Weekly Africa Newsbriefs 11 June

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    Leriba Africa Newsbrief

     

     Week commencing 11 June 2018

    Ethiopisa

     

     

     

     

     

     

     

     

     

     

    Ethiopia

    Open for business

    Ethiopia, Africa’s second-most-populous country and the continent’s fastest growing economy, is inviting big business to cash in. For so long a closed shop, the Horn of Africa nation last week invited foreign investors to buy stakes in state-owned telecoms, shipping, power-generation and aviation companies, a rare opportunity to access such a large market. The bonanza will extend to railways, sugar mills and industrial parks, with the top brass of the ruling party embarking on long-awaited market reforms.

    Business Day 7 June

     

    Kenya

    Billionaires build stake in Safaricom

    Tanzanian billionaires Aunali and Sajjad Rajabali have bought 10-million shares of Safaricom worth US$2 926 579, becoming the third-largest individual investors in the telecommunications firm listed on the Nairobi Stock Exchange. Safaricom is the most profitable company in Kenya, having dominated the various segments in the telecommunications market including voice, mobile data and mobile cash transfers.

    Daily Nation 11 June

     

    West Africa

    US backing for solar projects

    With financial backing from the US government, solar developer Gigawatt Global Cooperatief signed a deal with the 15-nation Economic Community of West African States (Ecowas) to build $1bn worth of renewable energy projects in the region. The US is supporting the project through its Power Africa initiative set up in 2013 under President Barack Obama’s administration.

    Business Day 8 June

     

    Morocco

    Eaton to distribute products through Schiele

    Eaton, a world leader in electrical power management, and Schiele Morocco, a distributor of electrical and electronic products and an industrial engineering firm, have signed a strategic partnership agreement. The agreement will allow Eaton to sell its products and solutions throughout Morocco, primarily to the service and industrial sectors, for distribution of electrical products and low voltage power plants.

     

    Morocco World News 1 June

    Pan Africa

    LSE attracting African companies

    JPMorgan Chase & Company is having one of its busiest years yet for African companies looking to trade their shares in both London and local equity markets such as the Johannesburg Stock Exchange. The New York-based investment bank has seen interest from at least six companies considering dual listings

    Bloomberg 7 June

     

     

     

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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 11 June

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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 11 June

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

Leriba Africa Newsbrief

 

 Week commencing 11 June 2018

Ethiopisa

 

 

 

 

 

 

 

 

 

 

Ethiopia

Open for business

Ethiopia, Africa’s second-most-populous country and the continent’s fastest growing economy, is inviting big business to cash in. For so long a closed shop, the Horn of Africa nation last week invited foreign investors to buy stakes in state-owned telecoms, shipping, power-generation and aviation companies, a rare opportunity to access such a large market. The bonanza will extend to railways, sugar mills and industrial parks, with the top brass of the ruling party embarking on long-awaited market reforms.

Business Day 7 June

 

Kenya

Billionaires build stake in Safaricom

Tanzanian billionaires Aunali and Sajjad Rajabali have bought 10-million shares of Safaricom worth US$2 926 579, becoming the third-largest individual investors in the telecommunications firm listed on the Nairobi Stock Exchange. Safaricom is the most profitable company in Kenya, having dominated the various segments in the telecommunications market including voice, mobile data and mobile cash transfers.

Daily Nation 11 June

 

West Africa

US backing for solar projects

With financial backing from the US government, solar developer Gigawatt Global Cooperatief signed a deal with the 15-nation Economic Community of West African States (Ecowas) to build $1bn worth of renewable energy projects in the region. The US is supporting the project through its Power Africa initiative set up in 2013 under President Barack Obama’s administration.

Business Day 8 June

 

Morocco

Eaton to distribute products through Schiele

Eaton, a world leader in electrical power management, and Schiele Morocco, a distributor of electrical and electronic products and an industrial engineering firm, have signed a strategic partnership agreement. The agreement will allow Eaton to sell its products and solutions throughout Morocco, primarily to the service and industrial sectors, for distribution of electrical products and low voltage power plants.

 

Morocco World News 1 June

Pan Africa

LSE attracting African companies

JPMorgan Chase & Company is having one of its busiest years yet for African companies looking to trade their shares in both London and local equity markets such as the Johannesburg Stock Exchange. The New York-based investment bank has seen interest from at least six companies considering dual listings

Bloomberg 7 June