Weekly Africa Newsbriefs 24 July

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    Leriba Africa Newsbrief

     

     Week commencing 24 July 2017

     


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    West Africa

    EU commits over €1bn in sustainable electricity

    The European Union will commit €1,060bn in West Africa for the provision of sustainable energy up until the year 2020. Among the factors to improve the energy sector are: strong political will to put in place a solid regulatory and policy framework, a stable environment for trade and investment, and improved capacities. The EU is allocating €360m for energy and transport through the Africa Investment Facility.

    The Guardian Nigeria 19 July

     

     

    Kenya

    Chinese firm lands lucrative power line contract

    The Kenyan energy ministry has awarded China CAMC Engineering a $135m contract to construct a high-voltage power transmission line between Garissa and Isiolo. The company will build the 285km line and associated sub-stations between the two towns over a two-year period.

    Daily Nation 18 July

     

    Plan to build $9.6m sugar factory

    Surendra Patel, owner of Foam Mattresses Ltd, is set to build his South Gem Sugar Factory at an estimated $9,6m in partnership with an unnamed investor. The factory will have capacity to crush 1,000MT of cane per day, producing 2,5MT of sugar. Construction is expected to take 18 months.

    Daily Nation 20 July

     

     

    Ghana

    $33m Brazilian grant to support farmers

    Government efforts to transform agriculture with the introduction of the Planting for Food and Jobs initiative has received a major boost with a $33m grant from the Brazilian government for the supply of agricultural machinery. The amount forms part of an existing $96m soft loan for the revamping of Ghana’s agricultural sector. It will be used for the procurement of logistics for the implementation of the government’s One Village One Dam policy, which is set to begin soon.

    B&FT Online 17 July

     

     

    Nigeria

    BoI, Ebonyi seal pact to fast-track industrialisation

    The Bank of Industry and the Ebonyi state government have signed an $11,4m memorandum of understanding to promote agriculture and the setting up of industries in the state. The programme aims to set up at least one industry in each of its 150 communities.

    The Guardian Nigeria 19 July

     

     

    Tanzania

    CIF set to commit $21,7m for geothermal project

    The Ngozi geothermal steam field will soon receive $21,7m worth of funding from the Climate Investment Fund to implement its 100MW geothermal project. Activities will include exploratory test drilling and installation of the required steam-gathering infrastructure. Once operational, the plant will produce up to 823 Gigawatt hours a year to reduce energy imports.

    Corporate Digest 20 July

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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 24 July

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 24 July

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

Leriba Africa Newsbrief

 

 Week commencing 24 July 2017

 


twilight-532720_1280

 

 

 

 

 

 

 

 

 

 

West Africa

EU commits over €1bn in sustainable electricity

The European Union will commit €1,060bn in West Africa for the provision of sustainable energy up until the year 2020. Among the factors to improve the energy sector are: strong political will to put in place a solid regulatory and policy framework, a stable environment for trade and investment, and improved capacities. The EU is allocating €360m for energy and transport through the Africa Investment Facility.

The Guardian Nigeria 19 July

 

 

Kenya

Chinese firm lands lucrative power line contract

The Kenyan energy ministry has awarded China CAMC Engineering a $135m contract to construct a high-voltage power transmission line between Garissa and Isiolo. The company will build the 285km line and associated sub-stations between the two towns over a two-year period.

Daily Nation 18 July

 

Plan to build $9.6m sugar factory

Surendra Patel, owner of Foam Mattresses Ltd, is set to build his South Gem Sugar Factory at an estimated $9,6m in partnership with an unnamed investor. The factory will have capacity to crush 1,000MT of cane per day, producing 2,5MT of sugar. Construction is expected to take 18 months.

Daily Nation 20 July

 

 

Ghana

$33m Brazilian grant to support farmers

Government efforts to transform agriculture with the introduction of the Planting for Food and Jobs initiative has received a major boost with a $33m grant from the Brazilian government for the supply of agricultural machinery. The amount forms part of an existing $96m soft loan for the revamping of Ghana’s agricultural sector. It will be used for the procurement of logistics for the implementation of the government’s One Village One Dam policy, which is set to begin soon.

B&FT Online 17 July

 

 

Nigeria

BoI, Ebonyi seal pact to fast-track industrialisation

The Bank of Industry and the Ebonyi state government have signed an $11,4m memorandum of understanding to promote agriculture and the setting up of industries in the state. The programme aims to set up at least one industry in each of its 150 communities.

The Guardian Nigeria 19 July

 

 

Tanzania

CIF set to commit $21,7m for geothermal project

The Ngozi geothermal steam field will soon receive $21,7m worth of funding from the Climate Investment Fund to implement its 100MW geothermal project. Activities will include exploratory test drilling and installation of the required steam-gathering infrastructure. Once operational, the plant will produce up to 823 Gigawatt hours a year to reduce energy imports.

Corporate Digest 20 July