50 companies operating in Kenya have been named in London Stock Exchange’s inaugural ‘Companies to Inspire Africa’ report. Collectively, Kenyan companies make up 14 per cent of the total number of companies in the report, one of the highest concentrations of high growth companies in Africa.
28 per cent 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 per cent 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 per cent of companies, closely followed by East Africa with 26 per cent and Southern Africa with 22 per cent. South Africa, Kenya and Nigeria are the countries with the most companies in the publication, each represented by over 50 companies. Fast-growing companies are present across a wide range of sectors.
There is strong representation from innovative industries, with 22 companies in renewable energy and 40 in technology & telecoms. 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.
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: “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.”
A full searchable database of all of the companies along with a downloadable pdf of the publication can be found online at lseg.com/inspireafrica.
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.