Weekly Africa Newsbriefs 5 February

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    Leriba Africa Newsbrief

     

     Week commencing 5 February 2018

     

    solar-panels-2016467_1280

     

     

     

     

     

     

     

     

     

     

    Mozambique

    German company to build pay-as-you-go solar grid

    Cronimet Mining, in partnership with local energy firm Motse, is planing to build a mini solar energy distribution grid with a pay-as-you-go system, on the island of Chiloane. Under a memorandum of understanding signed with the Mozambican Energy Fund, the two companies plan to finance and build the mini-grid and guarantee the production of 200MW of electricity. The partners hope the pilot project will demonstrate the economic viability of pay-as-you-go mini solar grids.

    Club of Mozambique 31 January

     

    Nigeria

    CITA, Puma sign pact to boost aviation fuel supply

    CITA Petroleum, an indigenous aviation fuel handling company, has signed a pact with Singaporean oil company Puma Energy in a bid to enhance Jet-A1 supply in the aviation industry. There are several problems with regards to local aviation fuel supply, including zero refining capacity and full dependence on imported fuel, which is affected by foreign exchange availability. The new deal is expected to create supply and availability to tackle the perennial shortage and distribution logistics challenges affecting the nation’s aviation sector.

    The Guardian Nigeria 24 January

     

    Mali

    Akuo secures funding for solar plant

    French independent power producer Akuo Energy has secured €78m in financing to build the 50MW Akuo Kita Solar Photovoltaic (PV) power plant in southern Mali. The plant will be the first solar PV power station in Mali owned and run by a private sector company. It will also be the largest solar farm in west Africa. Akuo Kita Solar will sell its power to Electricité du Mali, the national utility, under a 28-year power purchase agreement.

    Engineering News 29 January

     

    Kenya

    Chinese firms awarded Turkana power line tender

    A consortium of Chinese companies called the NARI Group Corporation and Power China Guizhou Engineering Company has been awarded a $94m contract to complete the transmission line linking Lake Turkana wind power to the national grid by 31 August, following the termination of Spanish energy firm Isolux Corsán’s contract in 2017. The 428km power line is 70% complete. Once complete, it will evacuate wind electricity from Marsabit to Suswa substation in Narok.

    Daily Nation 31 January

     

    Japanese firm wins Ngong road tender

    Japanese contractor World Kogyo Kaihatsu has won the tender for the second phase of dualling of Nairobi’s Ngong Road from Prestige Plaza to Dagoretti Corner. The 2,42km stretch will be built at a cost of $23m, which will come from a grant from the Japanese government. The firm estimates the project will take two years to complete and is set to start in early March.

    Daily Nation 29 January

     

    Morocco

    French automotive supplier opens in Tangier

    Acome’s automotive products and systems division has opened a new industrial plant in the Tangier Free Zone business park. The site will produce automobile cables. The factory, which cost €19m to set up, will export 75% of its output. Once up and running, the Moroccan automotive industry will be producing about 25% of the automotive cables consumed in Europe. It will ultimately have the capacity to deliver 1.5 million vehicles for the Moroccan and international market.

    Morocco World News 28 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 5 February

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 5 February

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

Leriba Africa Newsbrief

 

 Week commencing 5 February 2018

 

solar-panels-2016467_1280

 

 

 

 

 

 

 

 

 

 

Mozambique

German company to build pay-as-you-go solar grid

Cronimet Mining, in partnership with local energy firm Motse, is planing to build a mini solar energy distribution grid with a pay-as-you-go system, on the island of Chiloane. Under a memorandum of understanding signed with the Mozambican Energy Fund, the two companies plan to finance and build the mini-grid and guarantee the production of 200MW of electricity. The partners hope the pilot project will demonstrate the economic viability of pay-as-you-go mini solar grids.

Club of Mozambique 31 January

 

Nigeria

CITA, Puma sign pact to boost aviation fuel supply

CITA Petroleum, an indigenous aviation fuel handling company, has signed a pact with Singaporean oil company Puma Energy in a bid to enhance Jet-A1 supply in the aviation industry. There are several problems with regards to local aviation fuel supply, including zero refining capacity and full dependence on imported fuel, which is affected by foreign exchange availability. The new deal is expected to create supply and availability to tackle the perennial shortage and distribution logistics challenges affecting the nation’s aviation sector.

The Guardian Nigeria 24 January

 

Mali

Akuo secures funding for solar plant

French independent power producer Akuo Energy has secured €78m in financing to build the 50MW Akuo Kita Solar Photovoltaic (PV) power plant in southern Mali. The plant will be the first solar PV power station in Mali owned and run by a private sector company. It will also be the largest solar farm in west Africa. Akuo Kita Solar will sell its power to Electricité du Mali, the national utility, under a 28-year power purchase agreement.

Engineering News 29 January

 

Kenya

Chinese firms awarded Turkana power line tender

A consortium of Chinese companies called the NARI Group Corporation and Power China Guizhou Engineering Company has been awarded a $94m contract to complete the transmission line linking Lake Turkana wind power to the national grid by 31 August, following the termination of Spanish energy firm Isolux Corsán’s contract in 2017. The 428km power line is 70% complete. Once complete, it will evacuate wind electricity from Marsabit to Suswa substation in Narok.

Daily Nation 31 January

 

Japanese firm wins Ngong road tender

Japanese contractor World Kogyo Kaihatsu has won the tender for the second phase of dualling of Nairobi’s Ngong Road from Prestige Plaza to Dagoretti Corner. The 2,42km stretch will be built at a cost of $23m, which will come from a grant from the Japanese government. The firm estimates the project will take two years to complete and is set to start in early March.

Daily Nation 29 January

 

Morocco

French automotive supplier opens in Tangier

Acome’s automotive products and systems division has opened a new industrial plant in the Tangier Free Zone business park. The site will produce automobile cables. The factory, which cost €19m to set up, will export 75% of its output. Once up and running, the Moroccan automotive industry will be producing about 25% of the automotive cables consumed in Europe. It will ultimately have the capacity to deliver 1.5 million vehicles for the Moroccan and international market.

Morocco World News 28 January