Weekly Africa Newsbriefs 21 January

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 21 January

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Weekly Africa Newsbriefs 21 January

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Leriba Africa Newsbrief

 

Week commencing 21 January

 

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Mozambique

Arise acquires 29.5% Moza Banco stake

US technology solutions company Arise Virtual Solutions has received approval from the Central Bank of Mozambique to acquire a 29.5% stake in Moza Banco, a locally owned bank, through a subscription of new shares. Arise has an investment in another local bank, BTM, and it intends to merge the two.

Africa Global Funds 14 January

 

Tanzania

Bharti Airtel gives Tanzania bigger stake

Indian telecommunications company Bharti Airtel has agreed to give part of its stake in Airtel Tanzania to the government. This raises the East African nation’s holding in the mobile phone operator to 49% from 40%. Bharti Airtel retains a 51% stake in the company.

Reuters 11 January

 

East Africa

AIIM acquires minority stake in BBOXX

African Infrastructure Investment Managers (AIIM) has acquired a minority stake in BBOXX’s operations in East Africa as part of a $31m investment plan. BBOXX is a next-generation utility platform developing solutions to provide affordable, clean energy to off-grid communities in emerging markets.

 Africa Global Funds 16 January

 

Egypt

Exim Bank provides $1.2bn loan agreement

The Chinese Export-Import Bank (Exim Bank) will provide a facilitated loan of $1.2bn for the implementation of Egypt’s first electric train. It will target the new cities of El Salam, El Obour, El Shorouk, Al Mostakbal, Al Roubiki and the country’s proposed new administrative capital. It Includes 11 stations and serves 350,000 people.

Daily News Egypt 18 January

 

Kenya

Burger King opens fifth store

US-based global fast-food franchise Burger King is set to open a new branch in Lavington, Nairobi. The eatery will be located at the new Shell fuel station, joining food chains KFC and Java that are tapping into traffic from the upmarket neighbourhood. This will be the franchise’s fifth store in the country.

Business Daily 17 January