Weekly Africa Newsbriefs 3 July

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 3 July

Leriba in the Media
>>
Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 3 July

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

Leriba Africa Newsbrief

 

 Week commencing 26 June 2017

 

open-pit-mining-920200_1280

 

 

 

 

 

 

 

 

 

 

Ghana

China signs $10bn bauxite project agreement

Ghana has signed an agreement with China that may culminate in the development of a $10bn bauxite venture that will include the construction of alumina refineries and railway infrastructure. The two countries agreed to a memorandum of understanding in which China will provide funding for the project to exploit the West African nation’s 960-million metric tons of bauxite deposits, which will generate an export value of around $460bn once refined.

Bloomberg 28 June

 

Kenya

Chinese firm bags deal for studies to extend rail to JKIA

China Road and Bridge Corporation has been awarded a contract to conduct feasibility studies to expand the standard gauge railway to Jomo Kenyatta International Airport and the city centre. The studies will set the stage for a fresh financing round of the rail airport link.

Business Daily Africa 27 June

 

Tanzania

German firm to invest over $15m in Tanzania

Construction firm KNAUF Gypsum is planning to invest more than $15m in Tanzania in the next few years. The company, which started operating in Tanzania three years ago, has already invested close to $10m into its gypsum operations. Most of its raw materials are acquired locally and the gypsum stone will be mined in the south of Tanzania.

Daily News 28 June

 

Ethiopia

Indian tech company set to green local industries

Arvind Envisol has set up a Zero Liquid Discharge water treatment plant at Hawassa Industrial Park. The plant, one of the largest in Africa, has a capacity of treating 11-million litres of waste water a day. With plans to develop 10 mega industrial parks, the government of Ethiopia has decided to use waste treatment technology – zero liquid discharge technology (ZLD) – in the new industrial parks. ZLD will ensure the industrial parks use a minimum amount of ground water with no liquid discharge outside the park.

New Business Ethiopia 26 June

 

Pan Africa

Africa China Banking Centre to be rolled out in African growth hubs

Standard Bank has established dedicated banking centres to link African and Chinese clients with China’s highly networked digital banking and customer knowledge systems. The service is strategically placed leveraging off its industrial Commercial Bank of China ties.

Zambia Business Times 29 June