Weekly Africa Newsbriefs 29 January

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    Leriba Africa Newsbrief

     

     Week commencing 29 January 2018

     

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    Morocco

    European Bank to finance green projects

    The state and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding to prepare a co-financing product dedicated to green projects led by SMEs and very small businesses. Since 2013, the European Bank has granted more than €1.5bn in loans to Morocco for private sector financing.

    Morocco World News 25 January

     

    Republic of Guinea

    InfraCo Africa to develop solar project

    InfraCo Africa, part of the Infrastructure Development Group, will invest up to $3.1m to fund early-stage development costs for the Khoumagueli Solar PV project and provide resources through its contracted developer, Aldwych Africa Developments Ltd. The firm signed a joint development agreement with Solvéo Energie, Solvéo Guinea Renewable Energy and Solvéo International Investments for a 45% equity stake in the solar project. Khoumagueli will be Guinea’s first grid-connected solar power plant, adding 40MW of renewable energy to the country’s 566MW national grid. 

    Africa Global Funds 25 January

     

    Niger

    Injaro and BIO in Niger poultry deal

    Ghanaian investment advisory firm Injaro Investments and Belgian Investment Company for Developing Countries (BIO) have teamed up to build an egg production farm with an annual capacity of more than 35-million eggs for AviNiger, a purpose-built poultry farm tasked with ensuring animal welfare. This investment will make AviNiger the largest egg producer in Niger and will seek to contribute towards food security in the country.

    Africa Global Funds 24 January

     

    Ethiopia

    DEG invests in mobile money technology provider

    DEG, a German development finance institution and a subsidiary of KfW Group, has invested €4m in M-BIRR, a cashless money transfer and payment service in Ethiopia. Other investors include the European Investment Bank, while Finnish development finance company Finnfund has been a shareholder since 2012. The new capital is earmarked for business expansion and for increasing outreach in the country. It will create 60 new jobs, with additional indirect employment of over 400 agents.

    Liquid Africa 26 January

     

    Pan Africa

    Off Grid Electric secures funding to expand African footprint

    Off Grid Electric – a rooftop solar provider in Africa, has secured $55m in a funding initiative led by healthcare IT services provider Helios, with support from GE Ventures and existing investors across Africa. Off Grid Electric and UK energy firm EDF will expand their partnership into West Africa by offering off-grid solar solutions to households in Ghana and support its continued expansion and new product development. The firm already provides power to more than 150,000 homes and businesses across Tanzania, Rwanda, Côte d’Ivoire and Ghana under its consumer brand, Zola.

    Tech Moran 20 January

     

    JP Morgan plans African expansion  

    JP Morgan plans to expand its African presence into countries including Ghana and Kenya. The investment bank has unveiled a $20bn investment plan which will see it hike wages, hire more staff and open new branches as it takes advantage of changes to US tax laws and a more favourable regulatory environment. The five-year plan will see the US bank ramp up overseas investment in addition to its domestic growth plans.

    Joy Online 24 January

     

    Nigeria

    Olco opens shop

    German based Olco Multibusiness, a company focused on crowd funding, job search and educational consultancy, has opened offices in Nigeria. The company will carry out its operations through three subsidiaries which include Fundmie, a local crowd funding portal, Workmie, a job search portal, and its own Olco Study, a programme that facilitates tuition-free educational opportunities. The firm intends to use the event to create awareness about crowd-funding in the Nigerian market.

    The Vanguard 24 January

     

    Egypt

    First Group to launch two malls

    Global real estate developer First Group will launch two malls containing administrative and commercial units and clinics in February. The first mall is in its Kenz Compound project and the second in Gamal Abdel Nasser Axis. The company has completed the third phase of KENZ Compound and is developing the fourth phase on 120,000 m² for an estimated $42.4m and has delivered more than 300 units thus far.

    Daily News Egypt 22 January

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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 29 January

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Weekly newsbriefs

Weekly Africa Newsbriefs 29 January

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

Leriba Africa Newsbrief

 

 Week commencing 29 January 2018

 

eden-1746784_1280

 

 

 

 

 

 

 

 

 

 

Morocco

European Bank to finance green projects

The state and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding to prepare a co-financing product dedicated to green projects led by SMEs and very small businesses. Since 2013, the European Bank has granted more than €1.5bn in loans to Morocco for private sector financing.

Morocco World News 25 January

 

Republic of Guinea

InfraCo Africa to develop solar project

InfraCo Africa, part of the Infrastructure Development Group, will invest up to $3.1m to fund early-stage development costs for the Khoumagueli Solar PV project and provide resources through its contracted developer, Aldwych Africa Developments Ltd. The firm signed a joint development agreement with Solvéo Energie, Solvéo Guinea Renewable Energy and Solvéo International Investments for a 45% equity stake in the solar project. Khoumagueli will be Guinea’s first grid-connected solar power plant, adding 40MW of renewable energy to the country’s 566MW national grid. 

Africa Global Funds 25 January

 

Niger

Injaro and BIO in Niger poultry deal

Ghanaian investment advisory firm Injaro Investments and Belgian Investment Company for Developing Countries (BIO) have teamed up to build an egg production farm with an annual capacity of more than 35-million eggs for AviNiger, a purpose-built poultry farm tasked with ensuring animal welfare. This investment will make AviNiger the largest egg producer in Niger and will seek to contribute towards food security in the country.

Africa Global Funds 24 January

 

Ethiopia

DEG invests in mobile money technology provider

DEG, a German development finance institution and a subsidiary of KfW Group, has invested €4m in M-BIRR, a cashless money transfer and payment service in Ethiopia. Other investors include the European Investment Bank, while Finnish development finance company Finnfund has been a shareholder since 2012. The new capital is earmarked for business expansion and for increasing outreach in the country. It will create 60 new jobs, with additional indirect employment of over 400 agents.

Liquid Africa 26 January

 

Pan Africa

Off Grid Electric secures funding to expand African footprint

Off Grid Electric – a rooftop solar provider in Africa, has secured $55m in a funding initiative led by healthcare IT services provider Helios, with support from GE Ventures and existing investors across Africa. Off Grid Electric and UK energy firm EDF will expand their partnership into West Africa by offering off-grid solar solutions to households in Ghana and support its continued expansion and new product development. The firm already provides power to more than 150,000 homes and businesses across Tanzania, Rwanda, Côte d’Ivoire and Ghana under its consumer brand, Zola.

Tech Moran 20 January

 

JP Morgan plans African expansion  

JP Morgan plans to expand its African presence into countries including Ghana and Kenya. The investment bank has unveiled a $20bn investment plan which will see it hike wages, hire more staff and open new branches as it takes advantage of changes to US tax laws and a more favourable regulatory environment. The five-year plan will see the US bank ramp up overseas investment in addition to its domestic growth plans.

Joy Online 24 January

 

Nigeria

Olco opens shop

German based Olco Multibusiness, a company focused on crowd funding, job search and educational consultancy, has opened offices in Nigeria. The company will carry out its operations through three subsidiaries which include Fundmie, a local crowd funding portal, Workmie, a job search portal, and its own Olco Study, a programme that facilitates tuition-free educational opportunities. The firm intends to use the event to create awareness about crowd-funding in the Nigerian market.

The Vanguard 24 January

 

Egypt

First Group to launch two malls

Global real estate developer First Group will launch two malls containing administrative and commercial units and clinics in February. The first mall is in its Kenz Compound project and the second in Gamal Abdel Nasser Axis. The company has completed the third phase of KENZ Compound and is developing the fourth phase on 120,000 m² for an estimated $42.4m and has delivered more than 300 units thus far.

Daily News Egypt 22 January