Weekly Africa Newsbriefs

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    Leriba Africa Newsbrief

     

     Week commencing 31 July 2017

     


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    Kenya

    $6,25m cancer centre set to be built at MP Shah

    One of India’s largest cancer treatment hospital chains, HealthCare Global Enterprises (HCG), has partnered with Cancer Care Kenya and MP Shah Hospital to invest in a cancer treatment centre in Nairobi. Through HCG Kenya, the firm will have a 77.6% stake in the facility while MP Shah Hospital will have 10%, with other partners controlling 12.4%. The aim of the centre is to mitigate the economic impact on Kenyan patients who travel to India, South Africa, Egypt and Morocco, for treatment.

    Daily Nation 26 July

     

    Pan Africa

    Alibaba founder launches African Entrepreneurs Fund

    Alibaba founder Jack Ma has announced the creation of a $10m African Young Entrepreneurs Fund, set to begin operations this year, to support African online businesses. Ma will also be working with the United Nation’s Conference on Trade and Development to help bring 200 budding African business people to China to learn from Alibaba. In addition, Ma plans to roll out a partnership with African universities to teach internet technology, artificial intelligence and e-commerce.
    My Joy Online 27 July

     

    Nigeria

    Verve’s card-less scheme attracts 13 financial institutions

    Electronic payment processing company Verve International has attracted 13 Nigerian banks and mobile money operators to a strategic partnership to facilitate countrywide infrastructure for cardless transactions. Tagged “Paycode”, the payment platform will make it possible for Nigerians to withdraw money at ATMs as well as make payments at point of sale systems without using debit or credit cards.

    The Guardian Nigeria 27 July

     

    Malawi

    MyBucks acquires 50% stake in NFB

    New Finance Bank has boosted its capital base following an agreement with MyBucks to inject an initial $3,5m into the bank, raising the global fintech company’s stake in the bank to 50%. MyBucks uses technology to provide financial products and services to the low- and middle-income customer segments, predominantly in high-growth emerging markets. The aim of the agreement is to strengthen the bank’s financial position, allowing it to intensify efforts to close the gap between the banked and unbanked masses in Malawi.

    Business Malawi 26 July

     

    Uganda

    EAIF and FMO refinance AREF’s Bugoye hydro power plant

    Emerging Africa Infrastructure Fund (EAIF) and Dutch Development finance institutions, FMO are jointly lending $29.3m of senior debt to the 13MW Bugoye hydro-electric power plant, situated in Western Uganda, which is owned by the Africa Renewable Energy Fund (AREF), Berkeley Energy‘s $200m renewable energy fund. The proceeds will be used to repay the balance of EAIF’s original loan as well as construction loans made by AREF. In addition, some of the capital will be used to fund repair works for the power plant, which has been producing electricity for Uganda’s national grid since 2008.

    Africa Capital Digest 23 July

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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

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Weekly Africa Newsbriefs

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

Leriba Africa Newsbrief

 

 Week commencing 31 July 2017

 


the-device-1822457_1280

 

 

 

 

 

 

 

 

Kenya

$6,25m cancer centre set to be built at MP Shah

One of India’s largest cancer treatment hospital chains, HealthCare Global Enterprises (HCG), has partnered with Cancer Care Kenya and MP Shah Hospital to invest in a cancer treatment centre in Nairobi. Through HCG Kenya, the firm will have a 77.6% stake in the facility while MP Shah Hospital will have 10%, with other partners controlling 12.4%. The aim of the centre is to mitigate the economic impact on Kenyan patients who travel to India, South Africa, Egypt and Morocco, for treatment.

Daily Nation 26 July

 

Pan Africa

Alibaba founder launches African Entrepreneurs Fund

Alibaba founder Jack Ma has announced the creation of a $10m African Young Entrepreneurs Fund, set to begin operations this year, to support African online businesses. Ma will also be working with the United Nation’s Conference on Trade and Development to help bring 200 budding African business people to China to learn from Alibaba. In addition, Ma plans to roll out a partnership with African universities to teach internet technology, artificial intelligence and e-commerce.
My Joy Online 27 July

 

Nigeria

Verve’s card-less scheme attracts 13 financial institutions

Electronic payment processing company Verve International has attracted 13 Nigerian banks and mobile money operators to a strategic partnership to facilitate countrywide infrastructure for cardless transactions. Tagged “Paycode”, the payment platform will make it possible for Nigerians to withdraw money at ATMs as well as make payments at point of sale systems without using debit or credit cards.

The Guardian Nigeria 27 July

 

Malawi

MyBucks acquires 50% stake in NFB

New Finance Bank has boosted its capital base following an agreement with MyBucks to inject an initial $3,5m into the bank, raising the global fintech company’s stake in the bank to 50%. MyBucks uses technology to provide financial products and services to the low- and middle-income customer segments, predominantly in high-growth emerging markets. The aim of the agreement is to strengthen the bank’s financial position, allowing it to intensify efforts to close the gap between the banked and unbanked masses in Malawi.

Business Malawi 26 July

 

Uganda

EAIF and FMO refinance AREF’s Bugoye hydro power plant

Emerging Africa Infrastructure Fund (EAIF) and Dutch Development finance institutions, FMO are jointly lending $29.3m of senior debt to the 13MW Bugoye hydro-electric power plant, situated in Western Uganda, which is owned by the Africa Renewable Energy Fund (AREF), Berkeley Energy‘s $200m renewable energy fund. The proceeds will be used to repay the balance of EAIF’s original loan as well as construction loans made by AREF. In addition, some of the capital will be used to fund repair works for the power plant, which has been producing electricity for Uganda’s national grid since 2008.

Africa Capital Digest 23 July