Africa Newsbriefs 18 April

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    Leriba Africa Newsbrief

     

     

    Week commencing 17 April 2017

     

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    Africa

    Deloitte publishes Africa trends report

    The “repricing” of assets across many African economies could well position them to attract more foreign direct investment over the medium term, says Deloitte’s in its Insights report into African Trends Going into 2017. In the short term, a likely trend is the restructuring and sale of public utilities and state assets. Lessons learnt from struggling countries may inspire other governments to take a closer look at their own debt sustainability, which may promote privatisation in an effort to stimulate sustainable growth, it says.

    Deloitte 17 April

     

    East Africa

    AfDB unveils power plan for Africa

    The African Development Bank has unveiled its new electrification programme, under which it will invest $12bn over the next five years. The fund will support its New Deal on Energy for Africa, which aims to achieve universal access to electricity in Africa by 2025.

    African Business 17 April

     

    Pan Africa

    Quantum launches power development platform

    Quantum Global, a Swiss-headquartered private equity investment firm, is launching a power development platform on behalf of QG Africa Mezzanine, its $250m investment fund. In its first phase of operation, the joint venture will prioritise potential opportunities in several sub-Saharan countries including Angola, Botswana, Mozambique, Uganda, Nigeria, Kenya and Ghana.

    Africa Capital Digest 17 April

     

    Kenya

    Private equity firm eyes deals with IFC

    Leapfrog Investments is set to receive up to $25m from the International Finance Corporation to fund investments in health care and financial services firms in Kenya, Nigeria, Ghana and South Africa, among others. The fund will invest in companies that focus on the lower-income emerging consumer and also enhance regional integration by supporting companies’s expansion across borders.

    Daily Nation 10 April

     

    Pan Africa

    AB InBev to wring potential from Africa beer with exports

    Anheuser-Busch InBev NV will export packs of eight African beer brands outside the continent in a bid to maximise the potential of a continent that was key to its decision to buy rival SABMiller for $103bn. The brands including Castle, the dominant brand in South Africa, Kilimanjaro of Tanzania and Nigeria’s Hero.

    Bloomberg 12 April

     

    Tanzania

    EU-Tanzania seal investment deal

    The European Union has agreed to provide the Tanzanian government with $205m in budget support over the next four years. The money will be used to finance priority expenditure in the Second Five Year Development Plan, particularly in the agriculture, energy, health and industrial development sectors.

    African Business 11 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 
       
       

Africa Newsbriefs 18 April

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Weekly newsbriefs

Africa Newsbriefs 18 April

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

Leriba Africa Newsbrief

 

 

Week commencing 17 April 2017

 

 trend-1445464_1280 (1)

 

 

 

 

 

 

 

 

 

Africa

Deloitte publishes Africa trends report

The “repricing” of assets across many African economies could well position them to attract more foreign direct investment over the medium term, says Deloitte’s in its Insights report into African Trends Going into 2017. In the short term, a likely trend is the restructuring and sale of public utilities and state assets. Lessons learnt from struggling countries may inspire other governments to take a closer look at their own debt sustainability, which may promote privatisation in an effort to stimulate sustainable growth, it says.

Deloitte 17 April

 

East Africa

AfDB unveils power plan for Africa

The African Development Bank has unveiled its new electrification programme, under which it will invest $12bn over the next five years. The fund will support its New Deal on Energy for Africa, which aims to achieve universal access to electricity in Africa by 2025.

African Business 17 April

 

Pan Africa

Quantum launches power development platform

Quantum Global, a Swiss-headquartered private equity investment firm, is launching a power development platform on behalf of QG Africa Mezzanine, its $250m investment fund. In its first phase of operation, the joint venture will prioritise potential opportunities in several sub-Saharan countries including Angola, Botswana, Mozambique, Uganda, Nigeria, Kenya and Ghana.

Africa Capital Digest 17 April

 

Kenya

Private equity firm eyes deals with IFC

Leapfrog Investments is set to receive up to $25m from the International Finance Corporation to fund investments in health care and financial services firms in Kenya, Nigeria, Ghana and South Africa, among others. The fund will invest in companies that focus on the lower-income emerging consumer and also enhance regional integration by supporting companies’s expansion across borders.

Daily Nation 10 April

 

Pan Africa

AB InBev to wring potential from Africa beer with exports

Anheuser-Busch InBev NV will export packs of eight African beer brands outside the continent in a bid to maximise the potential of a continent that was key to its decision to buy rival SABMiller for $103bn. The brands including Castle, the dominant brand in South Africa, Kilimanjaro of Tanzania and Nigeria’s Hero.

Bloomberg 12 April

 

Tanzania

EU-Tanzania seal investment deal

The European Union has agreed to provide the Tanzanian government with $205m in budget support over the next four years. The money will be used to finance priority expenditure in the Second Five Year Development Plan, particularly in the agriculture, energy, health and industrial development sectors.

African Business 11 April