LSE Names 50 Kenyan Firms in ‘Companies to Inspire Africa’ Report

March 31, 2017
london stock exchange LSE

LSE Names 50 Kenyan Firms in ‘Companies to Inspire Africa’ Report

By Modupe Gbadeyanka

Fifty companies operating in Kenya are named today in London Stock Exchange’s inaugural ‘Companies to Inspire Africa’ report.

Collectively, Kenyan companies make up 14 percent of the total number of companies in the report, one of the highest concentrations of high growth companies in Africa.

About 28 percent of Kenyan companies operate in the renewable energy space, reflecting the country’s preeminent role in exploring alternative energy production on the continent.

Amongst those from the country are Cellulant – a mobile commerce company operating a payments ecosystem which connects financial sector customers, Mobile Network Operators and businesses to their consumers; D.light – a solar energy company delivering affordable solar home and power solutions for people without access to reliable energy; Eaton Towers – owns and manages a network of telecommunications towers in Africa; and Shop Soko – an ethical fashion brand and mobile technology-enabled supply chain platform.

The report identifies 343 companies from 42 African countries as the continent’s most exciting and dynamic small businesses; companies delivered impressive average compound annual growth rate (revenue) of 16 percent over a 3 year period 2013-2015; fast-growing companies appear in all regions of Africa. Highest concentration of companies from West Africa with 31 percent of companies, closely followed by East Africa with 26 percent and Southern Africa with 22 percent; and South Africa, Kenya and Nigeria are the countries with the most companies in the publication, each represented by over 50 companies.

Also, the report identified fast-growing companies present across a wide range of sectors, saying there is strong representation from innovative industries, with 22 companies in renewable energy and 40 in technology & telecoms.

The report highlighted industry, which covers areas such as oil and gas, construction, manufacturing and chemicals, is the biggest sector, with 23 per cent of companies in the report, followed by Financial Services which includes mobile banking, micro-credit, disruptive technology and Fintech, with 16 per cent, indicating that the continent has great promise for both traditional and more recent economic success stories.

Report highlights the important role of female entrepreneurship; 12 percent of the companies in the report are led by female CEOs, three times the average for companies across Africa

Today, company CEOs featured in the report were welcomed to London Stock Exchange Group by the Priti Patel MP and Xavier Rolet, CEO, London Stock Exchange Group at a special launch event to celebrate African companies’ success, ambition and uniquely African entrepreneurial spirit.

They were also joined by a broad range of Africa-focused investors, as well as senior representatives of African Development Bank Group, CDC Group and PwC, all partners on the report.

International Development Secretary, Priti Patel said: “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.

“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.”

Xavier Rolet, Chief Executive, London Stock Exchange Group said: “We are delighted to release the first edition of London Stock Exchange Group’s ‘Companies to Inspire Africa’ report, which follows the success of our research focused on the UK and European SMEs. For the first time ever, we have identified hundreds of Africa’s most inspirational and dynamic private companies. The report demonstrates the huge role that small and medium sized enterprises are playing as the driving force behind African economies: developing skills, creating high quality jobs and delivering growth.

London Stock Exchange has made it our mission for over 300 years to support access to growth capital for small and large companies in all parts of the world. We are proud to play our part in this great economic journey by shining a light on Africa’s success stories. We are also continuing to work in partnership with African stock exchanges to help develop robust, efficient and transparent capital markets to raise finance for companies like the ones listed in this report and thousands of others to realise their potential.”

LSEG’s “Companies to Inspire Africa” report included contributions from government, including from the UK Secretary of State for International Development, Priti Patel MP;  Vice-President of the European Commission, Jyrki Katainen; the Maltese Minister of Finance, Prof Edward Scicluna; and Lord Boateng, former UK High Commissioner to South Africa.

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.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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