Weekly Africa Newsbriefs 4 December

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    Leriba Africa Newsbrief

     

     Week commencing 4 December 2017

     

     

    brewery-1271858_1280

     

     

     

     

     

     

     

     

     

     

     

    Nigeria

    European-based medical diagnostic firm Synlab has purchased, for an undisclosed amount, a majority stake in pathology services firm, PathCare, in a development that has signalled investment opportunities to the private medical laboratory market and public-private partnerships. It is also seen as a boost to providing patients and doctors with greater access to a full range of medical diagnostic services.

    The Guardian (Nigeria) 4 December

     

    AB INBEV to set up Africa’s second largest brewing facility

    AB Inbev will be investing more than $250m to construct a brewing facility outside of Lagos to expand its operations on the continent. The company has also announced intentions to merge its three Nigerian subsidiaries, International Breweries, Intafact Beverages and Pabod Breweries, to improve efficiency.

    The Guardian (Nigeria) 28 November

     

    Tunisia

    Abraaj buys Tunisie Telecom from Dubai Holdings

    Private equity firm Abraaj Group has bought, for an undisclosed sum, a 35% stake in the state-controlled Tunisie Telecom from multinational retail group Dubai Holdings’ telecoms subsidiary. In 2006, Dubai Holding’s Emirates International Telecommunications bought the stake for $2.25bn.

    Reuters 27 November

     

    Pan Africa

    CDC and CIC Capital to invest in ONOMO Hotels

    ONOMO Hotels will receive €106m from UK Development Finance Institution subsidiary CDC Group and the Chinese Investment Corporation. Business development firm Batipart remains the controlling shareholder. The new development will enable ONOMO to expand its presence to eight countries on the continent with 10 hotels and more than 1,400 rooms by year end, and reach a pan-African portfolio of over 20 business-oriented and affordable hotels.

    Africa Capital Digest 3 December

     

    Mozambique

    Phoenix Group expansion to target Mozambique, Benin & Ivory Coast

    United Arab Emirates-based food company Phoenix Group announced a $205m expansion of its rice business into Asia and Africa. The expansion into Mozambique, Benin, Ivory Coast and India is aimed at doubling the retail distribution company’s turnover in the next three to five years, which would make it the world’s largest rice business by volume.

    Club of Mozambique 29 November

     

    Pan Africa

    CDC and CIC Capital to invest in ONOMO Hotels

    ONOMO Hotels will receive €106m from UK Development Finance Institution subsidiary, CDC Group and the Chinese Investment Corporation. Business development firm Batipart remains the controlling shareholder. The new development will enable ONOMO to expand its presence to eight countries on the continent with 10 hotels and over 1,400 rooms by year end, and reach a pan-African portfolio of over 20 business-oriented and affordable hotels.

    Africa Capital Digest 3 December

     

    Mozambique

    Phoenix Group expansion to target Mozambique, Benin & Ivory Coast

    United Arab Emirates based food company Phoenix Group announced a $205m expansion of their rice business into Asia and Africa. The expansion into Mozambique, Benin and Ivory Coast and India is aimed at doubling the retail distribution company’s turnover in the next three to five years, which would make it the world’s largest rice business by volume.

    Club of Mozambique 29 November

     

     

    Tunisia

    Abraaj buys Tunisie Telecom from Dubai Holdings

    Private equity firm Abraaj Group has bought, for an undisclosed sum, multinational retail organisation Dubai Holdings’ telecoms arm its 35% stake in state-controlled Tunisie Telecom. In 2006 Dubai Holding’s Emirates International Telecommunications (EIT) bought the stake for $2.25 billion. The entry of the new partner will add to the development of the company’s activity.

    Reuters 27 November

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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 4 December

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 4 December

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

Leriba Africa Newsbrief

 

 Week commencing 4 December 2017

 

 

brewery-1271858_1280

 

 

 

 

 

 

 

 

 

 

 

Nigeria

European-based medical diagnostic firm Synlab has purchased, for an undisclosed amount, a majority stake in pathology services firm, PathCare, in a development that has signalled investment opportunities to the private medical laboratory market and public-private partnerships. It is also seen as a boost to providing patients and doctors with greater access to a full range of medical diagnostic services.

The Guardian (Nigeria) 4 December

 

AB INBEV to set up Africa’s second largest brewing facility

AB Inbev will be investing more than $250m to construct a brewing facility outside of Lagos to expand its operations on the continent. The company has also announced intentions to merge its three Nigerian subsidiaries, International Breweries, Intafact Beverages and Pabod Breweries, to improve efficiency.

The Guardian (Nigeria) 28 November

 

Tunisia

Abraaj buys Tunisie Telecom from Dubai Holdings

Private equity firm Abraaj Group has bought, for an undisclosed sum, a 35% stake in the state-controlled Tunisie Telecom from multinational retail group Dubai Holdings’ telecoms subsidiary. In 2006, Dubai Holding’s Emirates International Telecommunications bought the stake for $2.25bn.

Reuters 27 November

 

Pan Africa

CDC and CIC Capital to invest in ONOMO Hotels

ONOMO Hotels will receive €106m from UK Development Finance Institution subsidiary CDC Group and the Chinese Investment Corporation. Business development firm Batipart remains the controlling shareholder. The new development will enable ONOMO to expand its presence to eight countries on the continent with 10 hotels and more than 1,400 rooms by year end, and reach a pan-African portfolio of over 20 business-oriented and affordable hotels.

Africa Capital Digest 3 December

 

Mozambique

Phoenix Group expansion to target Mozambique, Benin & Ivory Coast

United Arab Emirates-based food company Phoenix Group announced a $205m expansion of its rice business into Asia and Africa. The expansion into Mozambique, Benin, Ivory Coast and India is aimed at doubling the retail distribution company’s turnover in the next three to five years, which would make it the world’s largest rice business by volume.

Club of Mozambique 29 November

 

Pan Africa

CDC and CIC Capital to invest in ONOMO Hotels

ONOMO Hotels will receive €106m from UK Development Finance Institution subsidiary, CDC Group and the Chinese Investment Corporation. Business development firm Batipart remains the controlling shareholder. The new development will enable ONOMO to expand its presence to eight countries on the continent with 10 hotels and over 1,400 rooms by year end, and reach a pan-African portfolio of over 20 business-oriented and affordable hotels.

Africa Capital Digest 3 December

 

Mozambique

Phoenix Group expansion to target Mozambique, Benin & Ivory Coast

United Arab Emirates based food company Phoenix Group announced a $205m expansion of their rice business into Asia and Africa. The expansion into Mozambique, Benin and Ivory Coast and India is aimed at doubling the retail distribution company’s turnover in the next three to five years, which would make it the world’s largest rice business by volume.

Club of Mozambique 29 November

 

 

Tunisia

Abraaj buys Tunisie Telecom from Dubai Holdings

Private equity firm Abraaj Group has bought, for an undisclosed sum, multinational retail organisation Dubai Holdings’ telecoms arm its 35% stake in state-controlled Tunisie Telecom. In 2006 Dubai Holding’s Emirates International Telecommunications (EIT) bought the stake for $2.25 billion. The entry of the new partner will add to the development of the company’s activity.

Reuters 27 November