Weekly Africa Newsbriefs 6 November

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

    Leriba Africa Newsbrief

     

     Week commencing 6 Novemeber 2017

     

     

    power-plant-2411932_1280

     

     

     

     

     

     

     

     

     

     

    Nigeria

    Agreements signed for $1.1bn power plant

    The Nigerian National Petroleum Corporation has formalised an agreement with Dangote Group and infrastructure development firm Black Rhino Group for the construction of the $1.1bn Qua Iboe Power Plant. The project is expected to meet the country’s growing electricity demand. Power produced from the 540MW facility will be sold to Nigeria Bulk Electricity Trading under a long-term power purchase agreement signed with the project developers.

    4-Traders 28 October

     

    Processing park to boost crop exports

    The government plans to establish a $1bn crop-processing park with Turkish investors to boost the country’s agricultural exports. The Badeggi Crop Processing Zone is expected to start operating in June 2018, with an initial investment of $250m by an unidentified Turkish investor, followed by an additional $800m as the project progresses. The facility will process more than 750,000 million tonnes of crops including rice, maize, yam, cassava, groundnuts and peas. The government plans to set up 15 similar crop zones across the country.

    Bloomberg 1 November

     

    Israeli firm awarded maritime security deal

    The federal government has approved a security contract valued at $195m to an undisclosed Israeli firm to procure security equipment and assist in training Nigerian security personnel tackle crime along the nation’s waterways. Work will begin in December and continue over a three-year period, after which the company will hand responsibility over to Nigerian security personnel.

    The Guardian Nigeria 31 October

     

    Egypt

    Japanese agency funds electricity distribution project

    The Egyptian Electricity Holding Company has signed a $93.8m loan contract with the Japan International Co-orporation Agency to fund the automatic control projects of electricity distribution companies in Alexandria. The repayment period will be 30 years with a 10-year grace period at an interest rate of 0.01%.

    Daily News Egypt 31 October

     

    Cameroon

    Enerray to develop 30MW PV project 

    Solar power company Enerray is set to provide engineering, procurement and construction services for a 30MW photovoltaic project near the Garoua International Airport. Once completed, the project will be connected to the national grid. It is expected to provide energy to portions of the country that have no access to electricity and regions that are prone to blackouts.

    PV Tech 30 October

     

    Tanzania

    UK firm gives extra funding to Direct Pay Online

    Online payments solutions provider Direct Pay Online has received a second investment of $5m from private equity firm Apis Partners, for the implementation of its strategic plan to achieve organic growth across Africa, as well as to strengthen its position through mergers and acquisitions, enable it to integrate the group’s systems and develop its DumaPay application.

    Daily News Tanzania 3 November

    This entry was posted in Leriba in the Media, Snapshots, Weekly newsbriefs. Bookmark the permalink.

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 6 November

Leriba in the Media
>>
Snapshots
>>
Weekly newsbriefs

Weekly Africa Newsbriefs 6 November

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

Leriba Africa Newsbrief

 

 Week commencing 6 Novemeber 2017

 

 

power-plant-2411932_1280

 

 

 

 

 

 

 

 

 

 

Nigeria

Agreements signed for $1.1bn power plant

The Nigerian National Petroleum Corporation has formalised an agreement with Dangote Group and infrastructure development firm Black Rhino Group for the construction of the $1.1bn Qua Iboe Power Plant. The project is expected to meet the country’s growing electricity demand. Power produced from the 540MW facility will be sold to Nigeria Bulk Electricity Trading under a long-term power purchase agreement signed with the project developers.

4-Traders 28 October

 

Processing park to boost crop exports

The government plans to establish a $1bn crop-processing park with Turkish investors to boost the country’s agricultural exports. The Badeggi Crop Processing Zone is expected to start operating in June 2018, with an initial investment of $250m by an unidentified Turkish investor, followed by an additional $800m as the project progresses. The facility will process more than 750,000 million tonnes of crops including rice, maize, yam, cassava, groundnuts and peas. The government plans to set up 15 similar crop zones across the country.

Bloomberg 1 November

 

Israeli firm awarded maritime security deal

The federal government has approved a security contract valued at $195m to an undisclosed Israeli firm to procure security equipment and assist in training Nigerian security personnel tackle crime along the nation’s waterways. Work will begin in December and continue over a three-year period, after which the company will hand responsibility over to Nigerian security personnel.

The Guardian Nigeria 31 October

 

Egypt

Japanese agency funds electricity distribution project

The Egyptian Electricity Holding Company has signed a $93.8m loan contract with the Japan International Co-orporation Agency to fund the automatic control projects of electricity distribution companies in Alexandria. The repayment period will be 30 years with a 10-year grace period at an interest rate of 0.01%.

Daily News Egypt 31 October

 

Cameroon

Enerray to develop 30MW PV project 

Solar power company Enerray is set to provide engineering, procurement and construction services for a 30MW photovoltaic project near the Garoua International Airport. Once completed, the project will be connected to the national grid. It is expected to provide energy to portions of the country that have no access to electricity and regions that are prone to blackouts.

PV Tech 30 October

 

Tanzania

UK firm gives extra funding to Direct Pay Online

Online payments solutions provider Direct Pay Online has received a second investment of $5m from private equity firm Apis Partners, for the implementation of its strategic plan to achieve organic growth across Africa, as well as to strengthen its position through mergers and acquisitions, enable it to integrate the group’s systems and develop its DumaPay application.

Daily News Tanzania 3 November