Weekly Africa Newsbriefs 7 May

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    Leriba Africa Newsbrief

     

     Week commencing 7 May 2018

     


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    Zimbabwe

    State to sign coal-bed methane deal

    The Zimbabwean government is planning to sign a $700m deal with an unnamed investor who will develop a coal-bed methane site. The deal comes as President Emmerson Mnangagwa’s administration courts foreign investment to rebuild the country’s stagnant economy. Most of the output from the project will be channelled towards the establishment of a power plant and related products.

    The Herald Zimbabwe 4 May

     

     

    Kenya

    d.light raises funding for growth phase

    Five major banks and funds across three continents have financed the global for-profit social enterprise d.light’s next phase of growth to empower more off-grid families. d.light has raised $50m in debt funding from the European Investment Bank (EIB); Swiss asset manager responsAbility Investments; Social Investment Managers & Advisors; SunFunder, a global financier of solar energy projects; and an unnamed investor. The new investment will enable d.light to continue its rapid scale-up globally, launch new appliance and solar home system offerings and provide financed pay-as-you-go solar home system products.

    Africa Global Funds 29 April

     

     

    Tunisia

    Proparco backs Enda Tamweel with €5.9m

    Private sector financier Proparco has acquired an equity stake worth €5.9m in Enda Tamweel, a local microfinance institution. The investment will enable Enda Tamweel to serve a greater number of microentrepreneurs with micro-credit, particularly women and rural populations. The loan was accompanied by the co-financing of technical assistance.

    Liquid Africa 2 May

     

     

    Egypt

    Mondi to acquire local industrial bags producer

    Global packaging producer Mondi has agreed to buy privately owned industrial bags manufacturer National Company for Paper Products (NPP) for $28.75m to expand deeper into the Middle East. Mondi will be buying all of the firm’s shares on a debt and cash free basis. The acquisition of NPP is meant to complement its network of plants in the Middle East region.

    Ahram Online 30 April

     

     

    Nigeria

    TellCo rolls out higher off-grid solar power system

    Renewable energy firm TellCo Europe Nigeria has announced plans to launch its TellCoSol Off-Grid Solar Power System, a Swiss technology that aims to simplify the provision of solar power in the country. TellCo was established as a vehicle to provide off-grid solar power business solutions to small and medium enterprises in Nigeria, in a move aimed at bridging the country’s energy deficit. The parent company, TellCo Europe Switzerland, had given its commitment to work with its Nigerian arm to accelerate the process and is already arranging funding support for 1,000,000 off-grid solar units for the country’s barbers.

    The Guardian Nigeria 1 May

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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 7 May

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 7 May

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

Leriba Africa Newsbrief

 

 Week commencing 7 May 2018

 


gas-1749026_1280

 

 

 

 

 

 

 

 

 

 

Zimbabwe

State to sign coal-bed methane deal

The Zimbabwean government is planning to sign a $700m deal with an unnamed investor who will develop a coal-bed methane site. The deal comes as President Emmerson Mnangagwa’s administration courts foreign investment to rebuild the country’s stagnant economy. Most of the output from the project will be channelled towards the establishment of a power plant and related products.

The Herald Zimbabwe 4 May

 

 

Kenya

d.light raises funding for growth phase

Five major banks and funds across three continents have financed the global for-profit social enterprise d.light’s next phase of growth to empower more off-grid families. d.light has raised $50m in debt funding from the European Investment Bank (EIB); Swiss asset manager responsAbility Investments; Social Investment Managers & Advisors; SunFunder, a global financier of solar energy projects; and an unnamed investor. The new investment will enable d.light to continue its rapid scale-up globally, launch new appliance and solar home system offerings and provide financed pay-as-you-go solar home system products.

Africa Global Funds 29 April

 

 

Tunisia

Proparco backs Enda Tamweel with €5.9m

Private sector financier Proparco has acquired an equity stake worth €5.9m in Enda Tamweel, a local microfinance institution. The investment will enable Enda Tamweel to serve a greater number of microentrepreneurs with micro-credit, particularly women and rural populations. The loan was accompanied by the co-financing of technical assistance.

Liquid Africa 2 May

 

 

Egypt

Mondi to acquire local industrial bags producer

Global packaging producer Mondi has agreed to buy privately owned industrial bags manufacturer National Company for Paper Products (NPP) for $28.75m to expand deeper into the Middle East. Mondi will be buying all of the firm’s shares on a debt and cash free basis. The acquisition of NPP is meant to complement its network of plants in the Middle East region.

Ahram Online 30 April

 

 

Nigeria

TellCo rolls out higher off-grid solar power system

Renewable energy firm TellCo Europe Nigeria has announced plans to launch its TellCoSol Off-Grid Solar Power System, a Swiss technology that aims to simplify the provision of solar power in the country. TellCo was established as a vehicle to provide off-grid solar power business solutions to small and medium enterprises in Nigeria, in a move aimed at bridging the country’s energy deficit. The parent company, TellCo Europe Switzerland, had given its commitment to work with its Nigerian arm to accelerate the process and is already arranging funding support for 1,000,000 off-grid solar units for the country’s barbers.

The Guardian Nigeria 1 May