Highlights From ‘Companies To Inspire Africa’ 2019 Edition Released By The LSE Group

  • Jan 18, 2019 GMT
  • Team Kalkine
Highlights From ‘Companies To Inspire Africa’ 2019 Edition Released By The LSE Group
The London Stock Exchange Group (LSEG) launched the second edition of the ‘Companies to Inspire Africa 2019’ Report featuring 360 companies from 32 countries across the African Continent with 7 major sectors represented. It sheds light on some of the wondrous success stories and identifies a new cohort of fast-growing and dynamic private businesses across Africa, whose GDP has only moved upward and tripled since 2000. There are several outstanding inferences confirming that Africa, encompassing five of the world’s fastest growing economies being led by young and growing populations, is flourishing in its endeavours. Some of the key points to note are:
  • Nigeria and Kenya led the presentation with 97 and 66 countries respectively. In addition, Nigeria is leads at Industry and Technology and Telecom sectors.
  • About 130 companies operate in Western Africa and 147 in Eastern Africa alone.
  • The 2018 Cohort exhibited Compound Annual Growth Rate (CAGR) for revenue of about 46% and CAGR for average employee of 25%. Entrepreneurship is at the heart of the continents combined economic growth, rising investments and job creation.
  • The background is set on entrepreneurial businesses that are small at scale to established corporations with about 20% companies led by women.
  • Women CEO’s are leading 39% and 31% of the companies in Healthcare & Education and Financial Services sector respectively. They are smashing gender stereotypes and entering industries previously seen as male domains.
  • Renewable energy along with financial sector have been the grow-driven spaces with revenue growth rates of about 66% and 70%, respectively. While, consumer services with 79 companies from 20 countries is the most prominent sector implying growing middle-class space and rising demand for consumer goods, food & beverages, leisure & tourism, media and retail.
  • Agriculture sector’s share of Africa’s GDP is 32% and it’s a major engine of job creation in the sub-Saharan Region (60% of the total employment).
  • In almost 16 years from 2000, there has been a doubling of number of children entering primary schools in Sub-Saharan Africa and literacy rates among 15 to 24-year-old Sub-Saharan women have been up over 10%.
United Kingdom and Africa’s evolving Relationship To tap into the next stage of Africa’s growth, the United Kingdom has been collaborating on numerous initiatives and aiming to reap the benefits for its own economy as well. The UK is the second largest foreign investor in Africa and offering an additional funding channel, supporting entrepreneurship, infrastructure, green investment and economic growth. There are above 100 African companies currently listed on LSE with a total market cap of USD107 billion. In 2018 YTD only, they raised around USD1.3 billion of capital on the main market. In 2018, the LSE recorded issuances from Nigeria, Kenya, Egypt, Angola and Ghana as well as corporates such as Seplat, Absa Bank and FirstRand Bank, according to the figures quoted in the report. Then, Vivo Energy, the African IPO player was also launched in London and has been the first company from the lot under discussion to float on LSE. Furthermore, LSEG also has several existing valued technology partnerships with stock exchanges in African countries. The UK has also announced, in the report, a foreseeable ambition to be the G7 summit’s biggest investor in Africa by 2022. Furthermore, the UK’s Development Finance Institution, the CDC, would assiduously target rising investments into Africa, aiming to up to EUR3.5 billion in the private sector over the course of next four years. Road ahead for Africa The African continent with a rapidly urbanising population, some of the most dynamic economies in the world and the fastest growing middle class on the planet, has an immense potential and lucrative exciting opportunities for doing businesses.  The UK trade commissioner for Africa, Emma Wade-Smith Obe, quoted that “These impressive companies represent just the tip of a very large iceberg of talented and inspiring people who are building Africa’s international businesses of tomorrow. The Companies to Inspire Africa initiative provides a great platform to highlight the innovation taking place across the continent, and hopefully bring even more investment and partnerships to help these businesses continue to expand”.

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