More than 40% (147) of Africa`s 345 companies with revenues exceeding R18.8 billion (US$1 billion) are based in South Africa, a new report by wealth tracker McKinsey Global Institute (MGI) says. SA is the leader of the pack because it registered a 5.5% yearly average growth between 2015 and 2021 against a continental average of 4.9%. Egypt comes in second with 43 billionaire companies, followed by Nigeria with 23 and Morocco with 20. A distant fifth is Angola, with nine billionaire firms. The rest of the African countries range between zero and 6.The report revealed that 230 of those firms were founded in Africa or by Africans. MGI estimates that by 2030, Africa`s large corporations would have a combined value of over R10 trillion. "We estimate that large companies in Africa could increase their revenues collectively by more than $550 billion by 2030 with ambitious strategies to access new markets, strengthen productivity, increase operational efficiency, and play a role in society," reads the report. The report notes that the Covid-19 pandemic slowed down economic growth on the continent as "the number of large corporations overall on the continent shrank compared to other regions and countries." Most of the top-performing companies on the continent, according to the report, are in the fields of mining, oil and gas, retail, telecommunications, manufacturing, and financial services.
Poverty and growth
In terms of population, Africa has the numbers. According to estimates from Our World Data, by 2030, Africa's most populous countries would be Nigeria, the Democratic Republic of the Congo, Ethiopia, Tanzania and Egypt.
The World Bank estimates that if things such as healthcare, economies, governance, and food security don't improve, nine in 10 extremely poor people will live in sub-Saharan Africa.
Consumption in Africa falls behind at the global level because most people on the continent live in conflict, famine and poverty.
Hence to unlock R56.4 trillion in consumer power, "this will take more than a growing population", says the report.
There's a need for political and leadership will at the country-to-country level for the continent to map a sustainable growth pattern.
"Successes achieved at granular levels in countries, cities, and sectors offer models to reaccelerate growth.
"Increasing digitisation, developing talent, collaborating more regionally, supporting more business champions, and building green businesses are just some of the ways Africa can increase productivity," reads the GMI report.
The report estimates that if things were done accordingly, 250 million Africans will join the consuming class by 2030 and they will present "an opportunity for businesses to offer affordable prices at scale, target expansion in growth hot spots, and innovate in local value chains."