Weekly Africa Newsbriefs 28 May

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    Leriba Africa Newsbrief

     

     Week commencing 28 May 2018

     



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    Egypt

    Russia, Egypt sign $190m industrial zone deal

    Russia and Egypt have signed a deal to build and maintain a $190m Russian industrial zone in the Suez Canal region in Egypt. The 525-hectare zone is earmarked for manufacturing competitive high-tech products using Russian industrial assembly and production schemes. Under the agreement, Egypt will provide residents of the industrial zone with a simplified and stable tax regime. The funding, projected to span a 50-year period, will come from the Russian government.

    The New Times 24 May

     

     

    Kenya

    Actis to buy 88% stake in wind project

    London-based private equity company Actis will take an 88% stake in the 100MW Kipeto Wind Power project after buying out most of the project’s shareholders. Craftskills Wind Energy, one of the farm’s founding firms, will cede some shareholding to Actis and will be left with 12% of the project from an initial 20%.

    Bloomberg 23 May

     

     

    US firm to invest $70m in subsidiary’s factory

    US confectionary firm Mars Incorporated is set to open a $70m factory in Athi River, as part of the ongoing expansion of Wrigley, its chewing gum subsidiary. Once operational, the Wrigley factory will produce about 7.8-billion pellets of chewing gum annually. Wrigley’s Nairobi subsidiary is the manufacturer of various confectionary brands including Juicy Fruit and Orbit chewing gum.

    Daily Nation 23 May

     

     

    Chinese firms to fix Nairobi roads

    Three Chinese engineering firms have been awarded contracts worth $40m to repair roads in the country’s capital, which were damaged by recent flash floods. Following an agreement with the government, Sinohydro Ltd, China Road & Bridge Corporation and China Wu Yi are set to begin repair works.

    Business Daily 25 May

     

     

    Zimbabwe

    Charity foundation to invest in SMEs

    Canadian charity organisation Fig Tree Foundation intends to invest $3m in the next five years in small businesses in Goromonzi District in an effort to uplift people’s livelihoods by improving their ability to generate an income. The foundation has already disbursed $500,000 towards various rural projects in northern Goromonzi. The foundation will target a total of 5,000 people who will receive financial and business assistance. Over 25,000 people are expected to benefit from the funding.

    The Herald Zimbabwe 22 May

      

     

    Morocco

    RAM, AlItalia Airline sign code-sharing agreement

    Italy’s flag carrier, Alitalia, and Morocco’s Royal Air Maroc (RAM) have signed a code-sharing agreement allowing RAM to increase its round-trip flights to 17 Italian destinations. The agreement will see RAM’s clients benefit from Alitalia direct flights between Casablanca and Rome, and various other Italian destinations. RAM will provide 11 new flights to Italy, on top of the six already connecting Morocco with six Italian cities.  Alitalia will also expand its route into Morocco to cover 12 cities.

    Morocco World News 23 May

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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 28 May

Leriba in the Media
>>
Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 28 May

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

Leriba Africa Newsbrief

 

 Week commencing 28 May 2018

 



suburb-1889134_1280

 

 

 

 

 

 

 

 

 

 

 

Egypt

Russia, Egypt sign $190m industrial zone deal

Russia and Egypt have signed a deal to build and maintain a $190m Russian industrial zone in the Suez Canal region in Egypt. The 525-hectare zone is earmarked for manufacturing competitive high-tech products using Russian industrial assembly and production schemes. Under the agreement, Egypt will provide residents of the industrial zone with a simplified and stable tax regime. The funding, projected to span a 50-year period, will come from the Russian government.

The New Times 24 May

 

 

Kenya

Actis to buy 88% stake in wind project

London-based private equity company Actis will take an 88% stake in the 100MW Kipeto Wind Power project after buying out most of the project’s shareholders. Craftskills Wind Energy, one of the farm’s founding firms, will cede some shareholding to Actis and will be left with 12% of the project from an initial 20%.

Bloomberg 23 May

 

 

US firm to invest $70m in subsidiary’s factory

US confectionary firm Mars Incorporated is set to open a $70m factory in Athi River, as part of the ongoing expansion of Wrigley, its chewing gum subsidiary. Once operational, the Wrigley factory will produce about 7.8-billion pellets of chewing gum annually. Wrigley’s Nairobi subsidiary is the manufacturer of various confectionary brands including Juicy Fruit and Orbit chewing gum.

Daily Nation 23 May

 

 

Chinese firms to fix Nairobi roads

Three Chinese engineering firms have been awarded contracts worth $40m to repair roads in the country’s capital, which were damaged by recent flash floods. Following an agreement with the government, Sinohydro Ltd, China Road & Bridge Corporation and China Wu Yi are set to begin repair works.

Business Daily 25 May

 

 

Zimbabwe

Charity foundation to invest in SMEs

Canadian charity organisation Fig Tree Foundation intends to invest $3m in the next five years in small businesses in Goromonzi District in an effort to uplift people’s livelihoods by improving their ability to generate an income. The foundation has already disbursed $500,000 towards various rural projects in northern Goromonzi. The foundation will target a total of 5,000 people who will receive financial and business assistance. Over 25,000 people are expected to benefit from the funding.

The Herald Zimbabwe 22 May

  

 

Morocco

RAM, AlItalia Airline sign code-sharing agreement

Italy’s flag carrier, Alitalia, and Morocco’s Royal Air Maroc (RAM) have signed a code-sharing agreement allowing RAM to increase its round-trip flights to 17 Italian destinations. The agreement will see RAM’s clients benefit from Alitalia direct flights between Casablanca and Rome, and various other Italian destinations. RAM will provide 11 new flights to Italy, on top of the six already connecting Morocco with six Italian cities.  Alitalia will also expand its route into Morocco to cover 12 cities.

Morocco World News 23 May