Weekly Africa Newsbriefs 9 April

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    Leriba Africa Newsbrief

     

     Week commencing 9 April 2018

     


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    IFC funds National Cement expansion

    The International Finance Corporation is set to invest an additional $97m in National Cement to fund the company’s construction of new plants. National Cement’s chairman and major shareholder, Narendra Raval, is expected to simultaneously inject $103m in the expansion plan, estimated to cost a total of $200m. The project will involve the construction of two grinding plants in Uganda and Kenya, a clinker line and an eight-megawatt power plant in Merrueshi, Kenya.

    Daily Nation 4 April

     

     

    Libya

    Elf Aquitaine in bid to acquire Marathon Oil Libya

    Elf Aquitaine, a wholly owned subsidiary of oil group Total, is bidding to acquire the entire share capital of Marathon Oil Libya. The proposed transaction is with the Comesa Competition Commission, an international regulatory body. The transaction will affect all 15 countries in the Common Market for Eastern and Southern Africa (Comesa) where Total has operations.

    The Times Group Malawi 5 April

     

    French firm to build new Benghazi offices

    The National Oil Corporation has signed a deal with French building and engineering group Artelia to manage the development of its offices in the eastern city of Benghazi. The buildings will include offices for other oil companies and a branch of Libya’s central bank, as well as a hotel complex and conference centre. Although there are no details on the cost of the project, it will be funded by commercial banks. It is not yet clear when construction will commence.

    Reuters 4 April

     

     

    Mozambique

     New sugar production plant for Moamba

    A new $30m sugar factory owned and run by Indian company Pure Diets Mozambique will open in August in Moamba district in Maputo province. The plant is expected to feed the Mozambican and European markets. It has an area of 4,095 hectares for sugarcane production and about 1,000 hectares set aside for the plant.

    Club of Mozambique 5 April

     

     

    Nigeria

    African Automotive to distribute Eternity products

    Eternity Technologies, a United Arab Emirates manufacturer of motive power, network power and block batteries for cyclic applications, has announced the appointment of African Automotive Nigeria as its exclusive distributors. The partnership with will open opportunities for solutions in the banking, telecom, traction and other standby power segments.

    The Guardian Nigeria 4 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 
       
       

Weekly Africa Newsbriefs 9 April

Leriba in the Media
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Snapshots
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Weekly newsbriefs

Weekly Africa Newsbriefs 9 April

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

Leriba Africa Newsbrief

 

 Week commencing 9 April 2018

 


cement-2628697_1280

 

 

 

 

 

 

 

 

 

 

IFC funds National Cement expansion

The International Finance Corporation is set to invest an additional $97m in National Cement to fund the company’s construction of new plants. National Cement’s chairman and major shareholder, Narendra Raval, is expected to simultaneously inject $103m in the expansion plan, estimated to cost a total of $200m. The project will involve the construction of two grinding plants in Uganda and Kenya, a clinker line and an eight-megawatt power plant in Merrueshi, Kenya.

Daily Nation 4 April

 

 

Libya

Elf Aquitaine in bid to acquire Marathon Oil Libya

Elf Aquitaine, a wholly owned subsidiary of oil group Total, is bidding to acquire the entire share capital of Marathon Oil Libya. The proposed transaction is with the Comesa Competition Commission, an international regulatory body. The transaction will affect all 15 countries in the Common Market for Eastern and Southern Africa (Comesa) where Total has operations.

The Times Group Malawi 5 April

 

French firm to build new Benghazi offices

The National Oil Corporation has signed a deal with French building and engineering group Artelia to manage the development of its offices in the eastern city of Benghazi. The buildings will include offices for other oil companies and a branch of Libya’s central bank, as well as a hotel complex and conference centre. Although there are no details on the cost of the project, it will be funded by commercial banks. It is not yet clear when construction will commence.

Reuters 4 April

 

 

Mozambique

 New sugar production plant for Moamba

A new $30m sugar factory owned and run by Indian company Pure Diets Mozambique will open in August in Moamba district in Maputo province. The plant is expected to feed the Mozambican and European markets. It has an area of 4,095 hectares for sugarcane production and about 1,000 hectares set aside for the plant.

Club of Mozambique 5 April

 

 

Nigeria

African Automotive to distribute Eternity products

Eternity Technologies, a United Arab Emirates manufacturer of motive power, network power and block batteries for cyclic applications, has announced the appointment of African Automotive Nigeria as its exclusive distributors. The partnership with will open opportunities for solutions in the banking, telecom, traction and other standby power segments.

The Guardian Nigeria 4 April