Overview
This report is a follow-up to London Stock Exchange Group’s ‘Companies to Inspire Africa 2019’ report and seeks to highlight key activities of the nominated companies from 31 January 2019 to 31 October 2019. All market data and information was obtained from publicly available sources such as the companies’ respective websites, and has not been independently verified by PwC, Asoko Insight or London Stock Exchange Group.
- Since January 2019, 85 of the 360 companies identified in LSEG’s Companies to Inspire Africa 2019 have achieved significant milestones, including completing an M&A transaction, raising additional financing, expanding, and entering into significant joint ventures or alliances
- 28 companies secured over $1.4 billion in financing, either through completing an IPO, issuing a bond on their domestic or a cross-border exchange, or securing an investment from financial or strategic investors.
- 41 companies completed a product, geographic, or capacity expansion. These expansions included the introduction of new and innovative products, expanding into other African markets, or increasing production capacity.
- 12 companies completed an M&A transaction.
- 22 companies entered into an alliance or joint venture, which are critical to driving collaboration, particularly between the public and private sectors.
Access to financing
As of October 2019, approximately $4.3 billion was raised in the equity capital markets in Africa and by African companies in non-African capital markets. In the debt capital markets, approximately $4.1 billion was raised in non-local currency debt in 2019.
Within the bond market, green bond activity is on the rise. Following the introduction of a green bond framework in Nigeria and the launch of a market development programme by Kenya’s Capital Markets Authority, green bonds are now a viable financing solution for corporates.
Private equity financing is trending upward, with Africafocused firms having raised $1.7 billion in the first half of 2019 according to the African Private Equity and Venture Capital Association.
Organic growth through product and/or geographic expansion
Market penetration, product development, geographic expansion, and diversification are all strategies aimed at seeking organic growth that were employed by some of the companies featured in the Companies to Inspire Africa 2019 report.
Specifically, in the past year, 41 of the featured companies grew organically; this included increasing capacity in their existing market, moving into new geographies, introducing new product lines, or diversifying. Consumer services, and technology and telecoms were the leading sectors in organic growth. This was predominantly achieved through the development of new products and by accessing new markets.
The pan-Africanisation of companies operating in the private sector is a stepping-stone towards market integration and development.
