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This African Country Has The Most Inpiring, Dynamic and High Growth Companies in Africa

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The second edition of Companies to Inspire Africa 2019 Report by London Stock Exchange (LSE) is out. This impressive report lists 360 privately-held companies operating in 32 different African countries. It identifies Africa’s most inspirational and dynamic private, high-growth companies to a global market.

Business growth across Africa has greatly improved from an average compound annual growth rate (CAGR) of 16 percent in 2017, to the current 46 percent in three years. The report represented seven most important industry sectors and featured companies both small and established. These companies ranged from SMEs to giant African corporations.

Nigeria led the countries in the report producing 97 companies. Kenya came second with 66 firms in the report while Uganda provided 31. The three major sectors of Agriculture, Industry and Consumer Services accounted for more than half of all companies featured. Coming second with more than a quarter of companies represented were the sectors of Technology and Telecoms together with Financial Services. Additionally, Renewable Energy together with Health and Education sectors also registered a significant representation.

Best Sectors Inspiring African Growth

These are the represented sectors in the Companies to Inspire Africa, with their respective number of featured companies;

  1. Consumer Services had 79 companies, up from 49 in 2017.
  2. Industry had 77 companies, down from 81 in 2017.
  3. Agriculture with 53 companies, up from 46 in 2017).
  4. Technology & Telecoms with 51 companies, down from 56 previously.
  5. Financial Services with 48 companies, down from 66 in 2017.
  6. Healthcare & Education with 31 companies shooting up from 19.
  7. Renewable Energy had 21 companies dropping from 29 in 2017.

African-focused trade groups and investors, African government representatives and the CEOs of the featured companies, and others graced the launch of this 148-page report. The CEO of LSE Group, David Schwimmer was joined by International Development Secretary of Britain, Penny Mordaunt in welcoming the guests.

READ ALSO: Africa Gets $200m Trade Guarantees from Europe

“Africa is going through a period of enormous change. And, with five of the world’s fasting-growing economies are African and by 2050 a quarter of the world’s population will live there, this growth presents unique opportunities for us all,” Mordaunt, who is also the MP for Portsmouth North, commented. She also noted that if African-initiated dreams were combined with British expertise, more investments and jobs would ensure for Africa and United Kingdom.

Companies to Inspire Africa 2019 Led By Women CEOs

An analysis of the 2019 Companies to Inspire Africa report and the sectors involved in this growth reveals some impressive trends. The average number of employees in these companies is 363 while CAGR stands at 25 percent in three years.

The number of companies led by women almost doubled this year accounting for 23 percent of the featured firms. Senior female management had the greatest bang in Healthcare & Education sector where 39 percent of companies have women CEOs. This was closely followed by Financial Services sector where women are leading as CEOs in 31 percent of companies represented. To illustrate this even more, out of the 20 Ghanaian companies in the report, 10 of them are led by women.

Companies to Inspire Africa by Regions

This report shows and reaffirms the West-East axis dominance in Africa. As noted before, the two leading countries came from the two African divides of West and East. Nigeria represented West Africa and Kenya did it for East Africa. In total, Western Africa had about 36 percent of companies (130) while Eastern Africa had about 41 percent (147).

The rest of Africa is also well represented in the report. This is because Southern Africa provided 47 companies, while Northern Africa brought 26. Additionally, Central Africa gave 6 companies to sum it up.

These high growth companies have the potential to transform the African economy and become tomorrow’s job creators. We are committed to helping companies realize that potential and we are pleased to highlight and celebrate the company success stories behind one of the world’s fastest growing markets,” Schwimmer commented.

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Business and Development

Rwanda’s Rise 2.5 Decades After The Devastating Genocide

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Kigali, the capital of Rwanda

Kigali, Rwanda’s capital

Rwanda is emerging as an economic powerhouse in East Africa just 2.5 decades after a very dark and devastating genocide. So good is the economic progress that the country has reduced its reliance on foreign donations. Currently, Rwanda domestically funds 84 percent of its budget. Two decades ago, the country could afford to fund only 36 percent of its budget.

Indicators

In addition to the reduced reliance on foreign aid, several indicators demonstrate Rwanda’s rapid growth. Major indicators are the rate of growth, decline in inequality, diversification, and decline in rates of poverty.

Growth Rate

Between 2001 and 2014, the average economic growth was 8 percent. The IMF projected Rwanda’s economic growth at 7.2 percent in 2018. The projections were based on favorable rains and strong industrial activity. In the first quarter of 2018, Rwanda registered a 10.6 percent growth in economy.

Equality in Rwanda

The country’s growth is also characterized by a decline in rates of inequality. The decline is largely due to improved healthcare, school enrollment, literacy, and life expectancy.

Greater equality is exhibited in the country’s parliament, where women make up 68 percent of parliament. This is one of the highest rates globally, putting Rwanda up in the ranks of countries with highest female representation in parliament.

Diversification

Farming is an important sector in Rwanda’s economy. A majority of the population still live in rural areas and depend on subsistence farming. The government plans to shifts this focus to include more economic and investment opportunities. Specifically, the country is moving towards becoming more of a service-oriented and knowledge-based economy.

Decline in Poverty

The economic growth has translated into reducing poverty levels across the country. In 2005, 57 percent of Rwandese lived below the poverty line. By 2010, this number had reduced to 45 percent. In 2017, the poverty level was registered at 38.2 percent, according to the National Institute of Statistics of Rwanda.

Kagame’s Transformative Leadership

At the centre of the country’s rapid growth is President Paul Kagame. Kagame adopted and pursued policies that have transformed Rwanda to a prospective middle economy. The President continues to implement development plans for the country, as outlined in the country’s vision 2020. Also, under Kagame, Rwanda’s ease of doing business has significantly improved.

Vision 2020

Vision 2020 is Rwanda’s blueprint to continued economic progress. The vision is based on several pillars that include good governance, human resource development, infrastructure development, and private sector-led development. Other pillars are regional and international integration and market-oriented agriculture. With only one year left on the Plan, the government is still optimistic it will hit the targets.

Rwanda will be moving from Vision 2020 to Vision 2050, which heightens the growth prospects of the country by targeting a high income economy status by 2050. In order to reach this target, the country needs to achieve an average growth rate of 10 percent.

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This Pan African, Mentor-Driven And Corporate-Backed Accelerator Is Rewarding the 10 Most Promising Startups in Africa 2019

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The process of selecting 10 most promising startups in Africa 2019 is soon starting. A Pan African, mentor-driven and corporate-backed accelerator, aimed at empowering innovators is looking for the best startups in Africa to support so they can grow and realize their potential. Have you heard of Startupbootcamp Afritech 2019 Fasttrack Tour? This is a tour that will involve pitching events, mentoring and networking as well as hackathons in select cities in Africa.  These tour activities are lined up in order to ensure that the selected startups in Africa 2019 taste the goodies that the corporate giants can provide.

Startupbootcamp AfriTech Accelerator

Startupbootcamp AfriTech is the accelerator behind this exciting opportunity for startups. The team has assembled a powerful squad of sponsors in order to make sure that the selected startups reap maximum benefits. These sponsors include PWC, BNP, RCS, Nedbank, Paribas and Old Mutual. In this way, the accelerator empowers these innovative and promising startups in Africa in order to connect them with the best corporate players on the continent. Pan African, mentor-driven and corporate-backed accelerator, aimed at empowering innovators

Philip Kiracofe, Sebekedi Motlhabane Koloi and Zachariah George make the team behind this South African Startup accelerator. In order to make this opportunity best fitting to startups, the team will visit 15 countries in Africa. There will be 19 events in total so that each selected city gets the best attention. During these events, 10 most promising startups in Africa 2019 will be selected for rewards. In addition to startups, the accelerator is also inviting the corporate world, investors, mentors and other thought leaders to join in the events.

The program is already underway and will end on 22nd May. The 10 selected most promising startups in Africa will have various rewards lined up for grabs. Why should your startup apply and strive to be among the selected few? You should apply because the 10 selected most promising tech startups in Africa will get an opportunity to present their ideas to the accelerator team and fellow innovators. Additionally, you will also get an opportunity to get mentor feedback and network with the corporate world. You will also get to know more about this accelerator program.

What Awaits The 10 Most Promising Startups in Africa 2019?

The selected 10 most promising startups in Africa will receive the following:

  • Be invited to present their innovative ideas to the Startupbootcamp team and fellow entrepreneurs
  • Have the opportunity to receive mentor feedback, network with corporates and learn more about the Cape Town-based Startupbootcamp accelerator program
  • Get in the accelerator program watch list in order to get a better chance to get into the program or get opportunities to do pilots with corporate sponsors.
  • Get exposure to worldwide entrepreneurship and business opportunities in order to develop.
  • Meet with the industry best executives in order to learn even more.

Countries, Cities, and Dates for the Events

Select your nearest city and the best date for your startup in order to submit an application. Additionally, the earlier a startup applies,  the better the chances it will have to become one of the 10 most promising startups in Africa.

For a startup to be among the 10 most promising startups in Africa, it will need to be in at least one of the following sectors;

  • Water, sanitation, and hygiene
  • Transport and logistics
  • Retail and wholesale
  • Leisure and travel
  • Information Communication Technology
  • Healthcare
  • Financial services
  • Education
  • Creative, media and entertainment
  • Construction and manufacturing
  • Clean technology and energy
  • Business services
  • Agribusiness

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This Is The Most Attractive Country For Investment In Africa For The Second Time In A Row

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Are you looking for the best country for investment in Africa? Look no further because the Rand Merchant Bank (RMB) in South Africa has released a new study report.  It shows exactly where you should be thinking about for 2019. However, the study shows that the most attractive country for investment in Africa is not in the south of the continent.

According to this report by RMB, Where to Invest in Africa 2019, the business and investment environments in the continent has improved since 2017. However, the report singles out a few hurdles that continue to hinder more accelerated development in Africa. These issues include frail governance, reduced access to financing services, problems of infrastructure, rampant corruption in some countries as well as political unrests in some places. But generally, Africa, according to the report, has made important milestones that seek to attract and retain both local and foreign investments in the continent.

Investment Attractiveness Index for Most Attractive Investment Destination

The RMB uses an appropriate Investment Attractiveness index in order to make an assessment and rank the country. The index takes a look at the operating circumstances and economic environments of a country to gauge its potential to attract and retain local, international, and foreign investments. And Viola! Just like that and for the second year in a row, Egypt is the most attractive investment destination in Africa for 2019.

As expected, Egypt got a run for its money from the usual archrivals in the continent. Coming in second position from Cairo all the way down to Cape Town, was South Africa. But following closely in third position was Morocco, while Ethiopia and Kenya came in that order to complete the list of the top five most attractive investment destinations in Africa.

Why Is Egypt the Most Attractive Country of Investment in Africa?

The RMB report associates Egypt’s top rank in Africa with very important milestones. In order to have Egypt as the best, the report singles out the following reasons;

  • A diversified economic environment.
  • Escalating consumer market,
  • Growing availability of hard currency.
  • Stability in exchange rates.
  • Stable improvement in business and investment environments, predominantly in investment-related legal reforms.

Additionally, Egypt is the largest beneficiary of direct foreign investment in Africa. It also has the largest consumer market not only in North Africa, but also in the Middle East.

“Egypt’s economic gain keeps on dominating that of South Africa,” the report says “as South Africa’s growth projections and the size of its economy are lower than those of Egypt and this weighed down its investment ranking.”

Top Ten Countries for Investment in Africa

In addition to the top five most attractive investment destinations in the continent, other usual contenders in African development were named. In a consecutive order from fifth to ten position, the countries are as follows;

  1. Egypt
  2. South Africa
  3. Morocco
  4. Ethiopia
  5. Kenya
  6. Rwanda
  7. Tanzania
  8. Nigeria
  9. Ghana
  10. Ivory Coast

Countries with the Easiest Business and Investment Environments

Mauritius

The country that has the easiest business environment is Mauritius. This is followed by Rwanda while Botswana comes in third. In order to complete the best five countries where doing business is the easiest, the list includes South Africa and Seychelles in that order.

In conclusion, Egypt, Nigeria, and South Africa are the 2018’s three most dominant countries in Africa in terms of GDP. The combined market in these three countries makes up almost half of the approximated $7 trillion market in Africa. In order to maintain this investment attractiveness, Africa expects to improve individual business operating environments.

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