Weekly Africa Newsbriefs 26 March

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    Leriba Africa Newsbrief

     

     Week commencing 26 March 2018

     


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    Zimbabwe

    Karo Resources to invest $4.2bn in platinum project

    Karo Resources, a company linked to Greek mining entrepreneur Loucas Pouroulis, will spend $4.2bn on a platinum mining project in what is said to be the largest deal in the country’s mining industry to date. Karo’s platinum project will begin in 2020 and produce 1.4-million ounces of platinum-group metals a year at full output. The project will also include a 600MW power plant and coal-mining operations to feed it.

    Business Live 22 March

     

    Nigeria

    Milost plans $1bn investment in local bank

    New York-based private equity firm Milost Global is looking to inject as much as $1bn to recapitalise Unity Bank, which is struggling to build buffers after a slowdown in Africa’s biggest economy. Milost has offered to invest $700m in equity and $300m in five-year bonds that can be converted into shares in the Nigerian lender. The private-equity firm will get an initial stake of 30% in the Lagos-based bank in exchange for its first equity investment of $250m. The transaction is still subject to a due diligence as well as regulatory approvals.

    Bloomberg 19 March

     

    Morocco

    FICOSA to launch automotive facility

    Spanish automotive firm Ficosa has announced the launch of a new production site. The first of its kind in Africa, the plant will be constructed in the Sale Technopolis Free Zone with an overall investment of $3.3m and plans to employ 800 people by 2020. The establishment of the new facility will meet the demands of its main client, Peugeot Citroën Automotive. The plant will produce mirror systems, liquid tanks, cameras, and cable harnesses.

    Morrocco World News 19 March

     

    Rwanda

    Minagri partners with Energy 4 Impact in solar irrigation

    UK non-profit organisation Energy 4 Impact in partnership with Rwanda’s agriculture ministry has has unveiled a solar-powered irrigation system for districts affected by dry spells. Over 13,000 farmers will access the irrigation systems for over five years. The country’s current irrigation scope is only 8% of irrigable land, but there are plans to push it to 17% by 2024. The solar irrigation project in Rwanda will bring about financial mechanisms to increase the affordability of small-scale solar irrigation technologies.

    The New Times 23 March

     

    Zambia

    Verve partners with UBA to supply prepaid cards to farmers

    Multinational technology firm Verve International has signed a partnership agreement with United Bank for Africa (UBA) to deliver cost-effective prepaid cards to farmers under the Zambian Ministry of Agriculture’s Farmer Input Support Programme – an agricultural subsidy initiative to help farmers purchase agricultural inputs at subsidised costs.  Through the program, the government intends to boost food production by funding the cards issued to each farmer with $170 while the farmers contribute $40 towards purchase of farm inputs.

     Communications Week 17 March

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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 26 March

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 26 March

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

Leriba Africa Newsbrief

 

 Week commencing 26 March 2018

 


wedding-1468647_1280

 

 

 

 

 

 

 

 

 

 

Zimbabwe

Karo Resources to invest $4.2bn in platinum project

Karo Resources, a company linked to Greek mining entrepreneur Loucas Pouroulis, will spend $4.2bn on a platinum mining project in what is said to be the largest deal in the country’s mining industry to date. Karo’s platinum project will begin in 2020 and produce 1.4-million ounces of platinum-group metals a year at full output. The project will also include a 600MW power plant and coal-mining operations to feed it.

Business Live 22 March

 

Nigeria

Milost plans $1bn investment in local bank

New York-based private equity firm Milost Global is looking to inject as much as $1bn to recapitalise Unity Bank, which is struggling to build buffers after a slowdown in Africa’s biggest economy. Milost has offered to invest $700m in equity and $300m in five-year bonds that can be converted into shares in the Nigerian lender. The private-equity firm will get an initial stake of 30% in the Lagos-based bank in exchange for its first equity investment of $250m. The transaction is still subject to a due diligence as well as regulatory approvals.

Bloomberg 19 March

 

Morocco

FICOSA to launch automotive facility

Spanish automotive firm Ficosa has announced the launch of a new production site. The first of its kind in Africa, the plant will be constructed in the Sale Technopolis Free Zone with an overall investment of $3.3m and plans to employ 800 people by 2020. The establishment of the new facility will meet the demands of its main client, Peugeot Citroën Automotive. The plant will produce mirror systems, liquid tanks, cameras, and cable harnesses.

Morrocco World News 19 March

 

Rwanda

Minagri partners with Energy 4 Impact in solar irrigation

UK non-profit organisation Energy 4 Impact in partnership with Rwanda’s agriculture ministry has has unveiled a solar-powered irrigation system for districts affected by dry spells. Over 13,000 farmers will access the irrigation systems for over five years. The country’s current irrigation scope is only 8% of irrigable land, but there are plans to push it to 17% by 2024. The solar irrigation project in Rwanda will bring about financial mechanisms to increase the affordability of small-scale solar irrigation technologies.

The New Times 23 March

 

Zambia

Verve partners with UBA to supply prepaid cards to farmers

Multinational technology firm Verve International has signed a partnership agreement with United Bank for Africa (UBA) to deliver cost-effective prepaid cards to farmers under the Zambian Ministry of Agriculture’s Farmer Input Support Programme – an agricultural subsidy initiative to help farmers purchase agricultural inputs at subsidised costs.  Through the program, the government intends to boost food production by funding the cards issued to each farmer with $170 while the farmers contribute $40 towards purchase of farm inputs.

 Communications Week 17 March