Africa is home to many large companies: at least 345 companies have annual revenues of at least $1 billion and collectively, they produce revenues of more than $1 trillion, according to a new report by McKinsey & Co.
About 230 of these companies are homegrown, meaning they were started in an African country, often by a local entrepreneur. Between 2015 and 2021, homegrown companies performed slightly better than foreign companies in Africa, with a revenue growth rate of 5.5% and 4.4% per year respectively.
Sixty percent of Africa’s large companies are based in South Africa, Nigeria, and Egypt, so the continent’s smaller, faster-growing nations represent a promising next horizon for new business growth. These large companies operate in all major sectors on the continent, but 70% of the revenues they generate come from just six (out of 12) subsectors: oil and gas, mining, retail and consumer goods, financial services, manufacturing, and telecommunications.
It's estimated 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.
Source: McKinsey & Company