth through a diversified set of onshore and offshore financial and investment services. The unit will offer individuals and firms a one-stop shop for life and general insurance, investment opportunities and health services, in an effort to meet the increasingly sophisticated needs of clients seeking wealth-type products.

Daily Nation 16 November