Weekly Africa Newsbriefs 30 April

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    Leriba Africa Newsbrief

     

     Week commencing 30 April 2018

     


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    Zimbabwe

    Chinese firm, General Electric in talks over Batoka

    An unnamed Chinese firm linked to the construction of the $3bn Batoka Gorge Hydroelectric Scheme is in discussions with US conglomerate General Electric (GE) for a possible partnership on the mega project. Situated about 60km downstream of Victoria Falls on the Zambezi River, the project is expected to improve both the power supply of both Zimbabwe and Zambia and also feed into the Southern African power pool. The firms have met casually to get a sense of progress and expectations from the two governments. Formal discussions with government have yet to take place.

    The Herald Zimbabwe 26 April

     

    $300m solar plant for Vic Falls

    Multinational sustainable development firm Southpole Consulting has secured funding of $300m to construct a 125MW solar power plant at Victoria Falls. The firm has made an application to the Zimbabwean Energy Regulatory Authority for the project, conceived primarily for self-consumption, to supply power to its data centre and a commuter rail electrification project. However, the facility may also provide power regionally.

    Daily News Zimbabwe 21 April

     

     

    Rwanda

    DOB Equity makes first investment in Rwanda

    DOB Equity, a Dutch family-backed impact investor, has completed its first investment in grain trading company Sarura Commodities. Sarura links smallholder farmers to reliable input and service providers to increase grain quality and farmer productivity. The investment will allow Sarura to strengthen its storage infrastructure, support its sourcing platform and scale up its operations in Rwanda’s niche premium grain market.

    Private Equity Wire 24 April

     

     

    Egypt

    IHG signs double hotel deal with Arabia Hotels

    InterContinental Hotels Group (IHG) has signed a deal for two new hotels in Giza, in partnership with Arabia Hotels, a subsidiary of Arabia Holding. The new development aligns with IHG’s strategy for expansion across the Middle East and North Africa. Scheduled to open in 2023, and with rooms directly overlooking the Pyramids, the Holiday Inn Giza Sun Capital and Staybridge Suites Giza Sun Capital will be the first IHG hotels in the area. Both hotels will be part of Sun Capital, a mixed-use project that will include the largest commercial area in Egypt, a luxury commercial mall, an Egyptian cultural themed park and an international university and school.

    Egypt Business Directory 23April

     

     

    Nigeria

    Unido unveils $50m industrial development programme

    The United Nations Industrial Development Organisation (Unido) is set to launch a four-year programme to drive inclusive and sustainable industrial development in Nigeria. The programme, estimated at $50m, is expected to begin in July and has identified intervention plans in nine thematic components: industrial governance; research and statistics; micro, small and medium enterprises development’ special economic zones; renewable energy development; and other sectors including agriculture and mining.

    Vanguard 25 April

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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 30 April

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 30 April

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

Leriba Africa Newsbrief

 

 Week commencing 30 April 2018

 


dam-929406_1280

 

 

 

 

 

 

 

 

 

Zimbabwe

Chinese firm, General Electric in talks over Batoka

An unnamed Chinese firm linked to the construction of the $3bn Batoka Gorge Hydroelectric Scheme is in discussions with US conglomerate General Electric (GE) for a possible partnership on the mega project. Situated about 60km downstream of Victoria Falls on the Zambezi River, the project is expected to improve both the power supply of both Zimbabwe and Zambia and also feed into the Southern African power pool. The firms have met casually to get a sense of progress and expectations from the two governments. Formal discussions with government have yet to take place.

The Herald Zimbabwe 26 April

 

$300m solar plant for Vic Falls

Multinational sustainable development firm Southpole Consulting has secured funding of $300m to construct a 125MW solar power plant at Victoria Falls. The firm has made an application to the Zimbabwean Energy Regulatory Authority for the project, conceived primarily for self-consumption, to supply power to its data centre and a commuter rail electrification project. However, the facility may also provide power regionally.

Daily News Zimbabwe 21 April

 

 

Rwanda

DOB Equity makes first investment in Rwanda

DOB Equity, a Dutch family-backed impact investor, has completed its first investment in grain trading company Sarura Commodities. Sarura links smallholder farmers to reliable input and service providers to increase grain quality and farmer productivity. The investment will allow Sarura to strengthen its storage infrastructure, support its sourcing platform and scale up its operations in Rwanda’s niche premium grain market.

Private Equity Wire 24 April

 

 

Egypt

IHG signs double hotel deal with Arabia Hotels

InterContinental Hotels Group (IHG) has signed a deal for two new hotels in Giza, in partnership with Arabia Hotels, a subsidiary of Arabia Holding. The new development aligns with IHG’s strategy for expansion across the Middle East and North Africa. Scheduled to open in 2023, and with rooms directly overlooking the Pyramids, the Holiday Inn Giza Sun Capital and Staybridge Suites Giza Sun Capital will be the first IHG hotels in the area. Both hotels will be part of Sun Capital, a mixed-use project that will include the largest commercial area in Egypt, a luxury commercial mall, an Egyptian cultural themed park and an international university and school.

Egypt Business Directory 23April

 

 

Nigeria

Unido unveils $50m industrial development programme

The United Nations Industrial Development Organisation (Unido) is set to launch a four-year programme to drive inclusive and sustainable industrial development in Nigeria. The programme, estimated at $50m, is expected to begin in July and has identified intervention plans in nine thematic components: industrial governance; research and statistics; micro, small and medium enterprises development’ special economic zones; renewable energy development; and other sectors including agriculture and mining.

Vanguard 25 April