Weekly Africa Newsbrief 27 November

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    Leriba Africa Newsbrief

     

     Week commencing 27 Novemeber 2017

     

     

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    Kenya

    Milost backs Kings Pride Properties in multimillion dollar deal

    Kings Pride Properties, a Nairobi-based real estate development and investment company, has signed a financing term sheet of $450m with Milost Global, a New York-based private equity firm. This is a working capital and development facility for the company which is being provided as a combination of debt and equity, of which $150m will go to equity facility with the remainder going towards the debt facility. The funding will go towards helping Kings Pride expand into the East African region.

    Liquid Africa 20 November

     

     

    Mozambique

    Portucel to build pulp mill

    Paper pulp producer Portucel Mozambique – a subsidiary of Portuguese pulp manufacturer, The Navigator Company – is set to build a $3bn pulp mill in Ile-Namarroi. The mill will have a production capacity of 1.5Mt and a biomass power generation plant. Portucel will finance 80% of the project, with the International Finance Corporation expected to cover the remaining 20%. It is expected to be operational by 2023 and increase the global pulp production of The Navigator Company to more than double its capacity of 1,440kt per annum.

    Club of Mozambique 22 November

     

     

    Egypt

    Groupe PSA, Scope to partner with Mansour

    French automobile manufacturer Groupe PSA is finalising the conditions of its partnership with multinational conglomerate Mansour Group, to take effect early in 2018. After launching an open import and distribution contract bid in Egypt for its Peugeot products earlier in the year, the vehicle manufacturer, along with Mansour Group and Dubai-based investment firm, Scope Investments, was awarded the deal to distribute Peugot products in Egypt.

    Daily News Egypt 22 November

     

     

    Uganda

    Chinese firm awarded land in construction deal

    President Yoweri Museveni has offered land to Chinese energy firm Sunmaker Energy to build an oil and gas vocational institute to train Ugandans in internationally certified vocational courses. The institute will train 1,600 students a year in oil and gas skills, including health, safety and environmental management.

    Daily Monitor Uganda 23 November

     

    XSML announces healthcare investment

    Multinational fund manager XSML announced its fifth investment in Ugandan pharmacy network Ecopharm. The firm has a network of eight pharmacies in Kampala. The financing will enable the network to expand its footprint across Kampala and improve overall stock levels.

    African Private Equity and Venture Capital Association 23 November

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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 Newsbrief 27 November

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Weekly Africa Newsbrief 27 November

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

Leriba Africa Newsbrief

 

 Week commencing 27 Novemeber 2017

 

 

new-home-1530833_1280

 

 

 

 

 

 

 

 

 

 

Kenya

Milost backs Kings Pride Properties in multimillion dollar deal

Kings Pride Properties, a Nairobi-based real estate development and investment company, has signed a financing term sheet of $450m with Milost Global, a New York-based private equity firm. This is a working capital and development facility for the company which is being provided as a combination of debt and equity, of which $150m will go to equity facility with the remainder going towards the debt facility. The funding will go towards helping Kings Pride expand into the East African region.

Liquid Africa 20 November

 

 

Mozambique

Portucel to build pulp mill

Paper pulp producer Portucel Mozambique – a subsidiary of Portuguese pulp manufacturer, The Navigator Company – is set to build a $3bn pulp mill in Ile-Namarroi. The mill will have a production capacity of 1.5Mt and a biomass power generation plant. Portucel will finance 80% of the project, with the International Finance Corporation expected to cover the remaining 20%. It is expected to be operational by 2023 and increase the global pulp production of The Navigator Company to more than double its capacity of 1,440kt per annum.

Club of Mozambique 22 November

 

 

Egypt

Groupe PSA, Scope to partner with Mansour

French automobile manufacturer Groupe PSA is finalising the conditions of its partnership with multinational conglomerate Mansour Group, to take effect early in 2018. After launching an open import and distribution contract bid in Egypt for its Peugeot products earlier in the year, the vehicle manufacturer, along with Mansour Group and Dubai-based investment firm, Scope Investments, was awarded the deal to distribute Peugot products in Egypt.

Daily News Egypt 22 November

 

 

Uganda

Chinese firm awarded land in construction deal

President Yoweri Museveni has offered land to Chinese energy firm Sunmaker Energy to build an oil and gas vocational institute to train Ugandans in internationally certified vocational courses. The institute will train 1,600 students a year in oil and gas skills, including health, safety and environmental management.

Daily Monitor Uganda 23 November

 

XSML announces healthcare investment

Multinational fund manager XSML announced its fifth investment in Ugandan pharmacy network Ecopharm. The firm has a network of eight pharmacies in Kampala. The financing will enable the network to expand its footprint across Kampala and improve overall stock levels.

African Private Equity and Venture Capital Association 23 November