The London Stock Exchange’s inaugural “Companies to Inspire Africa” report has listed 54 South African, 50 Kenyan and 58 Nigerian companies. The report features 42 countries across seven major sectors, and highlights strong company performances and the “potential for these firms to become the next corporate champions powering Africa’s future economic and social development”.
The report identifies 343 companies as the continent’s most exciting and dynamic small businesses. These companies delivered impressive average compound annual growth rate in revenue of 16% over a three year period. The report was produced in partnership with African Development Bank Group, CDC Group and PwC who contributed their expertise to the report, and is sponsored by Citi, Diamond Bank and FTI Consulting.
These fast-growing companies appear in all regions of Africa, the report found. The highest concentration was in West Africa (31%), closely followed by East Africa (26%) and Southern Africa with 22%.
Collectively, Kenyan companies make up 14% of the total number of companies in the report, one of the highest concentrations of high growth companies in Africa. 28% of Kenyan companies operate in the renewable energy space. According to the report, almost half of the Kenyan companies operate in innovative industries, with 14 companies in the renewable energy space and 11 in technology and telecoms.
South African companies also represent a wide range of industries. Oil and gas, construction, manufacturing and chemicals, is the biggest sector across the continent, with 23% of companies in the report, followed by financial services which includes mobile banking, micro-credit, disruptive technology and Fintech, with 16%, indicating that the continent has great promise for both traditional and more recent economic success stories.
“London Stock Exchange’s first-ever ‘Companies to Inspire Africa’ report is proof of the dynamism and vision of the City of London in supporting Africa’s growing economies. Now is the time for UK businesses to seize the opportunities offered by Africa, and the UK Government is supporting the City of London to become the global financial centre for the developing world,” International Development Secretary, Priti Patel said at the launch of the report. “This will help Africa industrialise faster, trade more and create millions of jobs, driving the continent forward to a future of prosperity, and helping some of the world’s poorest countries stand on their own two feet.”
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