Best of tar 2014 rankings by The Africa Report

NIGERIA PDP prays that the opposition fall apart

MOïsE KATuMbI The reluctant politician in Congo’s powerhouse

w w w.t hea f r ic a r ep or t .c om

the africa report

TOP

PAX AFRICANA Fragile peace and hot conflicts face AU

N ° 5 7 • f e b r u a r y 2 014

9th edition exclusive

ranking

African companies

• Corporate boom slows • Firms poised for global recovery • Finance, retail and agribusiness lead rally

monthly • n° 57 • february 2014

groupe jeune afrique INTERNATIONAL EdITION

Algeria 550 DA • Angola 600 Kwanza • Austria 4.90 € • Belgium 4.90 € • Canada 6.95 CAN$ • Denmark 60 DK • Ethiopia 75 Birr • France 4.90 € • Germany 4.90 € • Ghana 7 GH¢ • Italy 4.90 € • Kenya 410 shillings • Liberia $LD 300 • Morocco 50 DH • Netherlands 4.90 € • Nigeria 600 naira Norway 60 NK • Portugal 4.90 € • Sierra Leone LE 9,000 • South Africa 30 rand (tax incl.) • Spain 4.90 € • Switzerland 9.90 FS • Tanzania 6,500 shillings • Tunisia 8 DT • Uganda 9,000 shillings • UK £ 4.50 • United States US$ 6.95 • Zimbabwe US$ 4 • CFA Countries 3,500 F CFA

TANK MC

cartier.com

MANUFACTURE MOVEMENT 1904 MC SINCE THE CREATION OF THE FIRST TANK WATCH IN 1917, THE TANK COLLECTION HAS CONTINUED TO BREAK NEW GROUND. THE INCREDIBLY REFINED AESTHETICS OF THE NEW TANK MC WATCH ARE FITTED WITH THE CARTIER MANUFACTURE MOVEMENT 1904 MC. ESTABLISHED IN 1847, CARTIER CREATES EXCEPTIONAL WATCHES THAT COMBINE DARING DESIGN AND WATCHMAKING SAVOIR-FAIRE.

frontline | what to watch in 2015

2015 AfricA cup of NAtioNs 17 Jan – 8 feb EQuAtoriAL GuiNEA cafonline.com

iNvEstiNG iN AfricAN MiNiNG iNdAbA 9-12 february Cape Town | south AfricA miningindaba.com

hArvArd busiNEss schooL AfricA busiNEss coNfErENcE 27 feb – 1 March

The hague | NEthErLANds ntaganda faces 18 charges of war crimes and crimes against humanity. icc-cpi.int M

powEr-GEN AfricA 15-17 July Cape Town | south AfricA Conference on electricity provision in africa. powergenafrica.com

cAiNE prizE for AfricAN writiNG July oxford | uK www.caineprize.com

Lima | pEru Bankers and academics discuss global economic governance. 2015lima.gob.pe

22Nd AfricA oiL wEEK November

worLd EcoNoMic foruM oN AfricA 3-5 June Cape Town | south AfricA weforum.org

worLd bANK/ iMf ANNuAL MEEtiNGs 9-11 october

Cape Town | south AfricA globalpacificpartners.com

uN GENErAL AssEMbLy 15-28 september

AfricAcoM November

new YorK | us The world’s presidents and diplomats set out the global agenda. un.org

Cape Town | south AfricA one of africa’s largest technology conferences. africa.comworldseries.com

calendar 2015

icc triAL of coNGoLEsE MiLitAry LEAdEr bosco NtAGANdA 2 June

BosTon | us africabusinessconference.com

AfricA cEo foruM 16-17 March geneva | switzErLANd theafricaceoforum.com

sudAN prEsidENtiAL ELEctioNs 2 April Afdb ANNuAL MEEtiNG 25-29 May aBidjan | côtE d’ivoirE The Board of governors will elect a new president to succeed donald Kaberuka in september. afdb.org

cAr prEsidENtiAL ELEctioNs June

SIA KAMBOU/Afp

ELEctioN buzz the year 2015 will be dominated by elections as hundreds of millions of Africans head to the ballot box to vote for new presidents and governments. in west Africa, Nigeria’s president Goodluck Jonathan’s battle for re-election will take centre stage (see page 20) on 14 february, but voters will also elect leaders in Guinea in June, in togo in July and in côte d’ivoire (pictured) in october. the East of the continent is no less busy, with Ethiopian federal elections in May, presidential and general elections in burundi and somaliland respectively in June, and general elections in tanzania in october. the africa report

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business top

african companies The corporate boom weakens By Gemma Ware

ho has been benefiting most from Africa’s high rate of gross domestic product (GDP) growth? It is a questionthathassparkeddebateamong economists and activists in recent months. Corporate giants based both in Africa and abroad have been profiting from the continent’s sustained high growth over the past decade, with few of the spoils trickling down to Africa’s populations (see TAR 56, Dec-Jan, ‘You can’t eat GDP growth’). Our annual analysis of Africa’s Top 500 companies shows that the growth of most of the continent’s largest businesses has slowed considerably since 2010. The combined turnover of Africa’s Top 500 companies, based on annual reports for the 2012 financial year, was $736.8bn, up 3.5% on 2011. The growth in revenue of Africa’s corporate giants over the past decade has been re-

markable – it is now nearly three times the $257.2bn it was in 2002. While revenue grew 18% in 2010, growth has slowed down in recent years. At 3.5%, Africa’s corporate giants are lagging behind the continent’s overall GDP growth rate in 2012, which was 6.2%, according to the International Monetary Fund. “We’re going through a slightly interesting phenomenon around the world where emerging market economies [...] have actually decelerated and the earnings haven’t been quite what we expected,” says Yvonne Ike, West Africa chief executive of Renaissance Capital. But she is optimistic: “I definitely see therecoverycontinuing.” InNigeria, Ike says the most interesting companies to watch are in agriculture, power and oil and gas production. African corporates may also have to navigate some choppy waters in the coming year. There will be elections in the continent’s four largest economies: South Africa, Nigeria, Egypt and Algeria. ● ● ●

illustration: rafael ricoy for tar

Turnover for Africa’s top 500 companies rose by only 3.5% in 2012. Many companies have been looking to issue corporate bonds before the global financial headwinds turn against emerging markets. The number of IPOs is also in decline

business top 500 african companies

Transport $34.5bn

-9.4%

Diversiﬁed $60.2bn +9.7%

Financial services $34bn +25.5%

-3.6%

Telecoms $78.2bn +2.9% Mining $62bn

4.7% 4.6% 10.5% 8.4%

Total 2012 turnover

Agribusiness** $51.8bn+10.2%

Oil & Gas $171bn

5.1%

% change

3.5%

Retail

$55.9bn Utilities

$30.6bn

Other***

$35.6bn

* Includes paper, steelmaking, electrical equipment, textiles, automobile, chemicals & plastics

Construction -13.9% $37.7bn

7.6% 4.2% 4.8%

+1.2%

Manufacturing* $85.4bn +5%

11.6%

$736.8bn 8.2%

23.2%

+8.1%

+8,9%

+20.7%

** Includes food & drink *** Includes media, healthcare, services, tourism

Top climbers

% turnover change

Company

Country

RMI Holdings (#165) ________________________

South Africa, ﬁnancial services _____________ 242%

Eterna Oil & Gas (#251) ____________________ Al Ezz Flat Steel (#292)_____________________ Steinhoff Int. Holdings (#10) ______________ Total Côte d’Ivoire (#271) __________________

129% 111.9% South Africa, wood & paper ________________ 79.3% Côte d’Ivoire, oil & gas _________________________ 78% Nigeria, oil & gas

_____________________________

Egypt, steel & metals

______________________

Biggest fallers Company

% turnover change

Country

Egyptian Iron & Steel Co. (#448) _________

Egypt, steel & metals ____________________ -47.5%

Press Corporation (#470) __________________

Malawi, diversiﬁed ______________________ -43.5%

Rogers & Co (#494) _________________________

Mauritius, diversiﬁed____________________ -39.9%

Times Media Group (#287) ________________

South Africa, media _____________________ -36.5%

DRDGold (#490)______________________________

South Africa, mining _______________________ -34% SOURCE: JEUNE AFRIQUE TOP 500 COMPANIES

By region

Northern Africa

2012 total turnover

$214.4bn 0.8%

$11.8bn

public and private

turnover change since 2008 2012 total proﬁts East Africa

West Africa

$53.3bn

30.6%

$3.8bn

15%

$14.4bn

54.8%

$0.7bn

Southern Africa

Central Africa

$14.6bn

Key reforms such as Nigeria’s long-delayed Petroleum Industry Bill are unlikely to make progress before elections, meaning investors may be unwilling to take long-term views on the country’s equity and bond markets. In addition, security crises in South Sudan, the Sahel and the Central African Republic show few signs of abating. Growing optimism about a recovery in the United States (US) and less doomsaying about the eurozone could help to boost the global economy. But at the same time, the tapering of the US Federal Reserve’s quantitative easing policy is set to put pressure on emerging markets, as US investors will have less incentive to seek out riskier investments. Managing currency risks could be an important factor next year for both African and multinational companies.Meanwhile,thecontinent’s commodity exporters will be watching the Chinese economy closely to see whether it will go headlong into a credit crisis or towards robust consumption-led growth. Lack of access to finance has been a key constraint on African corporate growth, but new avenues could start opening up for some larger firms. The rush by African governments to issue sovereign bonds could provide a good benchmark for firms seeking to launch their own corporate bonds. The Nigerian corporate bond market has come of age, with the country’s Securities and Exchange Commission reporting that the amount raised by corporates between 2010 and 2013 was more than two and a half times the bonds issued between 1960 and 2009. Some firms hurried to the market in 2013 before the Federal Reserve tapering began, including Nigerian lenders Guaranty Trust Bank and Access Bank. In East Africa, Kenya Power has indicated its intention to launch a corporate bond. ●●●

Sector by sector

$0.5bn

$440.1bn 50.5%

$34.7bn

Some sectors fared better than others. Financial services companies increased their turnover by 25.5%, but total turnover for the mining sector in 2012 dropped 9.4% to $62bn (see graph). The vast majority of the companies in our list – 394 – are privately owned. Of the rest, 60 – including the top two energy giants, Algeria’s Sonatrach (#1) and Angola’s Sonangol (#2) – are publicly owned, with the the africa report

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top 500 african companies business

remaining 46 under private-public ownership. Just under half – 233 – are listed on African stock exchanges, and the same number publish annual reports and have audited accounts. This means that data for half of Africa’s largest companies are difficult to find. Corporategovernanceandtransparency is improving, but it remains a continental challenge. According to analysts at Enko Capital, there have been 183 listings on African stock exchanges since 2007. Listings have slowed down dramatically: in 2007, there were 62 initial public offerings (IPOs), with the majority in South Africa. In 2013, there were just 13 IPOs. mid-sized firms struggle

Perhaps even more worrying for African economies are the figures for the companies that did not make it into the Top 500. Of the 1,037 companies that responded to our questionnaire, the companies ranked 501 to 1,037 had a total turnover of $39.96bn. This was a 23% drop from $51.96bn in 2011. It shows that medium-sized African companies, with high overheads and restricted access to finance, are struggling to maintain their revenue levels. The growth of small companies is difficult to measure. In Nigeria, Ike says the information technology sector is growing at around 23%. “The companies there currently are much smaller, so it will take a while for them to be in the Top 500, but some of these companies are growing at a rate of more than 100% a year.” Telecoms groups such as MTN (#4) and Vodacom (#11) are starting to target some of these smaller companies, a sign of potential growth to come (see page 76). When it comes to foreign ownership, 62 of the Top 500 companies are subsidiaries of multinationals. But as our list only deals with locally registered subsidiaries and those listed on stock exchanges, it does little to show the results of the vast array of multinational companies operating in Africa. Many multinationals do not publish a country-by-country breakdown of their profits and revenue, making them difficult to assess. New legislation in the US and Europe may help with this. If African GDP growth rates continue to rise as predicted, the calls for multinationals to be more transparent and to list on African stock exchanges are likely to get ever louder. ● the africa report

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opInIon

Amadou Sy

Senior fellow, Africa Growth Initiative, Brookings Institution

Paving the way for private sector growth

n order to achieve its transformational agenda, Africa will need to rely heavily on its private sector. As recently noted by economist Dani Rodrik, sub-Saharan Africa is less industrialised today than it was in the 1980s. In addition, private investment in Africa’s modern industries remains too low to sustain structural transformation. One reason private investment has remained low is that African companies face serious financing challenges. For example, compared to other regions, bank credit remains low and capital markets remain shallow. Good corporate governance can help remove some of these financing challenges. As Arthur Levitt, the former chairman of the United States Securities and Exchange Commission, once noted, “If a country does not have a reputation for strong corporate governance practices, capital will flow elsewhere […] All enterprises in that country – regardless of how steadfast a particular company’s practice may be – suffer the consequences.” A number of sub-Saharan African countries have recently developed corporate governance codes. In October 2013, the Africa Governance Network was launched with the aim of encouraging best practices and building capacity in corporate governance in Africa. Building deep capital markets takes time. As a result, standards for good corporate governance in Africa should go beyond the traditional focus on publicly listed domestic companies to include privately held firms, the public sector and foreign firms. There are at least three issues that African policymakers and standard-setters could address:

Strengthening public governance will benefit corporate governance. In most countries, the government is not just a regulator but also a customer or a business partner. According to a PricewaterhouseCoopers survey, 73% of African managers are concerned about over-regulation and 63% said that bribery and corruption were threats to their companies’ growth prospects. This points to the role of governments in supporting the credibility of corporate governance practices.

Good corporate governance should be a standard for foreign firms too. Foreign direct investment often results in large financial outflows from tax evasion, the underpricing of concessions and trade mispricing. African policymakers should work with developed countries and require full public disclosure of the beneficial ownership of companies as well as strengthen multilateral rules on taxation.

The role of accountants and auditors as gatekeepers should be encouraged but monitored. In a context where boards of directors are often the only institution able to reduce conflicts of interest between shareholders and managers it is crucial for directors to be able to count on reliable information provided by external accountants and auditors. It is therefore important to uphold high standards of quality on these gatekeepers and provide the proper incentives for their independence. ●

business top 500 african companies

mining

top 10 mining companies Rank in top 500

Precious little to celebrate Mining turnover dropped by 9.4% in 2012, and companies are now dealing with the threats of industrial action and utility tariff increases

CoUntRY

angloGold ashanti

South Africa

De Beers Consolidated Mines

South Africa

6.1

office Chérifien des phosphates

Morocco

5.8

Gold Fields

South Africa

5.4

kumba iron ore

South Africa

5.4

anglo american platinum Corp.

South Africa

5.1

impala platinum Holdings

South Africa

3.3

african Rainbow Minerals

South Africa

2.1

kansanshi Mining

Zambia

Harmony Gold Mining Co.

South Africa

$62bn

he year 2013 heralded getting back to basics as mining companies responded to shareholders’ vigorous demands to focus on controlling costs and generating returns. Investors are now extremely cautious about funding projects and, in the case of larger companies, have been calling for money to be returned to shareholders. Consulting firm EY says the “twin capital dilemmas” – access to capital and capital allocation – are the biggest risks mining companies will face in the year ahead. The total turnover for mining companies in our ranking, based on year-end 2012 figures, was $62bn, a drop of 9.4% since 2011 and the lowest since 2009. These figures show only the start of the turmoil in the South African industry brought on by the Marikana massacre in August 2012.

Total turnover of 41 mining companies in the Top 500, based on 2012 results, down 9.4%

4.7

In the meantime, chief executives of the world’s largest mining companies have been replaced and reshuffled. In the case of South Africa’s Lonmin (#100), Ian Farmer stepped down with health issues and was replaced by Ben Magara in July 2013. While tensions between platinum producers and organised labour have dissipated somewhat, industrialactionhasnot.Northam Platinum’s (#296) Zondereinde mine has become the focal point for the stand-off about wage demands. At the time of writing,

NationalUnionofMineworkers (NUM) members had been on strike for two months. In a sign that attitudes are hardening, the company has not strayed materially from its original offer and has delayed mediation on the matter. NUM’s rival, the Association of Mineworkers and Construction Union, received permission in late 2013 to strike at Anglo American Platinum(#31)andImpalaPlatinum Holdings (#48), indicating that strikes will persist well into 2014. A slump in gold prices – hovering at around $1,240/oz in early 2014 – is not all that is worrying gold producers. In an ominous sign for AngloGold Ashanti (#16), Gold Fields (#26) and Harmony Gold Mining (#87), Brian Dames, the outgoing chief executive of South Africa’s state-owned electricity utility Eskom (#6), has sig-

3.4 3.4

changing faces

3.3

3.1

While the past few years have seen sustained turnover for copper producers, diamond miners have experienced a slump. Revenue for gold producers also picked up after the doldrums of the post-2008 financial crisis, but their turnover and profits are now under strain after a 28% drop in the price of gold in 2013.

2.2

2.4

0.9

Copper 2009 2010 2011 2012

0.6 Gold

2009 2010 2011 2012

2 1.8

Warren Dick in Johannesburg

($bn)

0.6

6.6

nalled its intention to re-open tariff negotiations with regulators to plug its R225bn ($20.8bn) funding gap. This may lead electricity costs to rise further than the agreedupon 8% per annum until 2018. It has not been all bad news. In Morocco, the Office Chérifien des Phosphates (#23) secured a $271m loan from German developmentbankKfWinOctober2013. It will primarily use the money for the construction of wastewater treatment stations as part of its programme to increase production to 50m tn per year by 2020. As part of Canadian firm First Quantum’s plans to become one of the largest copper producers in the world, its Zambian subsidiary Kansanshi Mining (#74) is building a new smelter with the capacity to process 1.2m tn of copper concentrate per year. ●

Turnover by mineral

0.7

tURnoveR in $bn

CoMpanY

Diamonds 2009 2010 2011 2012 the africa report

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A New Major is Emerging in Africa.

An ant is only as strong as its colony. A company only as strong as its people. Our vision, resilience and teamwork have led to the successful conclusion of a landmark transaction set to redeďŹ ne the sector and position us as the ďŹ rst indigenous major. This is just the beginning. We are Oando. We are proudly African.

business top 500 african companies

oil & gas

top 10 oil & gas companies rank in top 500

Oil companies look to the East for growth International energy producers are shifting their focus to East Africa as local companies in established markets expand their activities

s companies develop new oil and gas fields in East Africa – from Mozambique in the south up to Tanzania, Kenya and Somalia – governments will be working hard to get the most they can out of the resources. Analysts suggest that the licensing environment is becoming more difficult in Africa, with governments establishing ever more onerous requirements for international companies and, in some part, discouraging independent operators. But, with the United States getting closer to energy self-sufficiency, the global energy landscape is also changing – and the new producers will be looking East to get the most out of their reserves. There are 65 oil and gas companies in our Top 500 ranking,

$1.7bn

Cost of Oando’s takeover of the ConocoPhillips assets in Nigeria

Oando is moving into the upstream sector

tUrnover in $bn

CoMpanY

CoUntrY

Sonatrach

Algeria

69.5

Sonangol

Angola

33.7

Samir

Morocco

6.5

oando

Nigeria

4.3

total South africa

South Africa

3.9

naftal

Algeria

3.8

Middle East Oil Refineries*

Egypt

3.8

Sonelgaz

Algeria

2.4

petroSa

South Africa

2.3

kenolkobil

Kenya

2.2

*IN ITALICS 2011 RESULTS

however, will apparently require unconventional methods, which will be expensive. At Africa Oil Week in Cape Town in November 2013 Lúmen Sebastião, from Angolan oil giant Sonangol’s (#2) exploration division, told The Africa Report the state-owned company was busy re-evaluating its ultra-deep regions and the Kwanza onshore and offshore fields using new 3-D technology. He said it had already revealed “lots of new prospects”.

with a total turnover based on year-end 2012 results of $171bn. This represents 23.2% of the total turnover, making it the largest sector by quite a margin. Yet oil and gas revenue has stagnated, only increasing 1.2% on the previous year. There has been stability in the oil price – which averaged $110 per barrel during the past three years – but some analysts are predicting a gradual downward movement in prices in 2014. Nevertheless, 2013 was a very good year for Algeria’s Sonatrach (#1), Africa’s largest company, which in late October announced that it had made its largest discovery in 20 years. The field is in Tamguid Messaoud, 112km from the Hassi Messaoud field, Algeria’s largest, and is estimated to hold 1.3bn barrels. Recovering them,

world-class gas

SUNDAY ALAMBA/Ap/SipA

Sebastião said Sonangol planned a great deal more offshore drilling, particularly in blocks that had been neglected by the majors. He said the government’s plan is to boost production from today’s 1.8m barrels per day (bpd) to 2m bpd and to sustain that level “for at least 10 years”. In December 2013, Sonangol, Cobalt and BP announced that they had discovered world-class gas reserves in the Lontra deepwater well. In Nigeria, local oil companies are set to take advantage as multinational oil companies shed some of their onshore oil blocks. Nigeria’s Oando (#35) aims to complete its $1.7bn acquisition of US company ConocoPhillips’ Nigerian assets by the end of January 2014. The deal will boost Oando’s oil output from just 4,000bpd currently to more than 43,000bpd. Oando chief executive Adewale Tinubu told the Africa Oil Week in Cape Town that ongoing disinvestment from

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Nigeria by major international companies was creating “valuable new opportunities” for Nigerian companies and would ultimately boost national oil production. Oando has until now been predominantly a downstream company, but Tinubu said that after the acquisition three-quarters of the company’s assets would be in the upstream sector. total eclipse

Total (#37) is set to become not only South Africa’s largest fuel company but also one of its main producers of solar energy. In November 2013, South Africa’s Department of Energy selected US photovoltaic manufacturer Sun-

1.3bn

Barrels of reserves discovered at Tamguid Messaoud by Algeria’s Sonatrach

Power, which is majority-owned by Total, as the preferred bidder for a $200m project to build an 86MW solar farm in Prieska in Northern Cape Province. Egypt’s ministry of petroleum announced in November 2013 that it is considering selling a 20% stake in Middle East Oil Refineries (#40), known as MIDOR. He said the government expects to make “$1-1.5bn” from the sale. Egypt owes at least $6.2bn to foreign creditors in the petroleum sector, and revenue from the sale of the MIDOR stake will go towards settling these debts. Anothercompanywithcashflow problems is South Africa’s stateowned PetroSA (#63), which is

at an advanced stage in talks to buy Engen’s petrol stations in the country for R11-18bn ($1-1.7bn). If PetroSA cannot find the money by then, it expects to ask the governmenttomakeupthedifference. PetroSA urgently needs to find new sources of gas for its Mossel Bay gas-to-liquidrefinery,asthenearby offshore well it has used is nearly exhausted. It is feverishly drilling at the nearby F-O field in the hope of a major find but has had in the meantime to import liquefied natural gas from the Middle East to keep the refinery ticking, which has put additional strains on its cash reserves. ● Gregory Mthembu-Salter in Cape Town

profile

Seplat

Oil producer, Nigeria

Seizing the moment as internationals retreat

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SEPLAT

f the future of Africa’s largest oil and Well-connected and able deftly gas industry is tied in with the to manoeuvre local politics, 25 homeemergence of independents, Seplat grown companies operate around 10% Petroleum Development Company of Nigeria’s 2.5 million barrels of oil per is a good beacon of how the new market day. That figure could double in the next is shaping up. five years, while nearly half of the The country’s 2010 Nigerian Content growing domestic gas market could Act – which specifies independent, local be controlled by indigenous companies, operators be given priority in acreage Seplat officials believe. awards – has seen a host of companies Seplat has positioned itself to take spring up, some literally overnight, advantage. Augustine Avuru, the even as international oil companies have gregarious managing director and winner backed out of the troubled Niger Delta. of Ernst & Young’s Entrepreneur of the Backed by fiscal incentives, Seplat Year award in 2013, last year confirmed leads the ranks of bold newcomers who plans to launch a dual listing on the have turned on the taps in marginal fields London and Lagos stock exchanges. long left fallow. Formed by a merger between two local Seplat leads the ranks of bold companies in 2009, the group newcomers who have turned snapped up three large Shell on the taps in fields left fallow oilfields the following year. Under a 45-55% joint venture with Nigerian Petroleum Development Regulatory approval is yet to come, Company, output has soared from 18,000 but the Nigerian Stock Exchange All Share barrels per day (bpd) to 60,000 bpd. Index expects at least five new companies Exploration also continues apace. to begin trading by the year-end. FTSE-listed Afren, which operates a joint Oil theft and bunkering have gathered venture with First Hydrocarbon Nigeria pace as the 2016 elections draw closer. and Shoreline Natural Resources, saw Some analysts say this could weigh its share price jump 9% in November heavily on the valuation of companies. on the discovery of a “giant” new oilfield. In 2013, Oando (#35) finished 11% down

on the year in Johannesburg and London. But the shift in the playing field could reveal Nigerian companies can manage operating risks better. Avuru says theft in one 35km stretch of pipeline Seplat acquired from Shell has been cut to 1%. Nevertheless, the path to high returns remains rugged. Critics say local smallholders provide another potential avenue for corruption – providing indigenous cover while acting as shell companies. And a lack of policy clarity remains a drag. With the Petroleum Industry Bill unlikely to materialise ahead of polls, several prospective sales have snagged on drawn-out court cases. Nevertheless, the outlook remains bright for those willing to take the risks. Not yet in the Top 500, these local companies may well appear in future rankings. ● Monica Mark in Lagos

business top 500 african companies

telecoms

top 10 telecom companies rank in top 500

Much more to do to reach the masses High-speed internet for corporate clients is the big opportunity this year, but to extend mobile penetration to first-timers, prices will have to fall

s merger momentum has grown in the global telecom sector, Africa has not been left out. In 2013, France’s Vivendi finalised a deal to sell its 53%shareofMarocTelecom(#46) to the United Arab Emirates group Etisalat for $5.7bn. It remains to be seen how Etisalat will position the newlyacquiredoperations,manyof them in Francophone West Africa, alongside its operations in Nigeria. Other deals could be on the cards soon. French group Orange con-

MTN and Bharti Airtel subsidiaries in the Top 500 rankings

CoMpanY

CoUntrY

Mtn Group

South Africa

15.9

vodacom Group

South Africa

8.2

vodacom South africa

South Africa

6.9

Mtn South africa

South Africa

4.9

Mtn nigeria

Nigeria

4.6

telkom

South Africa

3.9

Global Telecom Holding*

Egypt

3.6

Groupe Maroc telecom

Morocco

3.5

Maroc telecom

Morocco

2.6

Blue Label telecoms

South Africa

2.2

*IN ITALICS 2011 RESULTS

firmed toour sistermagazine Jeune Afrique that it is re-evaluating its operations in Africa. The turnover of the 34 telecoms companies on our Top 500 list stood at $77.6bn, contributing 10.5% of the total. Turnover grew by 2.1% between 2011 and 2012. Africa still has a long way to go with mobile penetration. A 2013 report from the GSMA found the continent had 253 million unique subscribers. That means the mobile penetration rate is just 31%.

profile

Vodacom telecoms group

Busy year ahead for the South African comms giant In September 2013, Vodacom Group (#11) announced it was in exclusive talks to buy fixed-line operator neotel. Chief executive Shameel Joosub said the fibre it would acquire would allow it to “develop entirely new services such as fibre to the home and business”. Vodafone is cash rich after it sold its 45% stake in United States (US) operator Verizon Wireless

for $130bn in September 2013 – $10bn of which it put into an investment pot for ‘project Spring’, which could include South Africa and tanzania. but speculation mounted in late 2013 that US firm At&t was eyeing a takeover of Vodafone, which owns 65% of Vodacom. Some analysts said this could lead At&t eventually to sell Vodafone’s African assets, with Orange mooted a potential buyer.

tUrnover in $bn

nAdIne HUttOn/blOOmberg VIA getty ImAgeS

A spokesman for Vodacom said this speculation was “totally unfounded”. With mtn, Vodacom faces new regulations in South Africa that will drop the mobile termination rate (the money one operator pays another for terminating a call on its network) from r 0.40 ($0.04) to r 0.20 by march 2014, and r 0.10 in 2016. the move favours smaller operators such as Cell C and 8ta. ● G.W.

PeterLyonsoftheGSMAsaysprices will have to drop in order to attract new customers. “Now it’s $13.6 averagerevenueperuser[permonth]. The next 200 million to 300 million customers are going to be significantly below that,” he says. speed means business

Helped bythe arrivalof high-speed broadband, big firms will target corporate clients. In August 2013, South Africa’s MTN Group (#4) rolled out its MTN Cloud Services to target smaller companies in Nigeria, Ghana, Zambia, Uganda and Côte d’Ivoire. Vodacom Group (#11) also has its sights on corporate clients (see box). Telkom (#38) is gearing up for a battle in February, when public hearings are due onlocalloopunbundling,aprocess whereby the South African stateowned incumbent will be forced to allow other operators to use its fixed-line infrastructure. Governments are trying new ways to tax the telecoms sector. In Kenya, Safaricom (#110) complained about a 10% levy on mobile-moneytransfersintroduced inlate2012.Safaricomofficialssaid the move caused it to absorb costs of $4.6m in 2012 and 2013. Still struggling to make its investment profitable, Indian firm Bharti Airtel is looking to sell its African infrastructure. The sale of approximately 15,000 towers could help reduce its debt burden. Airtel now has seven of its African subsidiaries on the Top 500 company list, the same number as MTN. ●

the africa report

Gemma Ware

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f e b r ua r y 2 014

Getty Images •

OPENING UP A WORLD OF BRANDS

CFAO has been the partner of choice for the biggest international brands in Africa for 125 years. Whether fulﬁlling mobility requirements, meeting demand for consumer goods, facilitating access to high-quality pharmaceutical products, supporting infrastructure development or contributing to the expansion of new technologies, CFAO’s many businesses allow it to meet its customers’ needs. CFAO is dedicated to developing major brands on an expanding continent.

www.cfaogroup.com Alcohol abuse is bad for your health. Drink responsibly.

business top 500 african companies

retail

top 10 retail companies rank in top 500

Local market promise Many of the continent’s largest retailers are dialling back their expansion plans and looking to make smaller advances closer to home

CoMpanY

CoUntrY

tUrnover in $bn

Shoprite Holdings

South Africa

9.7

Massmart Holdings

South Africa

7.2

pick n pay Stores

South Africa

Spar Group

South Africa

5.1

Woolworths Holdings

South Africa

3.4

edgars Consolidated Stores

South Africa

3.1

JD Group

South Africa

Masscash

South Africa

2.7

Foschini

South Africa

1.9

Clicks Group

South Africa

1.9

n a year that saw many African retailers pushing ahead with plans to expand on the back of growing consumer demand, 2013 was tempered by tougher conditions for consumers in the continent’s biggest market, South Africa. While the honeymoon is not yet over, a degree of reality has certainly appeared in the valuations of retailers listed on the Johannesburg Stock Exchange. As ever, there has been a wide degree of variation in the fortunes of some of the continent’s largest retailers. The total turnover of retailers in the Top 500 companies – based on year-end 2012 results – was $55.9bn, up 8.1% from $51.8bn in the previous year. This represents 7.6% of the total turnover of the Top 500 companies. The large majority of Africa’s major retailers are headquartered in South Africa: 16 of the 27 retailers in the ranking are based in South Africa, representing 94% of turnover. outsider chances

For South Africa’s Pick n Pay (#13), managers are trying to regain the supermarket’s lustre as the family-controlled company fights to win back lost market share and improve its weak margins. The company took the dramatic step of recruiting an outsider as CEO in February 2013 – it has traditionally appointed leaders from within its own ranks – in the form of Richard Brasher (see profile), who ran Tesco in

Akintunde Akinleye/ReuteRs

The tills are still ringing in Nigeria for ShopRite and Mr Price Group

50%

Rise in the share price of Pick n Pay between July and December 2013

the United Kingdom. Investors seem to like what they have seen and heard from Brasher, and the company’s share price rose 50% between July and December 2013. For other retailers, like Edgars Consolidated Stores (Edcon) (#52) it has been a fight for survival. Private equity company Bain Capital bought out the company in 2007, leaving it saddled with R20bn ($1.9bn) in debt. Despite selling off its debtors book to Absa (now Barclays Africa Group) for R8bn in 2012, the company has paid off very little of the original amount, leaving it in an extremely precarious position. Edcon’s fortunes can be seen in the spiralling cost of rolling over

its debt. It issued six-year eurobonds with a 13.4% coupon in November 2013. Moody’s Investor Services rated them Caa2, eight levels below investment grade. Edcon chief executive Jürgen Schreiber has the task of trying to resuscitate the core brand while at the same time attempting to reduce the massive debt burden. While a public listing could provide a solution, going to market when South African consumers are in dire straits is not a foregone conclusion. The year 2014 could be decisive for the beleaguered company. Yet for others, like Durbanbased Mr Price Group (#99), 2013 yielded only good news:

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top 500 african companies business

expansion plans

Upper-end retailer Woolworths (#47) has reassessed its expansion into the rest of Africa after the decision to close its three stores in Nigeria in November 2013. The announcement cited logistical difficulties as the main reason for withdrawing, and it caught many by surprise. Chief executive Ian Moir says Woolworths will continue to expand into countries bordering South Africa, where the company knows there is a demand for its products and where import duties and the cost of moving goods are lower than in Nigeria. In East Africa, Kenya-based Nakumatt Holdings (#350) continues to pursue its ambitious growth strategy despite the Westgate Mall tragedy in Nairobi in September 2013 that destroyed its flagship store. The company intends to add an additional 2530 stores by mid-2015. It currently operates 40 stores and plans to open a refurbished Westgate branch. Besides organic growth needed to reach this target, the company is in negotiations to purchase three stores in Tanzania from South Africa’s ShopRite (#8) for TSh4bn ($2.5m). The acquisition will complement the company’s existing branch in Moshi. For ShopRite, the possible divestiture comes on the heels of a warning from the Tanzanian government that it was importing too much of its merchandise from South Africa. ● Warren Dick in Johannesburg

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profile

Richard Brasher Chief executive, Pick n Pay

Quick off the starting block

fter the failure of his short where Brasher’s ‘Big Price Drop’ tenure heading Tesco in became known as the ‘Big Price Flop’. the United Kingdom – where Pick n Pay’s customer loyalty he was under pressure programme, called Smart Shopper, also to reverse a rapidly declining market required urgent attention. Some 60% of share – Richard Brasher needed a the company’s R70bn ($6.4bn) in revenue second chance to prove himself. Indeed, goes through the Smart Shopper card, he has made a stellar start in his role which rewards customers with points as chief executive of South Africa’s that can be redeemed for goods. It had second-largest food retailer, Pick n Pay. become too costly for the retailer and The Englishman took over in February had contributed to the razor-thin margins 2013 and immediately set about of recent years. Under Brasher, Pick n addressing a long list of problems that Pay has revised its rewards system. had led the iconic company to slip in the Customers can now check their points eyes of customers and investors alike. In in stores or through a new smartphone April 2013 the company announced application. They can also access a yearly drop in earnings of 31%, a sure rewards immediately. sign of the need for a turnaround. Top of the to-do list was the need Regarded as an aggressive to complete the company’s move to cost-cutter during his tenure at Tesco, a centralised distribution system that Brasher also instituted a retrenchment would drive down costs and improve the programme that reduced staff numbers availability of inventory. Pick n Pay had by more than 400. These factors have all missed out on this trend and had been contributed to vastly improving results trying to play catch-up with the and a surging share price. The competition. In the rush to correct this, company’s interim results saw Pick n Pay the company failed to grow as quickly grow revenue that indicates it may as its competitors, especially in terms be beginning to win back market share, of establishing new store space, and this led to Interim results indicate that a declining market share.

the company may be beginning to win back market share

Brasher has moved quickly to correct this. The company noted in its interim results in October 2013 – the first since his appointment – that it had opened 44 new stores in the 26-week period up to August 2013. The company now has more than 1,000 stores, roughly split 60/40 between company-owned and franchised stores. More than 100 of these are outside South Africa, with many more planned. “Our capital focus is now on new stores and refurbishment, which will drive sales and, in time, profitability,” said Brasher in a June 2013 interview with South Africa’s The Financial Mail. Critics of his vigorous price-cutting policy, aimed at winning back market share, say that this was exactly the strategy that had backfired at Tesco,

f e b r ua r y 2 014

whilst improvements to the cost base saw its trading profits leap by 15.2% in response to better margins. But perhaps the biggest endorsement of what Brasher has accomplished so far has come from the man who built up the Pick n Pay empire from four small stores bought in 1967. Raymond Ackerman said: “I am terribly encouraged by what Richard Brasher has produced with his team in the past six months. There is such a lot that we have to do to catch up and be the leading retailer, but I feel strongly that we can.” For Brasher, it has been a case of coming out of the blocks smoothly. Investors hope that he can stay the course. ● W.D.

MIKE ABRAhAMS/PICK n PAy

growing revenue, profits and dividends. The company has managed a measured expansion into the continent and added additional stores in Nigeria and Ghana following on from positive results from trial stores in those countries. The company has also taken a leaf out of the experience of international retailers by making a substantial investment in its online offering through its website. While still small in the context of its current operations, the company sees this developing into a major source of revenue.

business top 500 african companies

manufacturing

top 10 manufacturing companies rank in top 500

Future may be brighter for African companies All the factors are in place for a manufacturing revolution in Africa, but for the moment it is global companies that are profiting the most

ptimists point to global factors that should contribute to the re-emergence of Africa’s manufacturing sector: rising Asian wages, the growth of consumer classes on the continent and the ever-increasing global demand for manufactured goods. While there is certainly an uptick in textiles and automobile manufacturing across Africa, the winners in that particular story are foreign companies seeking competitive advantage in the form of cheap labour. But the success of Renault Maroc’s (#201) facility and the Chinese shoe company Huajian’s factory outside Addis Ababa may signal that Africa is ripe for a manufacturing revolution. The total turnover for manufacturers in our Top 500 – including the paper, steelmaking, electrical equipment, textiles, cars and plasticssectors–was$85.4bnbased on year-end 2012 results, up 5% on

$21bn Maximum amount Sasol will invest in its Southwest Louisiana GTL plant in the US

CoMpanY

CoUntrY

tUrnover in $bn

Sasol

South Africa

Steinhoff international Holdings

South Africa

9.5

Sappi

South Africa

6.3

arcelorMittal South africa

South Africa

3.8

ezz Steel Co.

Egypt

3.2

allied electronics Corp.

South Africa

elsewedy Cables

Egypt

2.3 2.1

nampak

South Africa

al ezz Dekheila Steel Co.

Egypt

1.9

aeCi

South Africa

1.8

2011.Thisrepresented11.6%of the Top 500’s total turnover. South Africa remains the strongest manufacturer today, and the governmentistryingtohelp strong local companies to develop. Employing 36,000 people and representing 7.3% of gross domestic product, the car sector is at the heart of the South African manufacturingindustry.TheAutomotive Production and Development Programme requires that a larger proportion of automobile components are manufactured in South Africa. A similar local content act in Nigeria has helped companies such as Nigerdock take on large manufacturing jobs on behalf of oil majors. tough year for steel

Meanwhile, steel manufacturers have been not been so lucky. While Morocco’s Société Nationale de Sidérurgie (#256) has managed to regain stability after

a difficult period, Maghreb Steel (#372) has not been so lucky. In August it fired 350 workers and threatened to close its Casablanca plant if the government did not impose anti-dumping measures on its Mediterranean competitors. These were duly accorded in November. In Algeria, ArcelorMittal’s El Hadjar steel facility is set to be renationalised after troubles finding a solution to industrial disputes. And 2013 was also a tough year for ArcelorMittal South Africa (AMSA) (#41). To resolve an ongoing dispute with Kumba Iron Ore (#27) over the rights to the Sishen mine, AMSA concluded a new agreement with Kumba in November 2013 that will see AMSA pay costs plus 20% for its iron ore. The previous agreement was for costs plus 3%. AMSA also declared force majeure at its Vanderbijlpark plant in February 2013 after a fire. In December, chief executive Nonkululeko Nyembezi-Heita resigned. ● Nicholas Norbrook

methodology Of 8,473 cOmpanies in our database, 8,170 received a detailed questionnaire. after cross-checks and verification, we established a ranking of africa’s top 1,035 companies. The first 500 are published. To allow

for comparison, we apply the same rules to all our data: 1) all financial data must have a clearly defined source, generally communicated to us by the companies themselves, and must refer to the year 2012 (in some cases 2012/2013); 2) if presented in the local

currency, we convert the data into United states dollar amounts according to the rate prevailing on 31 December 2012; 3) We include all companies that fall under legal jurisdiction of at least one of the 54 countries in africa, which is why

a holding company and a subsidiary can both feature on the list; and 4) Where we cannot obtain up-to-date figures, we use those of the previous year (marked with an asterisk and italics). after two years of silence, a company is struck off the rankings. ●

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top 500 african companies business

We are pleased with the strides we’ve made in operational stability and containing costs” Nonkululeko Nyembezi-Heita, outgoing CEO of ArcelorMittal South Africa (#41)

DIFF.

RANK ’12

RANK ’13

RANKINGS 1-50

COMPANY

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

- Sonatrach

Oil and gas

Algeria

69 473 480

-3.56%

7 236 560

- Sonangol

Oil and gas

Angola

33 691 592

1.23%

6 675 591

- Sasol

Chemicals and plastics South Africa

19 964 128

14.12%

2 857 960

- MTN Group

Telecoms

15 918 896

6.34%

2 835 692

South Africa

- Bidvest Group

Diversified

South Africa

15 732 933

8.11%

558 169

- Eskom

Utilities

South Africa

15 183 346

7.72%

610 661

+8 Sanlam

Financial services

South Africa

10 436 496

56.55%

758 054

-1 ShopRite Holdings

Retail

South Africa

9 747 318

9.77%

386 485

- Imperial Holdings +17 Steinhoff International Holdings

Diversified

South Africa

9 523 391

19.91%

399 174

Wood and paper

South Africa

9 476 734

79.27%

711 986

-3 Vodacom Group

Telecoms

South Africa

8 237 621

0.21%

1 558 052

+4 Massmart Holdings

Retail

South Africa

7 229 777

11.17%

143 257

- Pick n Pay Stores

Retail

South Africa

7 028 964

3.43%

64 872

-2 Vodacom South Africa

Telecoms

South Africa

6 905 077

-1.25%

+3 Barloworld

Diversified

South Africa

6 898 832

12.74%

192 636 849 000

+4 AngloGold Ashanti

Mining

South Africa

6 632 000

12.85%

+6 Samir

Oil and gas

Morocco

6 516 407

12.8%

41 520

-7 Sappi

Wood and paper

South Africa

6 347 000

-12.89%

35 000

+10 Naspers

-9 De Beers Consolidated Mines

Mining

South Africa

6 074 000

-17.67%

Media

South Africa

5 920 337

22.07%

795 049

+3 Transnet

Transport

-1 Société Nationale d'Investissement*

Diversified

South Africa

5 913 857

4.9%

511 339

Morocco

5 853 456

499 402 1 246 627

-9 Office Chérifien des Phosphates

Mining

Morocco

5 770 059

-14.93%

-2 SABMiller South Africa

Food and drink

South Africa

5 540 000

-4.73%

- Suez Canal Authority*

Transport

Egypt

5 540 000

+2 Gold Fields

Mining

South Africa

5 357 193

4.16%

792 905

-8 Kumba Iron Ore

Mining

South Africa

5 354 448

-10.21%

1 896 902

-2 Orascom Construction Industries

-988 116

+2 SPAR Group -14 Anglo American Platinum Corp.

- Datatec

Construction

Egypt

5 300 686

-1.94%

Media

South Africa

5 246 667

4.24%

85 084

Retail

South Africa

5 132 263

8.65%

124 760 -791 750

Mining

South Africa

5 083 697

-19.03%

-1 MTN South Africa

Telecoms

South Africa

4 871 857

2.77%

+2 Aveng

Diversified

South Africa

4 817 189

14.27%

61 620

+5 Oando

- MTN Nigeria +5 Murray & Roberts Holdings

Telecoms

Nigeria

4 559 281

6.43%

Oil and gas

Nigeria

4 301 633

13.96%

68 925 -69 749

-1 Telkom

+7 Naftal

Oil and gas

-1 Middle East Oil Refineries*

Oil and gas

- Total South Africa

Construction

South Africa

4 171 523

11.23%

Oil and gas

South Africa

3 930 475

72 695

Telecoms

South Africa

3 902 081

-3.95%

-1 354 812

Algeria

3 848 022

5.41%

Egypt

3 825 000

201 500 -59 853

-3 ArcelorMittal South Africa

Steel and metals

South Africa

3 804 526

-1.52%

+3 Transnet Freight Rail

Transport

South Africa

3 746 323

10.28%

+4 Liberty Group

Financial services

South Africa

3 619 430

7.94%

494 608

+4 Old Mutual Life Assurance Co.

Financial services

South Africa

3 608 473

11.43%

1 501 852

-2 Global Telecom Holding (ex Orascom Telecom)*

Telecoms

Egypt

3 570 633

658 487

-4 Groupe Maroc Telecom

Telecoms

Morocco

3 540 091

-1.15%

863 289

+3 Woolworths Holdings

Retail

South Africa

3 394 748

8.04%

242 591

-12 Impala Platinum Holdings

Mining

South Africa

3 251 007

-20.11%

506 508

-16 Grindrod

Transport

South Africa

3 212 035

-27.12%

108 608

+2 Ezz Steel Co.

Steel and metals

Egypt

3 152 829

2.55%

39 873

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

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71% increase in the share price of Dangote Cement (#78) on the Nigerian Stock Exchange in 2013

RANK ’12

DIFF.

RANKINGS 51-100

+4 Cevital

Agribusiness

Algeria

3 152 498

10.12%

294 195

-8 Edgars Consolidated Stores

Retail

South Africa

3 148 033

-8.08%

-592 399

RANK ’13

COMPANY

+24 JD Group +2 Network Healthcare Holdings

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Retail

South Africa

2 978 961

54.09%

104 978

Healthcare

South Africa

2 966 001

-1 144 386

-2 Office National de l'Electricité*

Utilities

Morocco

2 943 924

-7 South African Airways*

Transport

South Africa

2 930 608

-103 537

-3 Allied Electronics Corp.

Electrical equipment

South Africa

2 918 284

0.84%

-109 455

Healthcare

South Africa

2 893 895

7.17%

-87 540

+5 Masscash

Retail

South Africa

2 697 465

11.92%

+2 Tiger Brands

Food and drink

South Africa

2 682 867

6.92%

323 746 771 478

- Mediclinic Corp.

-4 Maroc Telecom

Telecoms

Morocco

2 640 940

-5.12%

-1 Sonelgaz

Utilities

Algeria

2 402 137

-4.5%

Oil and gas

South Africa

2 318 287

30.68%

69 921

+22 PetroSA

-1 Elsewedy Cables

Electrical equipment

Egypt

2 310 940

-7.78%

23 239

+3 Santam

Financial services

South Africa

2 284 059

5.03%

126 774

+1 Blue Label Telecoms

Telecoms

South Africa

2 236 720

0.81%

58 438

-7 KenolKobil

Oil and gas

Kenya

2 229 468

-13.37%

-72 775

+2 MMI Holdings

275 345

- Pioneer Foods Group +9 African Rainbow Minerals

Financial services

South Africa

2 202 527

6.48%

Food and drink

South Africa

2 192 602

5.93%

70 601

Mining

South Africa

2 137 490

16.86%

420 735

+1 Afriquia SMDC

Oil and gas

Morocco

2 133 912

+3 Nampak

Wood and paper

South Africa

2 078 239

6.97%

140 418

-7 The Arab Contractors - Osman Ahmed Osman & Co.

Construction

Egypt

1 996 551

-12.95%

80 416

-3 Kansanshi Mining

Mining

Zambia

1 979 900

-3.33%

929 400

76 107 77

78 106

+20 Flour Mills of Nigeria

Food and drink

Nigeria

1 929 405

22.67%

49 598

+31 Foschini

Retail

South Africa

1 918 699

34.32%

226 992

+10 Clicks Group

Retail

South Africa

1 913 795

10.49%

81 105

+28 Dangote Cement

Construction

Nigeria

1 907 121

32.74%

970 853 -41 537

-3 Société Nationale de Raffinage

Oil and gas

Cameroon

1 891 675

-2.28%

-6 Al Ezz Dekheila Steel Co.

Steel and metals

Egypt

1 857 853

-6.41%

Transport

Ethiopia

1 836 830

29.4%

39 880

81 108

+27 Ethiopian Airlines

-1 Société Ivoirienne de Raffinage*

Oil and gas

Côte d’Ivoire

1 819 328

-30 048

-1 Wilson Bayly Holmes – Ovcon*

Construction

South Africa

1 813 638

90 085

+13 Masswarehouse

Retail

South Africa

1 810 964

15.89%

+16 Aspen Pharmacare Holdings

Healthcare

South Africa

1 797 438

18.18%

405 301

85 101 86

87 100

-3 Société Nationale des Hydrocarbures +13 Harmony Gold Mining Co.

Oil and gas

Cameroon

1 796 862

-0.72%

55 989

Mining

South Africa

1 787 212

16.93%

311 634

-4 Optimum Telecom Algeria (ex Orascom)*

Telecoms

Algeria

1 782 960

+2 AECI

Chemicals and plastics

South Africa

1 757 403

7.26%

74 227

+2 Massdiscounters

Retail

South Africa

1 744 408

6.53%

+7 Discovery Health

Financial services

South Africa

1 730 894

12.87%

261 796

92 103 93

117

+11 Royal Air Maroc +3 Total Gabon +23 Entreprise Tunisienne d’Activités Pétrolières

95 104

+9 Tongaat Hulett Group

Transport

Morocco

1 727 381

14.72%

-5 138 190

Oil and gas

Gabon

1 708 115

8.75%

329 656

Oil and gas

Tunisia

1 701 738

32.42%

349 697

Food and drink

South Africa

1 693 427

14.13%

137 849

96 102

+6 Distell Group

Food and drink

South Africa

1 670 222

10.31%

114 387

-9 Mobinil

Telecoms

Egypt

1 646 529

-2.11%

-36 787

-9 Société Marocaine des Tabacs (ex Imperial)

Agribusiness

Morocco

1 626 335

-2.72%

+6 Mr Price Group

Retail

South Africa

1 616 490

9.11%

182 032

Mining

South Africa

1 614 000

-18.98%

-550 000

99 105 100

-27 Lonmin

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

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Sonatel will not sell any of its infrastructure, and nobody will be laid off”

101 116 102

103

DIFF.

RANK ’12

RANK ’13

RANKINGS 101-150

COMPANY

Alioune Ndiaye, director general Sonatel, Senegal (#117)

SECTOR

+15 Assore -8 Société Tunisienne de l'Electricité et du Gaz* -10 Telecom Egypt

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Mining

South Africa

1 603 852

23.8%

Utilities

Tunisia

1 600 140

476 822 -11 230

Telecoms

Egypt

1 597 442

-2.28%

416 088

104 112

+8 Omnia Holdings

Chemicals and plastics South Africa

1 595 636

18.7%

103 682

105

-15 Remgro

Diversified

1 594 340

-4.07%

1 103 384

106 110

+4 Transnet Rail Engineering

South Africa

Transport

South Africa

1 539 083

11.23%

Telecoms

Nigeria

1 483 260

20.65%

-112 913

107 121

+14 Airtel Nigeria

108 132

+24 Société Nationale Industrielle et Minière*

Mining

Mauritania

1 448 427

832 610

109

-10 Exxaro Resources

Mining

South Africa

1 440 821

-5.93%

1 136 610

110 119

+9 Safaricom

Telecoms

Kenya

1 439 253

16.26%

203 111

111 109

-2 Nigerian Breweries*

Food and drink

Nigeria

1 401 449

231 578

112 140

+28 Total Nigeria

Oil and gas

Nigeria

1 392 021

31.4%

29 847

113 151

+38 Super Group

Automobile

South Africa

1 380 611

43.47%

96 155 127 552

114 113 115 126 116 114 117 122 118 137 119 123 120 130 121 115 122 111

-1 Reunert +11 Vivo Energy Maroc (ex Shell Maroc) -2 Alexandria Mineral Oils Co.* +5 Sonatel +19 Aurecon Heritage Companies +4 Ghabbour Auto +10 Illovo Sugar -6 Shell Gabon* -11 Kap International Holdings

Electrical equipment

South Africa

1 374 040

2.42%

Oil and gas

Morocco

1 336 927

12.54%

Oil and gas

Egypt

1 332 188

173 402 344 353

Telecoms

Senegal

1 331 975

8.62%

Construction

South Africa

1 325 475

23.88%

Automobile

Egypt

1 320 123

7.76%

43 939 131 381

Agribusiness

South Africa

1 311 207

16.38%

Oil and gas

Gabon

1 304 680

Diversified

South Africa

1 298 141

-4.07%

70 221

123 125

+2 Life Healthcare Group

Healthcare

South Africa

1 288 597

6.93%

205 360

124 143

+19 Julius Berger Nigeria

Construction

Nigeria

1 288 002

24.84%

52 784

125 136

+11 Total Kenya

Oil and gas

Kenya

1 244 277

16.22%

-2 341

126 120

-6 Ynna Holding*

Diversified

Morocco

1 234 684

127 124

-3 Allied Technologies

Electrical equipment

South Africa

1 230 159

0.44%

128 138

+10 Sun International

Tourism

South Africa

1 209 658

13.85%

120 294

129 141

+12 Rainbow Chicken

Food and drink

South Africa

1 191 020

12.48%

752 752

130 135

+5 Marjane Holding

131 131

- Tsogo Sun Holdings

Retail

Morocco

1 183 239

9.23%

Tourism

South Africa

1 167 596

5.27%

206 656 29 075

132 128

-4 Mutual & Federal Insurance

Financial services

South Africa

1 163 040

2.26%

133 127

-6 Endiama*

Mining

Angola

1 160 000

Retail

South Africa

1 150 984

19.26%

262 150

134 149

+15 Truworths International

135 118

-17 Kenya Airways

136 134 137 146 138 153

-2 Douja Promotion +9 Stefanutti Stocks Holdings +15 Anglovaal Industries

Transport

Kenya

1 144 799

-8.3%

-91 065

Construction

Morocco

1 117 091

3.06%

232 036

Construction

South Africa

1 108 114

11.82%

-19 094

Food and drink

South Africa

1 086 100

15.05%

134 232 118 363

139 145

+6 Groupe SIFCA

Agribusiness

Côte d’Ivoire

1 078 015

8.11%

140 148

+8 Total Maroc

Oil and gas

Morocco

1 070 989

8.53%

141 150

+9 Eqstra Holdings

Automobile

South Africa

1 070 866

10.99%

45 950

142 156

+14 CMH Group

Automobile

South Africa

1 057 059

16.9%

24 027

143 129

-14 Group Five Holdings

Construction

South Africa

1 034 858

-8.48%

-27 112

144

147

145 172

+3 Palabora Mining Co. +27 Adcorp Holdings

Mining

South Africa

1 026 919

3.81%

-11 429

Services

South Africa

1 015 236

28.69%

20 351

146 144

-2 Transnet National Ports Authority

Transport

South Africa

981 205

-3.25%

147 142

-5 Astral Foods

Food and drink

South Africa

961 420

-9.04%

39 175 17 959

148 152 149 159 150 158

+4 Conoil* +10 Massbuild +8 Cosider

Oil and gas

Nigeria

959 248

Construction

South Africa

958 819

7.37%

Construction

Algeria

944 634

5.19%

199 243

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

the africa report

•

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business top 500 african companies

151 139 152

153 196 154 155 155

156 162

DIFF.

RANK ’12

RANKINGS 151-200 RANK ’13

242%

COMPANY

-12 Al Ezz Rolling Mills - Volta River Authority +43 Société Nationale Burkinabé d’Hydrocarbures +1 Société Gabonaise de Raffinage* - Powertech +6 AFGRI

SECTOR

Increase in annual turnover for South Africa’s RMI Holdings (#165), the fastest growth in the Top 500

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Steel and metals

Egypt

924 547

-14.5%

Utilities

Ghana

916 703

-47 145

Oil and gas

Burkina Faso

913 515

32.46%

19 116

Oil and gas

Gabon

913 388

-16 482

Electrical equipment

South Africa

900 263

Agribusiness

South Africa

891 308

2.83%

23 093 87 603

157 198

+41 Invicta Holdings

Automobile

South Africa

890 472

29.48%

158 200

+42 Saham Holding

Diversified

Morocco

888 077

29.6%

Diversified

South Africa

886 497

-5.17%

188 897 61 934

159 154

-5 Hosken Consolidated Investments

160 243

+83 Saham Finances

Financial services

Morocco

882 000

56.39%

161 133

-28 Grinaker-LTA

Construction

South Africa

881 294

-18.96%

162 164

+2 Société Nationale de Distribution des Pétroles AGIL

Oil and gas

Tunisia

877 505

2.29%

12 211

163 163 164 160

- Transnet Port Terminals -4 GML

Transport

South Africa

874 696

0.95%

Diversified

Mauritius

873 371

-0.8%

39 710 286 185

165 433 +268 RMI Holdings

Financial services

South Africa

869 983

242.03%

166 174

+8 Poulina Group Holding

Diversified

Tunisia

867 834

10.8%

52 870

167 168

+1 Pretoria Portland Cement Co.

Construction

South Africa

865 506

3.24%

99 676

168 189 169 170 170 236 171 166 172 267

+21 Eastern Co. +1 Clover Holdings +66 Groupe CFAO Algérie -5 Société Africaine de Raffinage*

Egypt

863 877

19.55%

107 805

South Africa

851 116

5.92%

24 709

Diversified

Algeria

849 033

44.92%

Oil and gas

Senegal

846 451

Diversified

Egypt

844 990

69.25%

134 962

173

- Mohammed Enterprises Tanzania

Diversified

Tanzania

836 098

25.25%

68 123

174

- Bytes Technology Group

Media

South Africa

825 211

Telecoms

Algeria

812 926

175 169

+95 Egypt Kuwait Holding Co.

Agribusiness Food and drink

-6 Wataniya Telecom Algérie*

176 187

+11 MTN Ghana

Telecoms

Ghana

808 481

10.8%

177 188

+11 Rand Water

Utilities

South Africa

805 711

11.36%

91 721

178 176

-2 Mondi Packaging South Africa

Wood and paper

South Africa

803 627

4.17%

37 879

179 180

+1 Centrale Laitière

Food and drink

Morocco

798 178

4.65%

56 216 -86 776

180 201 181

182 173 183 197 184 175

+21 Société Tunisienne de l’Air - Aveng Mining -9 Produce Buying Co.* +14 South African Broadcasting Corp. -9 Groupe Chimique Tunisien*

Transport

Tunisia

791 274

15.87%

Mining

South Africa

787 038

Agribusiness

Ghana

786 026

16 698

Media

South Africa

Chemicals and plastics Tunisia

785 366

13.93%

38 823

780 135

26 580

185 181

-4 Oriental Weavers for Carpets

Textiles

Egypt

779 475

2.37%

45 398

186 177

-9 Mpact*

Wood and paper

South Africa

771 432

11 029

187 165

-22 Hulamin

Steel and metals

South Africa

770 778

-9.79%

15 617

188 190

+2 Lyonnaise des Eaux de Casablanca

Utilities

Morocco

767 970

32 527

189 179

-10 Tunisiana*

Telecoms

Tunisia

762 958

190 194

+4 Cashbuild

Construction

South Africa

751 332

7.94%

28 924

191 205

+14 INWI

Telecoms

Morocco

747 180

12.87%

192 231

+39 Nestlé Nigeria

Food and drink

Nigeria

745 760

25.01%

135 067

193 182

-11 Guinness Nigeria

Food and drink

Nigeria

744 191

-1.18%

90 831

194

-27 Talaat Moustafa Group

Construction

Egypt

738 278

-12.34%

81 250

195 207

+12 Total Sénégal

Oil and gas

Senegal

737 250

13.15%

-9 660

196 183

-13 Air Algérie*

Transport

Algeria

734 160

197 171

-26 Suez Cement Co.

Construction

Egypt

732 024

-8.08%

83 505

167

198 192 199 186 200 193

-6 Mondi Group South Africa -13 Egyptian Aluminium Products Co. -7 Compagnie Sucrière Marocaine de Raffinage

Wood and paper

South Africa

727 303

2.83%

37 113

Steel and metals

Egypt

718 498

-1.89%

24 529

Agribusiness

Morocco

709 667

0.82%

86 768

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

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•

n ° 57

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business top 500 african companies

In Tunisia, our new subsidiary is specialised in life insurance. [In Sub-Saharan Africa], we will be totally universal”

201

202 216

DIFF.

RANK ’12

RANKINGS 201-250 RANK ’13

COMPANY

- Renault Maroc +14 Jorf Lasfar Energy Co.

Ramsès Arroub, CEO of Wafa Assurance, Morocco (#207)

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Automobile

Morocco

702 741

Utilities

Morocco

697 753

10.81%

NA 139 938

203 226

+23 Econet Wireless

Telecoms

Zimbabwe

694 844

13.7%

204 228

+24 Pinnacle Technology Holdings

Electrical equipment

South Africa

688 610

13.04%

33 267

205 255

+50 Business Connexion Group

Media

South Africa

686 849

29.63%

23 107

206 209 207 224

+3 Dangote Sugar Refinery +17 Wafa Assurance

Agribusiness

Nigeria

682 887

5.28%

68 989

Financial services

Morocco

679 459

10.8%

86 934

208 217

+9 Aveng Trident Steel

Steel and metals

South Africa

676 640

7.81%

209 203

-6 Namdeb Diamond Corp.*

Mining

Namibia

674 052

99 616

210 161

-49 South African Post Office

Services

South Africa

671 131

-21 038

211 220

+9 Bell Equipment

Automobile

South Africa

668 062

7.27%

28 621

Oil and gas

Morocco

664 885

17.64%

19 869 37 534

212 242

+30 Salam Gaz

213 223

+10 Raubex

Construction

South Africa

663 977

7.42%

214 195

-19 Médi Télécom

Telecoms

Morocco

659 179

-4.79%

654 844

1.63%

33 343

215 212 216 271 217 208 218 244 219 214

-3 African Oxygen +55 Compagnie Ivoirienne d’Electricité -9 Optimum Coal Holdings* +26 SA des Brasseries du Cameroun -5 African Reinsurance Corp.

Chemicals and plastics South Africa Utilities

Côte d’Ivoire

652 446

32.99%

16 872

Mining

South Africa

649 643

76 650

Food and drink

Cameroon

648 616

15.17%

73 096

Financial services

Nigeria

647 980

2.61%

92 646 -19 923

220 178

-42 Basil Read Holdings

Construction

South Africa

647 240

-15.42%

221 222

+1 Société Marocaine de Constructions Automobiles

Automobile

Morocco

647 172

4.69%

Food and drink

Kenya

642 947

23.78%

129 535

222 261

+39 East African Breweries Group

223 249

+26 Mvelaserve

224 329 +105 Société Nigérienne de Produits Pétroliers

Diversified

South Africa

637 178

17.88%

14 651

Oil and gas

Niger

635 357

64.6%

12 447

225 246

+21 Delta Corp.

Food and drink

Zimbabwe

631 276

13.79%

102 472

226 184

-42 Compagnie Minière de l’Ogooué

Mining

Gabon

631 140

-13.85%

91 254

227 215

-12 Cargill West Africa*

Agribusiness

Côte d’Ivoire

629 701

2 328

228 241

+13 Johannesburg Water Co.

Utilities

South Africa

629 294

10.94%

68 334

229 282

+53 Seplat Petroleum Development Co.

Oil and gas

Nigeria

629 000

38.98%

230 219

-11 Innscor Africa

Tourism

Zimbabwe

627 077

48 515 -91 075

Construction

South Africa

623 268

9.37%

232 259

231 239

+27 Maurel & Prom Gabon

Oil and gas

Gabon

622 439

18.57%

233 257

+24 Metair Investments

Automobile

South Africa

621 308

17.8%

58 042 111 468

234

235 218 236 232 237 229 238 292 239 230

+8 Growthpoint Properties

- Polyserve Group -17 Label’Vie -4 Lewis Group -8 Petroleos de Moçambique* +54 Compagnie Marocaine des Hydrocarbures -9 Social Security and National Insurance Trust*

Chemicals and plastics Egypt

621 036

Retail

Morocco

612 795

-2.31%

14 080

Retail

South Africa

611 203

2.45%

106 910 1 827

Oil and gas

Mozambique

608 951

Oil and gas

Morocco

607 027

39.1%

Financial services

Ghana

605 371

313 033

Morocco

240 265

+25 RMA Watanya

Financial services

241 273

+32 Abu Qir Fertilizers & Chemical Industries

Chemicals and plastics Egypt

242 240

-2 Air Mauritius

NA 224 199

Transport

Mauritius

599 125

5.43%

-39 127

Morocco

598 132

-7.49%

150 119

Morocco

596 272

13.55%

Sudan

590 395

-0.67%

-45 774 13 624

-33 Lafarge Ciments

244

+14 Libya Oil Maroc

Oil and gas

-12 Sudanese Telecom Co.

Telecoms

258

18.6% 22.77%

Construction

243 210 245 233

603 093 599 126

246 235

-11 Total Petroleum Ghana*

Oil and gas

Ghana

586 712

247 234

-13 Holding d’Aménagement Al Omrane

Construction

Morocco

582 309

-1.11%

248 191

-57 Forte Oil

Oil and gas

Nigeria

581 389

-18.4%

6 438

249 237

-12 Pharmacie Centrale de Tunisie*

Healthcare

Tunisia

581 040

8 956

250 302

+52 Orange Côte d’Ivoire

Telecoms

Côte d’Ivoire

580 356

36.47%

64 507

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

the africa report

•

n ° 57

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f e b r ua r y 2 014

High speed PORT SYSTEM

LE HAVRE  ROUEN  PARIS

Hervé CORNEDE Commercial and Marketing Director

Boost your import-export trade with HAROPA, the TOP French port system for foreign trade « THE high-performance logistics solution in Europe with: 3,000 liner services with best transit times 1,000 companies as our partners 550 ports of call all over the world »

www.haropaports.com

business top 500 african companies

DIFF.

RANK ’12

RANKINGS 251-300 RANK ’13

37%

COMPANY

Increase in earnings before interest, taxes, depreciation and amortisation at the Ghana Oil Company (#291) between 2012 and 2013

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

251 440 +189 Eterna Oil & Gas

Oil and gas

Nigeria

572 783

129.02%

6 047

252 254

Media

South Africa

567 787

6.51%

52 091

+2 CTP Holdings

253 323

+70 Lafarge Cement West African Portland Cement Co.

Construction

Nigeria

562 096

47.67%

94 010

254 268

+14 Tanzania Breweries

Food and drink

Tanzania

561 971

13.17%

111 591 64 806

255 245

-10 CDG Développement*

Services

Morocco

557 472

256 211

-45 Société Nationale de Sidérurgie

Steel and metals

Morocco

556 956

-13.7%

-9 229

Diversified

Mauritius

555 162

4.98%

25 297

257 256 258 270 259

-1 Ireland Blyth +12 Kenya Power and Lighting - Puma Energy Zambia

Utilities

Kenya

554 870

12.88%

50 398

Oil and gas

Zambia

554 724

16 983

260 303

+43 Sania Cie

Agribusiness

Côte d’Ivoire

552 603

30.02%

25 145

261 225

-36 Catoca Sociedade Mineira

Mining

Angola

550 386

-9.96%

131 731

262 285

+23 Oceana Group

263 262

-1 RMB Holdings

Agribusiness

South Africa

547 622

21.92%

54 696

Financial services

South Africa

546 920

5.58%

529 012 83 139

264 247

-17 Adcock Ingram Holdings

Healthcare

South Africa

541 884

-0.93%

265 276

+11 Golden Star Resources

Mining

Ghana

541 050

14.87%

266 277

+11 Distribution & Warehousing Network

Retail

South Africa

540 599

16.06%

18 761 208 895

267 238

-29 Trencor

Transport

South Africa

536 434

-6.05%

268 252

-16 Sonatel Mobiles*

Telecoms

Senegal

534 856

269 253

-16 Metorex*

Mining

South Africa

533 394

69 458

270 260

-10 Iliad Africa

271 402 +131 Total Côte d’Ivoire

Construction

South Africa

529 375

1.91%

3 964

Oil and gas

Côte d’Ivoire

514 582

78%

12 962

272 199

-73 Evraz Highveld Steel & Vanadium Corp.

Steel and metals

South Africa

512 988

-25.24%

-11 110

273 371

+98 Choppies Enterprises

Retail

Botswana

510 372

59.66%

19 420

274 264

-10 Société Nationale d’Electricité*

Utilities

Senegal

509 928

275 293

+18 MRS Oil

Oil and gas

Nigeria

509 458

17.9%

1 335

276 248

-28 Pétrole du Maghreb

Oil and gas

Morocco

495 623

-8.43%

277 298

+21 Société de Fabrication des Boissons de Tunisie

Food and drink

Tunisia

492 012

14.62%

70 191

278 301

+23 Groupe Loukil

279 283

+4 Lesieur Cristal

280 288

+8 Comair

Diversified

Tunisia

491 944

15.67%

27 080

Food and drink

Morocco

491 834

8.7%

12 572 905

Transport

South Africa

490 477

11.31%

281 315

+34 MTN Côte d’Ivoire

Telecoms

Côte d’Ivoire

485 890

22.88%

282 309

+27 OK Zimbabwe

Retail

Zimbabwe

479 636

16.27%

12 382

283 266

-17 Alliances Développement Immobilier

284 275

-9 Entreprise Nationale de Travaux aux Puits*

285 317 286 291 287 185

+32 Holding Marocaine Commerciale et Financière +5 Raya Holding for Technology and Telecom. -102 Times Media Group (ex Avusa)

288 279 289 289

-9 Total Tunisie* - PZ Cussons Nigeria

Construction

Morocco

474 802

-5.82%

129 361

Oil and gas

Algeria

473 205

42 739

Diversified Electrical equipment Media

Morocco Egypt South Africa

473 095 472 556 465 271

20.73% 8.11% -36.47%

NA 8 059 19 912

Oil and gas

Tunisia

463 395

8 085

Chemicals and plastics Nigeria

455 882

3.75%

34 001

290 331

+41 Juhayna Food Industries

Food and drink

Egypt

454 625

22.66%

51 805

291 311

+20 Ghana Oil Co.

Oil and gas

Ghana

450 448

11.07%

4 925

292 451 +159 Al Ezz Flat Steel

Steel and metals

Egypt

449 853

111.91%

293 284

Food and drink

Kenya

449 639

125 224

294

305

295 286 296 290

-9 East African Breweries Kenya* +11 MTN Cameroun -9 Moolmans* -6 Northam Platinum

Telecoms

Cameroon

449 130

7.02%

Mining

South Africa

449 030

NA 36 585

Mining

South Africa

448 030

2.15%

297 287

-10 Leoni Wiring Systems Tunisie*

Automobile

Tunisia

445 599

4 216

298 308

+10 Office National des Chemins de Fer du Maroc

Transport

Morocco

445 343

7.3%

11 267

299 320

+21 UAC of Nigeria

Diversified

Nigeria

444 951

14.9%

45 388

300 274

-26 Zurich Insurance Co. South Africa

Financial services

South Africa

443 773

-7.12%

-2 549

2012 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2011 RESULTS; NA: NOT AVAILABLE

the africa report

•

n ° 57

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f e b r ua r y 2 014

business top 500 african companies

Weak global economic growth, particularly in the West, could negatively impact infrastructure projects”

DIFF.

RANK ’12

RANKINGS 301-350 RANK ’13

COMPANY

John Simba, chairman of Bamburi Cement, Kenya (#302)

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

301 439 +138 Biopharm

Healthcare

Algeria

441 393

76.4%

32 752

302 307

Construction

Kenya

434 146

4.57%

124 045

303 295

+5 Bamburi Cement -8 AES African Power Co.*

304 391

+87 EOH Holdings

305 280

-25 Ciments du Maroc

306 299 307 300

-7 Afriquia Gaz

Cameroon

429 884

156

South Africa

429 208

43.87%

26 284

Construction

Morocco

428 523

-7.24%

78 977

Oil and gas

Morocco

428 079

0.04%

47 614 67 007

Oil and gas

Côte d’Ivoire

427 828

308 346

+38 Société Magasin Général

Retail

Tunisia

427 500

24.54%

-1 989

309 330

+21 Ceca Gadis

Retail

Gabon

426 120

14.56%

24 723 273 686

310

311 328 312

-7 Société Nationale d’Opérations Pétrolières*

Utilities Telecoms

- Société des Mines de Tongon* +17 Total Burkina - Aveng Manufacturing

Mining

Côte d’Ivoire

425 060

Oil and gas

Burkina Faso

424 669

13.15%

Construction

South Africa

422 149

NA 40 537

313 335

+22 Groupe Managem

Mining

Morocco

417 662

17.19%

314 324

+10 Axa Assurance Maroc

Financial services

Morocco

412 977

8.61%

315 294

-21 Mustek

Media

South Africa

412 670

-4.18%

10 095

316 319

+3 Hudaco Industries

41 309

317

- Unimer

318 333

+15 Seven-Up Bottling Co.

319 356

+37 Orange Cameroun

320 313

-7 Dangote Flour Mills*

Automobile

South Africa

411 471

5.28%

Food and drink

Morocco

409 657

862

Food and drink

Nigeria

409 534

12.33%

18 253

Telecoms

Cameroon

404 406

22.3%

Agribusiness

Nigeria

403 653

4 127

321 322

+1 Orange Mali

Telecoms

Mali

402 000

4.28%

322 296

-26 Engen DRC

Oil and gas

Dem. Rep. Congo

401 051

-6.69%

10 163

323 390

+67 Vivo Energy Mauritius (ex Shell Mauritius)

Oil and gas

Mauritius

399 262

-0.93%

5 735

324 357

+33 Bidvest Namibia

Diversified

Namibia

395 284

20.14%

33 360

325 343

+18 Guelb Moghrein Copper-Gold Mine

Mining

Mauritania

394 400

13.99%

117 700

326 310

-16 Holcim

Construction

Morocco

394 102

-2.88%

50 082

327 278

-49 Bulyanhulu Gold Mine

Mining

Tanzania

393 347

-15.42%

328 351

+23 Airtel Congo DRC

Telecoms

Dem. Rep. Congo

392 224

16.74%

34 352

329 366

+37 Food and Allied Group of Companies

330 336 331

332 347 333

+6 Meikles Africa - MTN Uganda +15 Redefine Properties - Tradex

334 321

-13 Compagnie des Phosphates de Gafsa*

335 393

+58 Groupe Eurofind Afrique

336

337 337 338 341 339

- Société Burkinabé des Fibres Textiles - CNIA SAADA Assurances +3 Country Bird Holdings - Somague Angola

Food and drink

Mauritius

391 368

7.23%

Diversified

Zimbabwe

391 328

10.51%

6 535

Telecoms

Uganda

388 335

Construction

South Africa

387 532

14.53%

-90 350

Oil and gas

Cameroon

386 754

13 687

Mining

Tunisia

386 250

124 050

Diversified

Côte d’Ivoire

383 114

29.19%

Agribusiness

Burkina Faso

382 911

10 420 12 052

Financial services

Morocco

382 770

8.48%

Agribusiness

South Africa

381 333

9.53%

6 849

Construction

Angola

378 512

15 392

340 325

-15 Mobil Oil Nigeria*

Oil and gas

Nigeria

378 189

22 838

341 413

+72 Nsia Participations SA

Diversified

Côte d’Ivoire

376 286

38.1%

15 463 NA

342 360

+18 Groupe CFAO Congo

Diversified

Rep. Of Congo

375 685

14.77%

343 368

+25 Coopérative Copag Taroudant

Food and drink

Morocco

372 158

16.17%

Diversified

Mauritius

371 991

-1.5%

344 326

-18 Ciel Group

345

- Alf Sahel

Food and drink

Morocco

364 672

346

- North Africa Bottling Co.

Food and drink

Morocco

359 446

Construction

Morocco

347 378 348 352

+31 Compagnie Générale Immobilière +4 Unilever Nigeria

Chemicals and plastics Nigeria

355 921

14.89%

37 457

354 950

6.51%

35 769

349 316

-33 Sidi Kerir Petrochemicals Co.

Oil and gas

Egypt

352 533

-10.44%

138 484

350 339

-11 Nakumatt Holdings*

Retail

Kenya

348 998

3 190

2012 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2011 RESULTS; NA: NOT AVAILABLE

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business top 500 african companies

351 327 352

353 332 354 348 355 373 356 359 357 418 358 349 359

DIFF.

RANK ’12

RANKINGS 351-400 RANK ’13

2,073

COMPANY

-24 Société Africaine de Plantations d’Hévéas - Orascom Telecom Media and Technologies -21 Royal Bafokeng Platinum -6 Société Nationale des Tabacs et des Allumettes* +18 Redal +3 Peermont Global +61 Centrale Automobile Chérifienne -9 Mcel Moçambique* - Royal Swaziland Sugar Corp.

SECTOR

Number of staff employed by the Botswana-based Sefalana Holding Company (#387) in 2013

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Agribusiness

Côte d’Ivoire

347 654

-7.68%

42 353

Telecoms

Egypt

344 914

547 850

Mining

South Africa

337 590

-7.61%

20 065

Agribusiness

Algeria

336 927

170 430

Utilities

Morocco

336 609

5.83%

Tourism

South Africa

336 600

2.69%

Automobile

Morocco

336 567

24.84%

Telecoms

Mozambique

336 339

40 698 48 653

Agribusiness

Swaziland

333 675

360 431

+71 Transnet Pipelines

Oil and gas

South Africa

333 313

29.48%

361 383

+22 Société Marocaine de Carburants ZIZ

Oil and gas

Morocco

331 930

8.95%

362 443

+81 Total Mauritius

Oil and gas

Mauritius

330 758

-2.13%

5 294

363 425

+62 BSI Steel

Steel and metals

South Africa

330 478

26.32%

3 429

364

365 385

- Cairo Poultry +20 PALMCI

Food and drink

Egypt

326 639

13 214

Agribusiness

Côte d’Ivoire

324 894

7.31%

48 560

366 364

-2 International Trading Oil & Commodities Corp.*

Oil and gas

Senegal

323 342

367 365

-2 Société Egyptienne d’Entreprises - Mokhta Ibrahim*

Construction

Egypt

323 017

13 492 109 600

- Société des Mines de Loulo*

369 363

368

-6 Alexandria Portland Cement

370 370 371 372

- Société d’Energie et d’Eau du Gabon* +1 Companhia de Transmissao de Moçambique*

Mining

Mali

321 199

Construction

Egypt

319 962

-1.22%

48 782

Utilities

Gabon

319 936

12 155 14 000

Utilities

Mozambique

319 000

372 387

+15 Maghreb Steel

Steel and metals

Morocco

318 494

5.63%

373 405

+32 Côte d’Ivoire Telecom

Telecoms

Côte d’Ivoire

318 279

13.02%

29 862

374 457

+83 Industrial Promotion Services West Africa

375 480 +105 Copragri S.A. 376 447

+71 Star Oil Mauritanie

377 369

-8 Santova Logistics

Diversified

Côte d’Ivoire

316 493

35.76%

Agribusiness

Morocco

312 748

43.93%

Oil and gas

Mauritania

312 000

28.4%

11 000

Transport

South Africa

311 049

-2.81%

2 957

378 411

+33 North Mara Gold Mine

Mining

Tanzania

310 549

13.78%

379 404

+25 Petromin-Oils du Maroc

Oil and gas

Morocco

309 232

9.47%

NA 17 505

380 379

-1 Astrapak

Wood and paper

South Africa

308 097

-0.37%

381 399

+18 Maghrébail

Financial services

Morocco

305 997

5.18%

6 368

Food and drink

Mozambique

304 585

4.57%

51 217

382

- Cervejas de Moçambique

383 403

+20 Soc. de Promotion Industrielle Automobile au Maroc

Automobile

Morocco

301 878

4.72%

384 406

+22 Namibian Power Corp.

Utilities

Namibia

301 505

7.22%

17 756

385 392

+7 Merafe Resources

Mining

South Africa

299 497

0.48%

5 758

386 318

-68 Maridive and Oil Services

Oil and gas

Egypt

298 083

-23.82%

14 504

387 410

+23 Sefalana Holding Co.

Food and drink

Botswana

297 749

7.84%

15 229

388 416

+28 Zambia Sugar

Agribusiness

Zambia

296 883

9.46%

56 412

389 422

+33 Famous Brands

390 394

+4 Groupe Industriel des Productions Laitières*

Tourism

South Africa

296 469

11.98%

39 005

Food and drink

Algeria

296 260

11 563

391 381

-10 Seardel Investment Corp.

Textiles

South Africa

296 139

-3.81%

4 813

392 488

+96 Village Main Reef

Mining

South Africa

294 797

36.75%

37 109

393 460

+67 Honeywell Flour Mills

Agribusiness

Nigeria

292 083

25.97%

18 170

394 434

+40 Compagnie du Komo

Diversified

Gabon

289 038

14.03%

35 577

Oil and gas

Mauritius

288 581

-3.15%

Telecoms

Mali

287 249

28.28%

395

396 471 397 400 398

- Jan De Nul (Pacific) +75 Société des Télécommunications du Mali +3 Groupe CFAO Cameroun - Engen Botswana

Diversified

Cameroon

286 954

-1.23%

Oil and gas

Botswana

285 070

49.7%

15 235

399 454

+55 Société Ivoirienne de Promotion de Supermarchés

Retail

Côte d’Ivoire

284 643

20.52%

1 545

400 485

+85 Société Centrale de Réassurance

Financial services

Morocco

284 074

31.55%

36 764

2012 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2011 RESULTS; NA: NOT AVAILABLE

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business top 500 african companies

41% drop in production between 2011 and 2012 at the Egyptian Iron and Steel Co. (#448)

DIFF.

RANK ’12

RANKINGS 401- 450 RANK ’13

COMPANY

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

401 414

+13 Brasseries du Maroc

Food and drink

Morocco

283 893

4.19%

402 424

+22 Société Centrale de Boissons Gazeuses

Food and drink

Morocco

283 660

8.37%

39 482 2 463

403 432

+29 SNMVT - Monoprix

Retail

Tunisia

281 756

10.65%

7 737

404 477

+73 Namibia Breweries

Food and drink

Namibia

281 192

28.49%

8 606

405 448

+43 Egyptian International Tourism Co.

Tourism

Egypt

279 492

15.15%

22 139

406 426

+20 Airtel Gabon

Telecoms

Gabon

279 056

6.73%

42 354

Financial services

Mauritius

278 387

-3.93%

6 726

+19 Amendis

Utilities

Morocco

278 151

6.66%

409 479

+70 Esorfranki

Construction

South Africa

274 044

25.94%

10 334 16 354

407 401

-6 BAI Co.

408 427 410 428

+18 Ciel Textile

Textiles

Mauritius

273 989

5.29%

411 386

-25 Univers Acier

Steel and metals

Morocco

271 936

-10.02%

412 415

+3 Yazaki Maroc*

Electrical equipment

Morocco

271 419

413 482 414

415 417 416 449

+69 Cipla Medpro - Al Arafa for Investment in Garments Manufacturing +2 Vivo Energy Senegal (ex Shell Senegal)* +33 Société des Brasseries du Gabon

Healthcare

South Africa

270 659

24.67%

19 837

Textiles

Egypt

269 740

5 288

Oil and gas

Senegal

269 716

Food and drink

Gabon

268 267

10.55%

417 420

+3 Sococim Industries*

Construction

Senegal

267 404

418 361

-57 Delta Holding

Diversified

Morocco

266 618

-17.96%

17 395

419 353

-66 Auto Hall

Automobile

Morocco

265 421

-20.27%

23 788

420 397

-23 AICO Africa

Agribusiness

Zimbabwe

263 922

-10.01%

-2 091

421 475

+54 Compagnie de Distribution de Côte d’Ivoire

Retail

Côte d’Ivoire

263 059

19.17%

-871

422 374

-48 Gijima AST Group

Media

South Africa

261 471

-17.05%

-8 202 6 476

423 437

+14 Misr Life Insurance Co.

Financial services

Egypt

260 861

3.74%

424 340

-84 Buzwagi Gold Mine

Mining

Tanzania

259 954

-25.34%

425 491

+66 Airtel Tanzania

Telecoms

Tanzania

259 688

21.57%

-27 551 169 872

426

- Golden Pyramids Plaza Co.

Tourism

Egypt

259 631

427

- Copperbelt Energy Corp.

Utilities

Zambia

258 162

28.45%

20 771

Tourism

Mauritius

257 087

3.05%

18 449 302 155

428 441

+13 New Mauritius Hotels

429 452

+23 Capital Property Fund

Construction

South Africa

255 601

6.93%

430 463

+33 Cooper Maroc Pharmaceuticals

Healthcare

Morocco

254 634

10.73%

Telecoms

Sudan

254 256

NA 56 426

431

- MTN Sudan

432 430

-2 Mauritius Telecom

Telecoms

Mauritius

253 632

-1.84%

433 435

+2 Société Générale des Travaux du Maroc*

Construction

Morocco

253 185

434 429

-5 Groupe Benamor

Food and drink

Algeria

251 571

-2.81%

NA 5 022

435

- Nu-World Holdings

Transport

South Africa

250 174

26.52%

436

- Groupe CFAO Côte d’Ivoire

Diversified

Côte d’Ivoire

248 870

41.31%

Agribusiness

Côte d’Ivoire

248 400

-19.21%

502

437 382 438

439 459

-55 Outspan Ivoire - Zambeef +20 Botswana Insurance Holdings

Food and drink

Zambia

248 180

32.86%

2 659

Financial services

Botswana

246 973

6.49%

49 962

440 444

+4 Industries Chimiques du Sénégal*

Mining

Senegal

246 899

441 380

-61 Sentula Mining

Mining

South Africa

245 658

-20.39%

-106 034

442 465

+23 Umgeni Water-Amanzi

Utilities

South Africa

245 256

7.52%

68 742

244 769

105 025

443

444 446

- Helwan Fertilizer Co. +2 Société Multinationale de Bitumes*

Chemicals and plastics Egypt Oil and gas

Côte d’Ivoire

243 981

6 330

Construction

Morocco

242 537

13.92%

-21 256

Tunisia

242 328

-11.1%

12 458

Côte d’Ivoire

242 262

47 909

445 492

+47 Société Nationale des Autoroutes du Maroc

446 412

-34 One Tech Holding

Electrical equipment

447 450

+3 Atlantique Télécom Côte d’Ivoire*

Telecoms Steel and metals

Egypt

242 114

-47.48%

-138 176

449

448 281 -

-167 Egyptian Iron & Steel Co. - Ciments de l’Atlas

Construction

Morocco

241 593

33 261

450

- Groupe Ingelec

Electrical equipment

Morocco

240 995

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

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I am Théthé Nzoka Rice Farmer Kingabwa DRC

We have learnt that Africa can help us. GrowinG toGether.

eineken has had a close relationship with Africa for more than one hundred years. in this time, we’ve learnt the importance of partnering for growth. To this end, we are committed to sourcing 60% of our agricultural raw materials from farmers in Africa by 2020. Today, collaborative projects are flourishing in nigeria, Sierra-Leone, egypt, Rwanda, Burundi, ethiopia, South Africa and the Democratic Republic of Congo (DRC). We launched our rice project in the DRC in 2009, together with the Dutch Government and nGO Partner eucord. An extensive programme has been put in place to train smallholder rice farmers and tens of thousands of them have been reaping

the benefits. From 2009 to 2012, Heineken has redirected 26 million euros to the local economy. During this time, both total rice production and yield per farmer increased by 62%. And in kinshasa alone, the average income per farmer increased by 323%. Heineken has also been reaping the benefits. This successful collaboration between community and our company has helped create a sustainable source of raw materials, a shorter supply chain, a reduction in transport and importation costs and a lower carbon footprint. We truly are growing together.

Many people still believe that Africa needs help. We have learnt that Africa can help us.

business top 500 african companies

The increase in volumes sold in the year necessitates further upgrades into the plant and investment into our people”

451

DIFF.

RANK ’12

RANKINGS 451-500 RANK ’13

COMPANY

- Dimagaz

452 478

+26 Upper Egypt Flour Mills

453 362

-91 Metmar

454

455 466 456

457 456 458 358

- Nouvelair Tunisie +11 Société d’Exploitation des Ports - Marsa Maroc - Société Les Grands Travaux Routiers -1 National Foods Holdings -100 Office National des Aéroports

Todd Moyo, chair, National Foods Holdings, Zimbabwe (#457)

SECTOR

COUNTRY

TURNOVER TURNOVER (2012) CHANGE

NET PROFITS

Utilities

Morocco

239 568

26.29%

Food and drink

Egypt

238 672

9.42%

11 632

Steel and metals

South Africa

238 530

-26.56%

-13 082

Transport

Tunisia

238 097

18.8%

380

Transport

Morocco

236 014

4.11%

Construction

Morocco

235 481

40.64%

Food and drink

Zimbabwe

233 998

7 904

Transport

Morocco

233 437

-28.79%

11 717

459 409

-50 Société Nationale d’Assurances

Financial services

Algeria

232 972

-15.97%

31 726

460 493

+33 Coronation Fund Managers

Financial services

South Africa

232 725

9.79%

80 599

461 344

-117 Airtel Zambia

462

463 445 464 461 465 472 466 484 467 474 468

469

470 314 471

472 486 473

474

475 408

- Office National des Télécommunications -18 Kelly Group -3 Société de Limonaderies et Brasseries d’Afrique* +7 Groupe Acima +18 Brimstone Investment Corp. +7 Value Group - Groupe Metidji - Société des Mines de Gounkoto* -156 Press Corporation - Sixth of October Development & Investment Co. +14 Datacentrix Holdings - Airtel Ghana - Indianoil Mauritius -67 Coficab Maroc

Telecoms

Zambia

232 628

-32.69%

25 642

Telecoms

Burkina Faso

232 613

25.67%

38 317

Services

South Africa

232 613

-4.76%

-3 317

Food and drink

Côte d’Ivoire

231 766

36 288

Retail

Morocco

231 202

3.48%

Financial services

South Africa

229 333

6.1%

99 218

Transport

South Africa

229 209

3.79%

11 980

Food and drink

Algeria

228 603

14 961 154 547

Mining

Mali

228 370

Diversified

Malawi

228 105

-43.48%

29 110

Construction

Egypt

227 071

39 817

Telecoms

South Africa

226 154

4.76%

9 110

Telecoms

Ghana

225 809

46.11%

76 088

Oil and gas

Mauritius

225 784

-2.34%

Automobile

Morocco

225 044

-19.24%

476 458

-18 British American Tobacco Kenya

Agribusiness

Kenya

224 756

-3.54%

37 878

477 453

-24 Orascom for Hotels And Development

Tourism

Egypt

223 833

-5.25%

-56 535 40 884

478

- Sechaba Brewery Holding

Food and drink

Botswana

221 358

479

- Groupe CFAO Maroc

Diversified

Morocco

221 020

16.18%

Oil and gas

Algeria

219 701

-2.23%

14 786

480 468 481 476 482

-12 Entreprise Nationale de Géophysique -5 Argent Industrial - Eqdom

Construction

South Africa

218 018

-1.23%

8 976

Financial services

Morocco

217 275

29 294

483 481

-2 Libya Oil Senegal*

Oil and gas

Senegal

217 257

484 483

-1 Vox Telecom*

Telecoms

South Africa

216 673

6 995

485 498

+13 Illovo Malawi

Agribusiness

Malawi

215 587

4.06%

105 956

486

- Pioneers Holding

Financial services

Egypt

214 619

19 211

487

- Global Engines

Automobile

Morocco

211 345

488

- RA de Distribution d’Eau et d’Elect. de Marrakech

Utilities

Morocco

210 515

4.14%

8 193 -173 905

489 495 490 375 491 497

+6 Générale des Carrières et des Mines* -115 DRDGold +6 Cadbury Nigeria*

Mining

Dem. Rep. Congo

208 454

Mining

South Africa

207 857

-34.03%

29 804

Food and drink

Nigeria

207 730

22 533 1 544

492 499

+7 Société Africaine de Cacao (SACO)*

Food and drink

Côte d’Ivoire

206 879

493 500

+7 Les Ciments du Sahel*

Construction

Senegal

206 408

Diversified

Mauritius

204 750

-39.91%

1 011 10 001

494 388

-106 Rogers & Co (ex Rogers Group)

495

- Lecico Egypt

Construction

Egypt

203 640

26.98%

496

- Ingelec*

Electrical equipment

Morocco

203 361

497

- Gazafric

Oil and gas

Morocco

202 921

21.49%

498 423

-75 Soc. Maroc Émirats Arabes Unis de Développement

Diversified

Morocco

202 094

-23.61%

Services

Dem. Rep. Congo

200 000

Egypt

199 791

3.82%

51 143

499

- ADEN Services DRC

500

- Egyptian International Pharmaceutical Industries Co. Healthcare

2012 reSuLtS in thouSanDS of uS DoLLarS; *IN ITALICS 2011 RESULTS; na: not aVaiLabLe

the africa report

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n ° 57

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f e b r ua r y 2 014

> Corporate and Investment Banking

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Cote d’ivoire Economic phoenix rises from the ashes

w w w.t hea f r ic a r ep or t .c om

united states Soldiers, spies and summiteers

ConstruCtion Lafarge and Dangote battle for dominance

Double issue

the africa report

N ° 6 3 • a u g u s t- s e p t e m b e r 2 014

The

e Botsalo Ntuan Mehdi Jomâa • Okwi ri Oduor • Sim Shagaya • Jack Nkusi Kayonga ohl P n n -A Jo • yele Moctar El Hacen • Maria Ivone Soares • Sia Tolno Phuti Mahan Igho Sanomi • Ganzeer • Joel Embiid • Omar Victor Diop Ismaïl

boma hiam • Eric M T ou ad m A • Douiri

nza • Rachel Mwa

Nelson Chamisa • Lupi ta Nyong’o

rising

stars

monthly • n° 63 • august-september 2014

GroUPE jEUNE AFrIqUE internationaL edition

frontline

The

e Botsalo Ntuan Mehdi Jomâa • Okwiri Oduor • Sim Shagaya • Jack Nkusi Kayonga l h o P n n -A yele • Jo Moctar El Hacen • Maria Ivone Soares • Sia Tolno Phuti Mahan Igho Sanomi • Ganzeer • Joel Embiid • Omar Victor Diop Ismaïl

ric M ou Thiam • E Douiri • A mad

Mwanza boma • Rachel

Nelson Chamisa • Lupit a Nyong’o

rising

sTars

By Sophie Anmuth, Léonce Bitariho, Erin Conroy, Frida Dahmani, Charlie Hamilton, Elissa Jobson, Parselelo Kantai, Mwaura Kimani, Jana Marais, Olivier Monnier, Nicholas Norbrook, Divine Ntaryike, Tolu Ogunlesi, Crystal Orderson, Oheneba Ama Nti Osei, Nadia Rabbaa, Ricci Shryock, Alex Duval Smith and Marshall Van Valen

his year, we honour Africa’s rising talent. This is a continent that belongs to the young: two thirds of Africans are under the age of 35. Through extensive surveys of correspondents and contacts we drew up our longlist. Whittling it down to just 50 names was exhausting, but not exhaustive – the debate will continue at theafricareport.com. In compiling the list, we noticed a real drive. From the explosive power of new athletes to the persistence of young turk politicians, there is a marked change in their beliefs: the old ways are not working, and something has to give. Innovators, financiers and businesspeople are a key part of a continent that wants to do things differently. Mamadou Toure, the founder of Africa 2.0, a group of young Africans in positions of influence, says: “We are all struggling

the africa report

•

n° 63

•

au g u s t- s e p t e m b e r 2 014

every day because of the environment we live and work in. It’s time to step back and say, ‘Let’s change that environment.’” The Africa Report’s 50 Rising Stars is a testimony to that desire to make Africa work better. The success of Oscar-winning actress Lupita Nyong’o has helped breathe new life into the Nairobi theatre where she started out (see page 90). Politicians Lobna Jeribi in Tunisia and Amadou Thiam in Mali are redesigning their damaged democracies from the inside. Internet tycoon Sim Shagaya and Shanduka chief executive Phuti Mahanyele ditched successful careers in the US to get involved in the rough and tumble of African corporate life, and neither regrets it. There are roughly equal numbers of women and men on the list. This is purely accidental, and offers proof that excellence knows no boundaries. ●

50 The

RISING STARS

Senegal

Omar Victor Diop Beauty in the lens of the beholder Raphaël FouRnieR/DiveRgence

The Senegalese photographer battles contemporary issues like immigration. He re-interprets portraits of famous African migrants to Europe during the 15th-18th centuries, such as Girodet’s painting of the former Senegalese slave Jean-Baptiste Belley, who become a member of the convention that initiated the French Revolution. “It is often treated as something new,” he says, “but these two continents have always interacted.” The Studio of the Vanities is an ongoing portraiture series that features a specific modern West Africa aesthetic. For this Diop gathers most of his materials from Dakar markets and uses local tailors to do much of the sewing.

egypt

Ganzeer Kenya

Gachao Kiuna

Ganzeer is perhaps the most famous Egyptian graffiti artist and his art is shown all over the world. But he refuses the label: he is an author, installation artist, painter, speaker and videographer, who started street art at the very beginning of the 2011 uprising. And he is still telling the world about Tahrir Square: “After the uprising, passers-by were very enthusiastic about anti-government graffiti, but with the Military Council or al-Sisi nowadays, onlookers and security forces alike have made street art difficult and dangerous.” For the 32-year-old artist, who chose his pseudonym Ganzeer (bicycle chain in Arabic) as a metaphor for the artist’s role in society, art is participatory, and deals with the immediate struggles of its public.

Backing the infrastructure transformation

Kenya / tanzania

elsie Kanza Standing up to terrorists is all in a day’s work

BeneDikt von loeBell/weF

The CEO of Kenyan infrastructure investment firm TransCentury, Kiuna is one of the youngest executives in the country – of one of the most influential companies to boot, associated with close friends of Kenya’s former president Mwai Kibaki. Started as an investment club 15 years ago, TransCentury has evolved into a firm operating in 14 countries with a market capitalisation of US$77m. Since 2008 Kiuna has overseen the transformation, including listing on the NSE. Identifying the “chronic undersupply” of power and transport infrastructure in Africa, TransCentury’s investment choices are helping the continent become more efficient.

antoine tempé

Revolutionary vision that keeps provoking

Armed with Masters in both finance and development economics, Kanza now exhorts African politicians to seize the current window of opportunity and diversify their economies. She does this as Africa director at the World Economic Forum, which organises a yearly conference – this year defying the terrorists in Abuja – helping to connect top African policymakers with their global counterparts. Prior to that she worked as personal assistant and economic adviser to Tanzanian President Jakaya Kikwete. the africa report

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South AfricA

Phuti Mahanyele

shanduka

From township to the top flight Phuti Mahanyele’s CV reads like a fairytale, from humble beginnings in Soweto to degrees from the US and UK. Born and bred in Dobsonville township, Mahanyele says it was her parents’ strong commitment to her education that inspired her to work hard. Mahanyale joined Shanduka in 2004 as head of energy, and by 2010 was appointed CEO – one of the youngest black women to head up a multi-billion rand black business empire. It was South Africa’s deputy president and former chairman of Shanduka, Cyril Ramaphosa, who asked her to join the company. Previously she worked at the Development Bank of South Africa.

50 The

“

We are driven by a zeal for change and an understanding that (our) democracy was just a façade”

côTe d’ivoire

Sébastien KadioMorokro

Tunisia

Mehdi Jomâa

The coming man in Tunisia has no political affiliation even if he is the prime minister; with his team of technocrats Jomâa aims to put the transition on course. Putting aside his career with Total France to join the government of Ali Larayedh, he was chosen to lead the country as the ‘consensus candidate’ in December 2013 by civil society and political parties. Security and the economic crisis are his main priorities to calm social upheaval before general and presidential elections, planned from October.

ons aBID for ja

Ushering in an era of economic and social stability

Sébastien KadioMorokro, 34, has been CEO of Pétro Ivoire, Côte d’Ivoire’s thirdlargest fuel retailer, for four years. He took over from his father, who founded the company in 1994, after the latter retired. He has diversified the company’s operations, especially in the gas sector, which now represents 20% of revenue. In Côte d’Ivoire, Pétro Ivoire is one of the top two companies in the distribution of butane gas, and it plans to expand its operations in Guinea, Burkina Faso and Senegal. Kadio-Morokro says he wants to turn Pétro Ivoire into a performancecentred company. Hence the opening of its capital to investment funds, and a listing on the Paris-based NYSE Euronext stock exchange in 2011.

Fuel scion taking the family business to the next level

E. Daou Bakary

Amadou Thiam, Mali The Ghana-educated diplomat’s son is Mali’s youngest MP. aged 29 when he was elected, he heads a new generation of politicians shaking up the national assembly from within.

RISING STARS

Kenya

Phanice Mogaka Champion of African integration and women in the workplace Adviser to Kenya’s president, Uhuru Kenyatta, Mogaka’s priority is practical economic integration. She is the unsung hero behind the arrival of Nigerian cement magnate Aliko Dangote in the Kenyan market, “even though I have received all kinds of threats from vested interests in our local cement industry”, she says. She also ensured that the Nigerian president visited Kenya early on in Kenyatta’s tenure. “And he has been three times now in the last year.” She is a champion for equal rights, pushing to get women into sectors where they are under-represented, such as construction, engineering and energy. the africa report

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WOMEN AND WEALTH Breaking through the glass ceiling, women are changing the financial landscape all over Africa.

ethiopia

Samuel Yirga

Ghana

Patience Akyianu

Piano prodigy who arrived late and made up for lost time

A first for Ghana

After joining Barclays in Accra as finance director in 2008, she quickly made her mark and became managing director in October 2013, the first woman to hold such a post in Ghana.

Baseball cap perched atop a mane of dreadlocks, Yirga effortlessly demonstrates his mastery of the keyboard. His hands – deemed too small to play the piano by one music teacher – fly across the keys as he switches from a traditional jazz riff to an improvisation on a theme from the golden age of Ethiopian music. Yirga is now a regular fixture at Mama’s Kitchen, a cocktail lounge on Addis Ababa’s fashionable Bole Road. He came to music late, first touching a musical instrument at the age of 16, but is now hailed as the great new hope of Ethiopian jazz. Yirga’s first solo album, Guzo, or ‘journey’ in Amharic, met with critical and commercial acclaim.

South africa

Jo-Ann Pohl

A banker with global reach

niGeria

Starting her career as a performance consultant at Barclays in 2003, Pohl worked across Africa, the UK and Dubai before being appointed chief financial officer, Africa at Standard Chartered in 2012.

Sim Shagaya A global vision combining shops and clicks

With his Harvard MBA, Sim Shagaya could have waited patiently to work his way up the corporate ladder; a Google gig overseeing the internet giant’s Africa market hinted at such a future. Today he is CEO of a successful billboard advertising firm, as well as two of Nigeria’s leading e-commerce sites, DealDey (discount deals) and Konga (retail). Shagaya’s vision is sophisticated: he thinks online retail in Nigeria is near-uncharted territory, and that retailers will eventually experiment with a blend of brick-and-mortar and e-commerce: “flagship stores” in urban hubs like Lagos and Port Harcourt, with online serving the rest of the country.

namibia

Monica Kalondo

Adviser in high places Managing Director at Stimulus Private Equity, Kalondo serves on the national council of the chamber of commerce. She has been on the President’s economic advisory council and has been deputy chair of the Public OfficeBearer’s Commission since 2006. Kenya

Mary Wamae

Deal-maker supreme Equity Bank’s 44-year-old company secretary and director of corporate strategy, who joined the firm in 2004, is said to be one of the main deal-makers at the firm and the CEO’s right hand. Kenya

Andia Laura Chakava

yOrK tIllyEr

Asset entrepreneur

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Chakava is co-founder and managing director of Alpha Africa Asset Managers, having previously been the youngest CEO ever appointed to Old Mutual Investment Group.

50 The

RISING STARS

Kenya

Lupita Nyong’o New face of Africa in Hollywood

CYRIL VILLEMAIN/SIPA

The Yale-educated polyglot – fluent in Luo, English, Swahili and Spanish – became an overnight sensation following her Oscar-winning performance in the historical movie 12 Years a Slave, the first for an African actress. Her rise to stardom has given new life to the once-faltering Nairobi-based Phoenix theatre, where she made her acting debut aged 14. As of June 2014, Nyong’o has acquired the rights to produce her first feature film, an adaptation of the Chimamanda Ngozi Adichie novel Americanah. She has also been cast for the much-anticipated Star Wars VII, scheduled for release in 2015.

RWANDA

Jack Nkusi Kayonga

Troubleshooter with a track record

EffigiE/lEEMagE

After turning round the troubled Rwanda Development Bank, where he was CEO from 2005 to 2009, Kayonga has earned the trust of the highest authorities in the country. The youthful investment banker was appointed in late 2013 as the board chairman of Crystal Ventures, the crown jewel of the ruling Rwanda Patriotic Front. Kayonga’s appointment is widely seen as an attempt to streamline the investment company’s operations as it strives to operate as a competitive private venture capital fund.

NigeRiA

Chika Unigwe

Martina Bacigalupo for ja

Literary sister whose voice carries far

BuRuNDi

Pacifique Nininahazwe Energetic defender of human rights

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NigeRiA

Igho Sanomi Stellar entrepreneur with time for others

Nininahazwe, 36, is a fervent preacher of national reconciliation in Burundi. A founder of pro-peace NGO Forum pour la Conscience et le Développement, he has played a key role in federating civil society organisations for greater political weight. He created the ‘Green Friday’ movement, calling for the release of those wrongly imprisoned, which he argues includes Pierre Claver Mbonimpa, jailed for a report that alleged Burundian youths were being trained by paramilitary forces in the Democratic Republic of Congo. He is a long-time member of FORSC, an association of more than 150 groups fighting for human rights in Burundi.

Author of four novels in English and Dutch, Unigwe won the Nigeria Prize for Literature in 2012 for On Black Sisters’ Street. Her latest novel, Black Messiah, is a fictional retelling of the life of Olaudah Equiano, the 18th-century slave whose autobiography in 1789 energised the abolitionist movement. She has been a loud voice in the campaign to pressure the Nigerian government into rescuing the schoolgirls abducted by Boko Haram.

Igho Sanomi, 39, founded Taleveras in 2004. Today the company is a behemoth, spanning oil and gas, construction and power. One recent acquisition was a controlling stake in the privatised power company that serves four states in the south of Nigeria. He takes his philanthropy as seriously as he does expanding the frontiers of Taleveras: the Dickens Sanomi Foundation, named for his late father, sponsors writing, music and sports contests, and provides humanitarian relief to disaster victims in Nigeria’s delta region.

50 The

RISING STARS

THE RECORD BREAKERS On the field, the court, the track and the road, a new generation of athletes is going for gold.

egypt

Nader Bakkar

Mauritania

A Salafist who is willing to compromise

Moctar El Hacen

Schoolboy sensation Since being talent-spotted on the streets outside Nouakchott, this 16-year-old footballing prodigy is being tipped as one of the most promising players of his generation.

Nader Bakkar has risen quickly in Islamist politics. The tech-savvy co-founder of Egypt’s biggest Salafist party says his interest in politics started after the 2011 uprising. A business graduate, the 29-year-old also has a talent for survival. The Al-Nour party backed Abdel Fattah al-Sisi throughout his overthrow of Mohamed Morsi’s government to widespread criticism – but with the result that Al-Nour has survived. Its top leadership are not languishing in jail or exile, unlike those of the Muslim Brotherhood or more hard-core Salafist groups such as Asala and Jamaa Islamiya. Bakkar is one of Al-Nour’s media and foreign affairs specialists.

ZaMbia

algeria

Rungano Nyoni

Islam Slimani

One in the eye for Russia

Bewitching new film-maker between London and Lusaka

The striker, who plays in the Portuguese premier league, scored the goal that knocked Russia out of the 2014 World Cup and got Algeria to a historic second-round match.

JAmie SquiRe/GeTTY imAGeS/AFP

Nyoni is a writer and director best known for the 2011 short film Mwansa the Great, which picked up a BAFTA nomination in 2012 and a slew of other awards. She co-wrote the screenplay for The Mass of Men, which also won accolades at film festivals in 2013. Telling the story of an unemployed man, and inspired by the London riots in 2011, it deals with the effects of repression and disillusionment. In May she received funding for her latest project and first feature film, I Am Not a Witch, which charts the tough decisions that face a child exiled from her family for having magical powers. She is also working on two other films – Z1 and Diary of Incidences – and a comedy series based in London called Pre-Life.

CaMeroon

Joel Embiid

Phily’s great hope This 20-year-old basketball player, who plays defence for the Philadelphia 76ers, has the talent that made him No. 3 pick in this year’s NBA Draft, but he is struggling to recover from a serious foot injury. South afriCa

Mapaseka Makhanya

Hot-footed superstar

Crowned South African Sportswoman of the Year in 2013, this middledistance runner has her sights set on scooping gold in the 2016 Rio de Janeiro Olympics. eritrea

Natnael Berhane Voted African Sportsman of the year in 2013, this record-breaking cyclist became the first African to win the prestigious Tour of Gabon, but he is currently battling a run of bad form, which forced him to pull out of the Tour de France.

Amel PAiN/ePA/mAXPPP

Wheels of steel

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DrC

Rachel Mwanza

vincent fournier/ja

ComoroS

Sakina M’sa A talented designer, Sakina M’sa spent her first seven years living in Comoros, before her family moved to France, where she cut her teeth in the fashion world. She began selling her colourful and geometric work in the French department store Galeries Lafayette and mail-order company La Redoute, before creating a label under her own name and opening a Paris boutique as well as a pop-up store in BHV Marais. But in recent years she has been turning back to her homeland. Training women from disadvantaged backgrounds in fashion manufacturing skills, M’sa ensures they learn the textile industry back to front before helping them set up their own workshops. In late May 2014 she was patron of the second contemporary art fair in Comoros – introducing a runway show into the busy marketplace in Volo Volo, Moroni.

e. solomon/addis standard

From Paris pop-up to vogueing on the catwalks of Volo Volo

The 17-year old’s rise to fame was accompanied by hunger, rape and violence. It was during her four years as a street kid in Kinshasa that Mwanza caught the eye of Canadian producer Kim Nguyen. He cast her as the lead in his 2012 movie Rebelle (‘War Witch’). Her performance as child soldier, Komona, won her a slough of awards. In January 2014, she released her autobiography, Survivre pour voir ce jour (Surviving to see this day), a collaboration with Mbepongo Dedy Bilamba. She is now an advocate for the rights of street children in her native DRC.

caine prize

A star from the streets of Kinshasa

Sierra Leone

Olufemi Terry A sense of comparison Terry, who works at the International Finance Corporation, won the 2010 Caine Prize for his short story ‘Stickfighting Days’ and is working on a novel set in New York in the 1990s. Writing about his recent arrival in Germany, he said: “Africa’s traditions are vivacious and unconfined to museums and opera houses. Yet, both places are akin: Europe – insular, chauvinistic – is Africa overlaid with material wealth, with an inscribed history.”

“

There should be an alternative to the government narrative... the media has this” Tsedale Lemma, Ethiopia the editor in chief of Addis Standard is not afraid to stand her ground against state censorship.

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50 The

RISING STARS

KenyA

Okwiri Oduor

max mogale

Prize-winner who dares to be different

South AfricA

Nonku Phiri Rebel who has found her voice Phiri’s voice first got her noticed during a school detention when she was 18. Years later, and armed with her degree in marketing and strategy, she is still kicking back, against music bosses this time. Despite being a new kid on the block, she opened the stage for hip-hop luminary Yasiin Bey (Mos Def ) when he toured South Africa. Describing herself as very shy and going by her alter ego, Jung Freud, Phiri is hard at work on a new album. Phiri plans to travel around Africa and explore her current obsession with Malian and Ethiopian jazz. “I would like my music to be a bridge and help young people find their voice.”

Few have achieved so much in so short a time as Okwiri Oduor. The 24-year-old Nairobi-based writer has just won the Caine Prize for her short story ‘My Father’s Head’. Oduor’s work straddles rural and urban universes, and is an exquisite take on memory, and the loss of it. It is interspersed with gorgeous descriptions of food and cooking – an oblique echo, perhaps, of Kenyan writer, Binyavanga Wainaina. Her novella The Dream Chasers was highly commended at the Commonwealth Book Prize in 2012 when she was just 21 years old. Like Helen Oyeyemi before her, Oduor’s preference for new and experimental forms, rather than the well-worn social realist trope, marks her out as a writer to watch. Her success also underlines the diversity of Nairobi’s publishing ecosystem, a decade after the advent of Kwani?, the pathbreaking Kenyan literary journal. A large number of complementary journals, often online, have emerged.

Drc

eric Mboma Banker forging links between Asia and Africa

MAli

Mamadou Toure eric larraYadieU/ja

Launch-pad for a new generation The founder of Africa 2.0, a pan-African organisation of young leaders in business, politics and civil society, is pushing his generation to give back: “It’s about going the extra mile after the work day”. Toure prefers action to talk. Africa 2.0 worked with the World Bank on its plans to invest $129m in regional centres of excellence. Africa 2.0’s ‘Start-up Africa’ events have mentored 1,000 firms, and financed 100. the africa report

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n° 63

Mboma, like several on our list, is a ‘repat’: an African who left the continent, only to return later, armed with expertise. Born in Kinshasa, and educated in Lubumbashi, he eventually moved to France at the end of the 1980s. After a stellar academic career that includes Harvard Kennedy School of Government and the University of Chicago Booth, he eventually moved to Singapore, to work for mining giant BHP Biliton, before being hired by Africa’s largest financial institution, Standard Bank, to run their operations in the DRC. While in Singapore he helped organise conferences bringing together Asian and African businesspeople, something he has continued to do on his return to the DRC by partnering with the Platinum Circle, a Singapore-based business group. •

a u g u s t- s e p t e m b e r 2 014

Guinea

Sia Tolno Singing past the hope and pain

Youri Lenquette

Sia Tolnoâ&#x20AC;&#x2122;s latest album, African Woman, is a politically conscious collection of songs created with veteran Afrobeat drummer Tony Allen. Born in Sierra Leone, Tolno was forced to flee the civil war at age 20 and found refuge in Conakry, where her powerful singing in local nightclubs quickly got her a record deal. She released her debut album Eh Sanga in 2009. My Life, released in 2011, focuses on painful moments of her past as much as it is a celebration of her life.

50 The

RISING STARS

the power seekers Meet the ruling party and opposition youth who are waiting in the wings

Buti Manamela

SACP comrade in power

Manamela is now deputy minister in South Africa’s presidency, working with ANC’s top brass, such as Jeff Radebe.

Maria Ivone Soares ATTIJARIWAfA

A voice in opposition

MoroCCo

Soares now speaks for Mozambique’s RENAMO party in parliament, a critical voice as the gas money starts to roll in.

Botsalo Ntuane Inside the tent

Ismaïl Douiri Leading the charge for Morocco’s banks Douiri, 44, is Attijariwafa Bank co-CEO, and stands a good chance of replacing Mohamed El Kettani as chairman. He is most proud of helping Attijariwafa Bank become a regional group with subsidiaries in 23 countries. “Now is the time to look towards new geographies: we are now exploring the idea of entering English-speaking markets like Ghana or Nigeria”. Douiri has close ties with the Istiqlal Party, as does his family – both his father and brother have served as ministers.

The Botswana oppositionist is back to working with President Ian Khama.

Nelson Chamisa Ready and willing

The organising secretary of Zimbabwe’s MDC party could be a replacement for embattled leader Morgan Tsvangirai.

Barthélémy Dias Rapid rise

A firebrand of Senegal’s Parti Socialiste, at 39, Dias is mayor of Sacre-Coeur and secretary of the National Assembly.

Sammy Awuku

Central afriCan republiC

Youthful aspirations

Yvon Kamach

Investors may shy away from the CAR, but KGroup has been the country’s largest private-sector employer through the ups and downs. Born in 1972, Kamach took over the management of the firm – active in the timber, services, distribution and real estate sectors – from his father in 2012. He is also a director of Commercial Bank of Central Africa and vice-president of the chamber of commerce. Kamach founded the Fondation Centrafricaine pour la Paix et la Démocratie, which launched think tank Fini Sêse (New Land) to find solutions to the political and social crises in the country.

ONS ABID

Awuku is moving up the hierarchy of Ghana’s NPP, and is also vice-chairman of the International Young Democrat Union.

Zitto Kabwe tunisia

Lobna Jeribi A personal and political uprising

KGROUP

Like father, like son: creating jobs and finding solutions in CAR

with a French phD, Lobna Jeribi chose business, not politics. But the tunisian revolution of 2011 changed her path. this mother of two boys joined the social democrat party, ettakatol: 10 months later she was elected as a member of the constituent assembly and started work on the constitution.

Tanzania’s chief bean-counter CHADEMA party member Kabwe is head of the parliamentary accounts committee and a thorn in the side of the ruling party.

Serge Bouya

From bills to boats

Congo’s youngest MP is now the deputy director of the Pointe-Noire port.

Malika Bongo Ondimba Gabon’s insider princess

The President’s eldest daughter is married to the son of oil trader Sam Dossou. She was elected as deputy mayor of Akanda in December.

Juvénal Munubo DRC defender

The MP from Vital Kamerhe’s UNC party has been vocal about President Joseph Kabila’s attempts to extend his mandate. the africa report

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a u g u s t- s e p t e m b e r 2 014

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top

200 BANKS

Finance special edition

S e p t e m b e r 2 014 - w w w.t heaf r ic arepor t .com

STOCK EXCHANGES • Regional analysis • Key Deals • faces of finance • star performers • innovation

south africa

nigeria

thomas piketty

Tough times ahead warns

Mortgage finance to

”Strong markets need

new finance minister

transform economy

strong governments“

Africa bets

on Africa Businesses and governments across Africa seize the profit potential at home

groupe jeune afrique INTERNATIONAL Edition

trenDinG

Dealbook bonD issuances top 10 african bonDs h1 2014

140

issuer

$15

$10

09 10 10 11 11 12 12 13 13 2014

Rank Value ($ bn)

s&p ratinG

maturity country

16/6 US$ 1,500

6.875%

24/6/24 Kenya

B+

morocco (Govt of)

13/6 EUR 1,000

3.500%

19/6/24 Morocco

BBB-

100

office cherifien Des phosphates (ocp)

17/4 US$ 1,250

5.625%

25/4/24 Morocco

BBB-

anGlo american

3/4*

EUR 750

1.750%

3/4/18 Other (Africa) BBB

anGlo american

3/4*

EUR 750

3.250%

3/4/23 Other (Africa) BBB

afDb

5/3 US$ 1,000

0.875%

15/5/17 Supranational AAA

Zambia (Govt of)

8/4 US$ 1,000

8.500%

14/4/24 Zambia

first Quantum minerals

8/5

7.250%

15/5/22 Other (Africa) B+

2009

coupon

kenya (Govt of)

40 $5

amount (million)

120 $20

SUB-SAHARAN AFRICA TARGET M&A VOLUMES

Date priceD

# Deals

m&a that sinkinG feelinG Mergers and Acquisitions in subSaharan Africa plunged by 46% in the first half of 2014, compared to the same period last year.

puma enerGy tullow oil Zenith bank

US$ 850

28/1

US$ 750

6.750%

1/2/21 Other (Africa) NR

3/4

US$ 650

6.250%

15/4/22 Other (Africa) BB-

11/4

US$ 500

6.250%

22/4/19 Nigeria

3m Libor US$ 500$ +0.95%

BB-

15/4/16 Other (Africa) BBB

anGlo american

15/4*

anGlo american

15/4*

US$ 500

4.125%

15/4/21 Other (Africa) BBB

kenya (Govt of)

16/6

US$ 500

5.875%

24/6/19 Kenya

afDb

28/1

GB£ 250

1.125% 15/12/16 Supranational AAA

china Ghana misses out on loan packaGe

It never rains but it pours. After announcing that it could not agree to financing terms with the China Development Bank, the Ghanaian government cancelled a planned $1.5bn tranche of a $3bn deal in July. The two sides first agreed to the loan framework in 2011, and the first $1.5bn is for the construction of a gas plant in the Western Region that has been delayed due to payment and other problems. Finance minister Seth Terkper said the first half of the loan will be disbursed in its entirety. The remaining money was due to finance other infrastructure projects. The Ghana Ports and Harbours Authority, which started works to expand the Takoradi port in anticipation of the second tranche, says the financing cancellation will not scupper the project. The authority explains that it has recourse to other sources of financing that will allow it to complete the port project, which is being carried out by China Harbour Engineering Company. Once completed, the port will have a new oil and gas services terminal.

B+

SOURCE: DEBTWIRE CEEMEA

$25

160

* LISTInG DATE

loans top 10 african loans h1 2014 company

Date priceD

amount (us$ million)

maturity

sector

country

Mining

Zambia

first Quantum minerals

May

1 200

2019

May

1 800

2019

kenya airways

March

1 300

2026 Transport

oanDo enerGy resources

31/1

350

2020

31/1

450

2019

african exportimport bank

20/3

467

2016

20/3

309

2016

tullow oil

April

750

2017 Energy

lake turkana winD power

24/3

601

2029

24/3

2029

May

500

2019 Transport

Other/South Africa

19/2

324

2021 Telecoms

Egypt

28/2

2016

28/2

205

2019

7/4

140

2017 Energy

textainer Group holDinGs eGyptian company for mobile services (mobinil) fonDs D’entretien routier caracal enerGy

THE AFRIC A REPORT

●

Kenya

Energy

Nigeria

Financial Services

Supranational Other/Africa

Energy

Kenya

Transport

FInAnCE SPECIAL

Cote d’Ivoire Chad ●

S E P T E M B E R 2 0 14

SOURCE: DEBTWIRE CEEMEA

$30

SOURCE: THOMPSOn REUTERS

TOP 200 BANKS

FINANCE

RECOVERY HITS Southern Africa weighs down the continent but assets are meagre elsewhere. As an era of cheap money ends bankers are looking to innovations to attract the unbanked and increase deposits

A ROUGH PATCH By Gemma Ware

CHRISTIAN KASONGO/JA; FOTOLIA

n overall slowdown in the growth of Africa’s biggest 200 banks belies a more complicated picture of regional ups and downs. Despite the entry of newcomers lured by large populations with very limited access to financial services, a clutch of pan-African giants looks set to continue its dominance, especially in the face of a global tightening of the supply of capital. Taking the continent as a whole, the biggest banks experienced their own double dip. The total assets of Africa’s top 200 banks in our 2014 rankings, which is based on banks’ 2013 results, stood at $1.39trn, down 3.9% on the previous year. This marks a reversal of the recovery that banks in our ranking experienced between 2011 and 2012, when their assets grew by 5.7%, after a couple of years of struggle following the financial crisis in the US. The poor performance was led by Southern African banks, which represent 46% of the assets in the top 200. They experienced a big decline in their assets – falling 8.7% to $638.8bn in 2013 from $699.8bn in 2012. Excluding the assets of banks from Southern Africa, the remaining banks in the top 200 grew their assets by 0.6% from 2012 to 2013. This matches trends observed by bank analysts. Ronak Gadhia, Africa equity research analyst at London-based securities house Exotix, says that Exotix’s statistics for the big banks – excluding South Africa – show that “total assets for African banks have consistently and significantly grown since 2010.” The regional disparities do not detract from the wider picture of long-term

top 200 banks

growth in African banking. The total assets of the top 200 largest banks grew by 29% from 2008 to 2013. As part of that trend, the total loan book of the banks in the top 200 rose by 40.7% between 2008 and 2013 to $751.5bn. Deposits grew 34.2% over the same period to $969.6bn. Despite the slowdown, the top 200 banks have continued to raise their net interest income – the difference between interest paid on loans and deposits. It has risen every year since 2010. It grew by 45% since 2010, to $60.9bn in 2013. Yet even regions that had seemed to be growing at the fastest pace recorded slowdowns last year. The total assets of the top East African banks, which grew every year since 2008, experienced a 5.2% drop between 2012 and 2013. In Central Africa, which is starting from a low base, asset growth slowed from 33.7% between 2011 and 2012 to 2.2% between 2012 and 2013. currency depreciations Africa’s gross domestic product is set to increase by 5.5% in 2014 according to the International Monetary Fund (IMF), but it warns that banks could face more risk from a tightening of global financial conditions and a withdrawal of the cheap money from the West that foreign investors have poured into emerging markets. In its April 2014 economic outlook the IMF cautioned that banks that lend in foreign currency could “experience an increase in non-performing loans if large currency depreciations reduce their borrowers’ repayment capacity”. Any impact on real estate from a flight by foreign investors may also hurt banks. Sridhar Nagarajan, the chief executive of Standard Chartered Bank Mauritius, argues that Africa’s banks “stand to benefit from the continent’s positive economic growth”, pointing to innovations such as mobile banking and more sophisticated financing structures. East Africa has been the testing ground for a lot of the continent’s innovations in mobile and agency banking – where agents act as intermediaries to cut costs. It is still early days, but Kenya recorded a 13.3% increase in customer deposits between 2012 and 2013 as a result (see page 96). Some established global brands are moving to expand their operations in Africa too. After a partnership with South Africa’s First National Bank (#12) in 2011, PayPal, the online payment plat-

CHANGE IN TOTAL ASSETS (% and US$) Top 5 winners

633.62%

135.22% 118.72%

45.71%

4 358 185 AFRICAN EXPORTIMPORT BANK (Egypt)

45.02%

1 517 589

750 932

627 500

1 275 044

STANDARD BANK DE ANGOLA (Angola)

ORABANK TOGO (Togo)

BANK OF AFRICA (Mali)

BANK ATLANTIQUE CÔTE D’IVOIRE (Côte d’Ivoire)

AFRICAN BANK (South Africa)

Top 5 losers BGFIBANK GUINÉE ÉQUATORIALE (Equatorial Guinea)

649 025 -24.15%

SBI MAURITIUS (Mauritius)

STANDARD BANK OF SOUTH AFRICA (South Africa)

MERCANTILE BANK (South Africa)

981 086

96 711 490

-19.46%

-16.16%

720 359 -13.68%

6 064 856 -12.90%

Top 200 asset breakdown Southern Africa

North Africa

1 199 383 166

1 374 943 354

2010

2011

West Africa

1 368 293 495

East Africa

1 447 556 952

2012

form, partnered with EquityBankKenya (#86) in 2013 and launched operations in Nigeria in July with the support of First Bank of Nigeria (#14). African banks made a 24% return on capital in 2013 – double the average for the rest of the world – according to The Banker magazine. Exotix’s Gadhia says these returns are driven by high interest rates – many African treasury bond interest rates are in the mid-teens – and low levels of competition. The total profits of the banks in our top 200 list that provided data was $19.8bn. Of this, 47% came from the top 10 most profitable banks.

Central Africa

1 391 271 555

2013

2014

Standard Chartered’s Nagarajan says it is important to take into account the breadth and depth of financial systems in developed economies before making comparisons. “The risk profile of the African markets, barring a few, is considerably high, requiring a higher return on capital,” he says. He expects that as markets mature in Africa, “the returns are bound to converge to global averages, as we have seen in the Asian markets since the 1990s.” When it comes to African loans and deposits, the growth in both has stagnated. Loans made by the top ● ● ●

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Financial Institutions

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top 200 banks

200 banks grew 0.3% from 2012 to 2013, while deposits rose by 0.1%. Again, these headline numbers hide a more complicated regional picture. In North Africa, which has seen slow growth in deposit-taking since the Arab Spring, there was 8.6% growth in deposits in 2013. Deposits in West Africa also grew by the same amount. Southern Africa’s banks dragged the overall figure down, with a 8.4% decrease. The same regional story is present for loan books. An 8.4% drop in loans in Southern Africa was counterbalanced by 5.2% growth in North African loan books and 22.5% growth for West African loans.

●●●

south africa looks outside Questions remain about the health of South Africa’s loan books and high levels of household debt. Troubles at African Bank (#41), while isolated, have shaken confidence in unsecured loans (see page 106). A highly competitive market with a sluggish economy has left South African banks looking outside the country to expand their revenue bases. Sustained growth has created new opportunities for local businesses to cater to middle-classconsumers.“Theexpansion plans of local indigenous companies are becomingmoreambitiousand,unlikethe multinationalcompanies,theyareraising capital locally – either from banks or the capital markets,” says Gadhia. Banks are teaming up because of the amounts of borrowing needed and the risk attached to it, offering syndicated loans to companies such as the Dangote Group and Oando in Nigeria. In 2013, there were 60 of these syndicated loans in sub-Saharan Africa, up from 28 in 2010. Banks from India and China are also eyeing opportunities in the region, following the lead of their compatriots. In July, ICICI Bank, India’s second-largest bank, announced plans to convert its representative office in Johannesburg into a fully fledged bank and open operations in Mauritius. But Gadhia says the dominance of the African financial sector by five or six large banks, which typically have 50-60% of the market share, is unlikely to be disrupted by new entrants such as Atlas Mara. “We think their position is unlikely to be challenged unless the new entrants have a significant capital base to either be a big player in the corporate market or roll out a large branch network,” he concludes. Time will tell, but for now the status quo looks set to endure. ●

LOANS AND DEPOSITS BY REGION North Africa

$ bn

West Africa

Central Africa

East Africa

Southern Africa

Total loans

800 700 600 500 400 300 200 100 0

Total deposits

1 200 1 000 800 600 400 200 0

Total interest income

80 70 60 50 40 30 20 10 0

2009

2010

2011

2012

2013

2014

methodology how we compile our rankings to compile our ranking of africa’s top 200 banks, we sent out detailed questionnaires to more than 900 financial institutions based on the continent. We used their replies to create a systematic ranking of africa’s top banks based on total asset size. We

publish only the top 200 banks in our list. all the data is communicated to us by the banks themselves or their parent companies. the numbers relate to the 2013 financial year. Where that information was unavailable we used 2012 figures, which are marked the afric a report

●

as such. the data was converted to uS$ using the exchange rates applicable on 12 December 2013 for a consistent comparison. numbers in the ‘rank 2012’ column refer to a bank’s position in The Africa Report’s ranking of September 2013. ●

finance special

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s e p t e m b e r 2 0 14

top 200 banks

Rank ’13

DIFF.

Rank ’14

RankInGs 2014 1-40

the bank plans to open in one other country – probably tanzania, mozambique or angola – to deepen its retail banking in that region”

segun agbaje, ceo of Guaranty trust bank (#21)

n ba

bank name

countRy

- standard bank Group

South Africa

total assets

161 296 694

net InteRest Income

loans

DeposIts

6 988 251 85 620 500 93 941 551

- standard bank of south africa

South Africa

96 711 490

4 925 267 67 108 289 68 672 520

- barclays africa Group (ex-absa Group)

South Africa

91 391 905

3 079 815 57 628 082 55 978 647

- FirstRand Group

South Africa

82 792 489

2 352 868 57 022 420 66 354 876

- nedbank Group

South Africa

71 361 349

2 020 144 55 156 214 57 401 030

- national bank of egypt

Egypt

61 190 260

1 016 577 16 784 469 53 068 640

- attijariwafa bank

Morocco

46 631 991

2 162 098 30 325 691 28 736 301

- Groupe banque centrale populaire

Morocco

35 108 761

1 594 110 24 167 077 25 396 312

- banque misr

Egypt

31 199 163

944 218

6 969 368 27 005 124

+1 banque marocaine du commerce ext.

Morocco

28 626 135

1 196 218 18 065 413 17 994 663

+2 banque nationale d'algérie

Algeria

27 845 733

1 000 046 16 763 898 19 088 832

- First National Bank South Africa* -3 banque extérieure d'algérie +1 First bank of nigeria -1 ecobank transnational Inc. +5 crédit populaire d'algérie -1 Zenith International Bank*

South Africa

27 019 543

982 383

Algeria

26 599 000

575 000 17 568 000 21 684 000

Nigeria

23 806 656

1 415 207 10 880 150 18 013 848 1 050 758 11 421 605 16 489 904

Togo

22 532 453

Algeria

17 357 460

491 789

8 680 144 13 043 581

Nigeria

16 642 781

1 001 677

6 482 821 12 327 869

- commercial International bank

Egypt

16 267 712

722 166

5 983 246 13 863 428

- united bank for africa Group

Nigeria

16 250 120

942 980

5 766 363 13 291 269

-3 Zenith Bank Nigeria*

Nigeria

15 571 702

1 337 395

5 721 312 11 514 831

+3 Guaranty trust bank

Nigeria

12 932 505

1 183 237

8 779 086

8 872 617

+4 Qatar national bank al ahli (ex-nsGb)

Egypt

11 620 828

116 455

5 561 865

9 679 830

+1 banco angolano de Investimentos

- access bank Group

+3 société Générale maroc

Nigeria

11 288 116

276 728

4 986 110

8 188 225

Angola

10 625 663

580 334

2 511 134

9 228 006

Morocco

9 897 609

489 444

7 819 255

6 526 406

36 +10 Diamond bank

Nigeria

9 340 971

643 462

4 238 383

7 417 171

39 +12 ecobank nigeria

Nigeria

9 232 000

469 800

3 918 000

7 001 000

+7 banco de Fomento angola

Angola

8 871 289

436 962

1 567 281

7 798 117

+2 HSBC Bank Egypt*

Egypt

8 590 114

486 436

3 119 956

7 522 132

+3 Arab African International Bank*

Egypt

8 197 044

202 299

3 412 043

5 970 838

+1 banque marocaine pour le comm. et I’Ind. Morocco

8 104 537

378 788

6 305 439

5 352 388

+6 Banco BIC*

6 914 226

176 552

2 578 540

5 473 426

+7 skye bank

Angola

Nigeria

6 867 311

379 443

3 381 627

5 063 449

46 +12 Fidelity bank

Nigeria

6 649 485

189 494

2 620 367

4 958 868

Egypt

6 486 184

264 251

2 731 769

5 820 910

+8 Faisal Islamic bank of egypt

50 +14 the mauritius commercial bank

Mauritius

6 262 523

308 720

4 436 287

4 817 323

47 +10 First city monument bank

Nigeria

6 200 923

345 222

2 770 778

4 398 567

Nigeria

6 166 949

353 139

1 411 683

2 968 642

49 +10 crédit du maroc

+3 union bank of nigeria

Morocco

6 076 945

250 835

4 455 729

4 449 488

Gabon

6 076 304

393 821

4 242 356

4 901 494

+5 bGFIbank Holding corporation

2013 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2012 RESULTS

the afric a report

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s e p t e m b e r 2 0 14

top 200 banks

DIFF.

RANK ’13

RANKINGs 2014 41-80 RANK ’14

bANK NAme

-4 African bank

53 +10 Groupe Bank of Africa*

- bank of Alexandria

the top 20 employees at egypt’s bank of Alexandria (#42) secured an unprecedented salary increment in the first four months of this year, receiving an average monthly salary of e£2.5m ($350,000)

couNtRy

Net INteRest INcome

totAl Assets

loANs

South Africa

6 064 856

Egypt

5 852 007

341 982

2 803 205

4 851 525

Mali

5 796 172

397 757

2 960 927

4 265 375

5 513 063

277 753

3 499 749

4 476 582

+7 banque Internationale Arabe de tunisie Tunisia

1 070 355

DeposIts

5 738 740

2 373 371

+9 Société Tunisienne de Banque*

Tunisia

5 065 245

142 189

3 707 206

3 654 203

+6 Banque Nationale Agricole*

Tunisia

5 050 731

189 288

4 105 972

3 364 002

61 +14 crédit Immobilier et Hôtelier

Morocco

5 012 957

209 269

3 844 709

2 686 321

58 +10 stanbic Ibtc bank

Nigeria

4 692 733

227 630

2 361 151

2 878 434

60 +11 Amen bank

Tunisia

4 568 334

160 532

3 463 865

3 131 970

+6 Crédit Agricole Egypt*

Egypt

4 471 680

158 638

2 036 141

3 624 382

+8 Kenya commercial bank Group

Kenya

4 451 799

375 691

2 593 751

3 481 458

+5 Hsbc mauritius

Mauritius

4 449 677

67 728

2 683 492

3 149 765

+2 capitec bank

South Africa

4 397 380

694 967

2 861 031

3 374 714

Egypt

4 358 185

89 079

3 487 002

216 373

54 194 +140 African export-Import bank 55

+7 sterling bank

Nigeria

4 352 953

220 248

1 978 724

3 508 643

+7 Arab bank for economic Dev. in Africa

Sudan

3 901 795

210 898

+7 Banque de l'Habitat*

Tunisia

3 860 301

133 312

2 852 115

2 418 255

68 +10 Afriland First Group

Cameroon

3 748 421

187 089

1 978 173

2 902 476

72 +13 barclays bank mauritius

Mauritius

3 714 211

50 242

1 246 923

3 011 524

+5 Kenya commercial bank

Kenya

3 682 529

458 984

2 259 435

2 701 854

+9 Land and Ag. Dev. Bank of South Africa*

South Africa

3 626 736

94 878

3 177 456

+7 state bank of mauritius

Mauritius

3 553 008

297 144

2 237 377

2 649 891

+3 Standard Chartered Bank Mauritius*

76 +12 standard chartered bank Nigeria

Mauritius

3 426 600

53 023

1 075 143

624 827

Nigeria

3 394 381

277 797

2 327 918

2 815 634

86 +21 Atlantic business International

Côte d'Ivoire

3 391 366

182 148

1 933 785

2 001 866

Tunisia

3 326 729

164 317

2 374 529

2 550 252

- bank Audi (egypt)

Egypt

3 239 144

1 559 261

2 836 595

+7 equity bank Group

80 +11 bNp paribas el Djazaïr

+7 Attijari bank

Kenya

3 163 333

301 732

1 951 825

2 222 793

Algeria

2 979 478

165 365

1 401 948

2 400 878

+1 Arab Tunisian Bank*

Tunisia

2 967 811

102 094

1 611 272

2 284 756

+3 NbK-egypt (ex-Alwatany bank of egypt)

Egypt

2 916 781

97 567

954 586

2 496 145

82 +10 société Générale Algérie

Algeria

2 835 994

186 837

1 438 573

2 320 415

87 +14 banco Internacional de moçambique

Mozambique

2 833 655

266 672

1 688 022

2 209 029

Gabon

2 758 251

154 422

2 104 430

2 332 399

92 +17 banco comercial e de Investimentos

Mozambique

2 725 507

172 195

1 500 492

1 991 798

+9 bGFIbank Gabon

+1 Suez Canal Bank* - banque sahélo-saharienne Inv. comm.

Egypt

2 717 490

Libya

2 671 072

127 320

917 359

1 636 885

78 100 +22 co-operative bank of Kenya

Kenya

2 633 543

317 665

1 561 424

1 998 092

Egypt

2 608 710

2 222 424

2 588 087

92 119

716 170

2 041 556

- Al baraka bank egypt

+1 Société Arabe Internationale de Banque* Egypt

2013 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2012 RESULTS

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top 200 banks

DIFF.

RANK ’13

RANKINGs 2014 81-120 RANK ’14

the major concern remains with our customers in the construction industry where payments have not been forthcoming for various contracts” i&m

Arun s. mathur, ceo of investment & mortgages bank (#115)

k ban

bANK NAme

+3 Ahli United Bank Egypt*

couNtRy

Egypt

totAl Assets

Net INteRest INcome

2 484 575

loANs

DeposIts

1 187 370

+9 Unity Bank*

Nigeria

2 427 878

1 188 539

1 681 153

+2 banque de tunisie

Tunisia

2 412 666

113 369

1 927 720

1 689 982

95 +11 export Development bank of egypt

Egypt

2 373 560

62 323

916 795

1 785 654

85 102 +17 barclays bank of Kenya

Kenya

2 354 757

214 815

1 348 143

1 721 314

Kenya

2 325 264

184 701

1 379 178

1 879 434

+3 Equity Bank Kenya*

+3 Abu Dhabi Islamic Bank-Egypt*

Egypt

2 297 680

2 064 233

+9 union Internationale de banques

Tunisia

2 283 962

115 991

1 987 138

1 864 157

+4 Standard Bank Mauritius*

Mauritius

2 274 479

18 982

408 523

1 539 402

+4 Standard Chartered Bank Kenya*

Kenya

2 265 659

159 135

1 305 003

1 627 278

+8 Commercial Bank of Eritrea*

Eritrea

2 224 528

19 392

72 849

2 082 627

Tanzania

2 162 717

1 215 795

1 809 655

93 107 +14 cceI bank Ge

92 101

Equatorial Guinea

2 153 663

108 980

1 124 139

1 800 839

Namibia

2 141 947

91 544

1 615 037

1 793 156

+9 cRDb bank

-6 First National bank of Namibia

95 125 +30 banco sol

Angola

2 103 685

95 929

775 720

1 864 894

Egypt

2 086 852

78 186

861 368

1 268 382

+2 Housing and Development bank

97 113 +16 cFc stanbic bank

Kenya

2 056 029

184 553

1 182 825

1 483 957

- North Africa bank

Libya

2 035 550

11 805

145 908

1 120 920

- Wema bank

Nigeria

2 034 866

77 025

606 586

1 339 068

100 103

+3 banque Al baraka d'Algérie

Algeria

2 001 110

98 862

798 034

1 598 042

101 109

+8 National microfinance bank

Tanzania

2 000 913

270 349

984 718

1 575 401

Namibia

1 964 861

126 620

1 680 467

1 256 310

102

103 111

-6 bank Windhoek +8 banco de Negócios Internacional

104 124 +20 oragroup sA 105 105

1 882 278

60 750

878 550

1 364 367

1 852 852

126 592

1 119 630

1 164 003

Angola

1 827 232

87 334

642 575

1 227 920

106 128 +22 Ecobank Ghana*

Ghana

1 818 991

230 195

741 013

1 307 760

107 110

Botswana

1 799 000

162 460

1 203 000

1 391 000

108 106

- Banco Millennium Angola*

Angola Togo

+3 Abc Holdings -2 First National bank of botswana

109 129 +20 Gulf bank Algeria 110 108

-2 Investec Bank South Africa*

Botswana

1 780 310

101 074

1 167 966

1 456 618

Algeria

1 770 383

134 029

1 035 009

1 167 564

South Africa

1 765 533

5 538

111 115

+4 soc. Gén. de banques en côte d’Ivoire

Côte d'Ivoire

1 739 518

122 041

857 719

1 465 109

112 114

+2 union bancaire pour le comm. et l’Ind.

Tunisia

1 720 577

88 779

1 342 149

1 203 104

113 127 +14 commercial bank of Africa

Kenya

1 662 922

72 588

781 813

1 192 712

114 104

Congo

1 658 545

102 401

1 061 636

1 482 437

Kenya

1 610 138

100 178

1 046 544

1 106 488

Angola

1 578 652

141 988

546 621

690 350

Algeria

1 573 345

61 057

356 106

1 279 505

115 112 116

-10 bGFIbank congo -3 Investment & mortgages bank - Banco Caixa Geral Totta de Angola*

117 116

-1 HSBC Algeria*

118 117

-1 Diamond Trust Bank Kenya*

Kenya

1 568 643

142 671

1 015 650

1 238 773

119 133 +14 cbZ bank

Zimbabwe

1 558 667

95 268

1 028 119

1 332 564

120 184 +64 standard bank de Angola

Angola

1 517 589

28 987

348 521

1 307 898

2013 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2012 RESULTS

the afric a report

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finance special

●

s e p t e m b e r 2 0 14

top 200 banks

DIFF.

RANK ’13

RANKINGs 2014 121-160 RANK ’14

bANK NAme

121 121

- Misr Iran Development Bank*

122 130

+8 cbAo Groupe Attijariwafa bank

123

62%

- Standard Bank Mozambique*

124 118

-6 Ghana commercial bank

125 119

-6 bank of Khartoum

126 144 +18 Natixis Algérie 127 131 128 126

+4 NIc bank -2 Egyptian Gulf Bank*

129 138

+9 Investec Bank Mauritius*

130 136

+6 société Générale cameroun (ex-sGbc)

131 122

-9 barclays bank of botswana

couNtRy

Ghana commercial bank (#124) announced in march that its net profit had increased by 62% to ¢229.20m ($67.62m) for the 12 months through to December 2013

totAl Assets

Net INteRest INcome

loANs

DeposIts

Egypt

1 490 520

32 262

603 997

985 685

Senegal

1 431 251

115 597

1 275 373

1 051 192

Mozambique

1 423 757

78 838

501 877

1 180 335

Ghana

1 418 158

243 220

401 768

1 099 984

Sudan

1 412 255

79 633

712 721

1 084 545

Algeria

1 404 443

89 200

737 485

921 813

Kenya

1 378 905

82 782

950 989

1 042 925

Egypt

1 372 011

Mauritius

1 371 598

40 977

772 245

666 854

Cameroon

1 356 993

90 136

877 853

1 044 139

Botswana

1 319 868

102 155

826 335

1 045 396

132 142 +10 société Générale de banques au sénégal Senegal

1 295 315

99 107

825 732

952 905

133 137

1 286 615

99 634

671 334

1 036 300

1 286 274

83 096

748 463

808 869

+4 banq. Int. cam. pour l’epargne et le crédit Cameroon

134 147 +13 Ecobank Côte d'Ivoire*

Côte d'Ivoire

135 158 +23 banque Atlantique – côte d'Ivoire

Côte d'Ivoire

1 275 044

61 393

566 183

851 064

136 140

Uganda

1 264 223

96 625

551 866

697 155

+4 stanbic bank uganda

137 132

-5 Standard Chartered Bank Ghana*

Ghana

1 252 312

88 916

502 666

892 710

138 143

+5 Zambia National commercial bank

Zambia

1 252 093

99 382

536 558

990 417

139 145

+6 Bank of Africa – Bénin*

Benin

1 241 915

65 962

449 128

805 184

Mauritius

1 241 457

5 967

488 130

936 931

141 123

140

-18 Faisal Islamic bank sudan

- bank of baroda – mauritius

Sudan

1 220 620

46 772

814 934

1 051 237

142 120

-22 Piraeus Bank*

Egypt

1 218 354

143 139

-4 Afriland First Bank*

Cameroon

1 152 630

50 137

483 254

929 945

144 141

-3 Deutsche Bank Mauritius*

Mauritius

1 137 646

3 143

508 192

810 405

145 135 146 148

-10 standard chartered bank botswana +2 Arab banking corporation – egypt

147 167 +20 National bank of Kenya 148

149 152 150 146

- Diamond bank benin +3 bIAo côte d'Ivoire

1 129 931

113 438

708 249

888 901

1 054 699

19 251

248 122

856 058

Kenya

1 054 210

64 218

450 664

888 338

Benin

1 051 485

47 671

479 177

721 447

Côte d'Ivoire

1 036 189

72 465

641 395

852 212

Ghana

1 035 209

107 252

371 355

761 799

Ethiopia

1 019 744

68 522

447 370

818 559

Mauritius

1 007 528

23 200

447 127

869 001

153 176 +23 société Ivoirienne de banque

Côte d'Ivoire

1 000 478

69 566

620 248

760 383

154 149

Zambia

982 430

72 737

499 165

766 334

Mauritius

981 086

25 556

698 658

660 588

151 153

-4 Barclays Bank of Ghana*

Botswana Egypt

+2 Dashen bank

152 175 +23 AfrAsia bank

155 134

-5 standard chartered bank Zambia -21 sbI mauritius

156 151

-5 National bank of commerce

Tanzania

968 420

97 065

417 173

794 449

157 150

-7 Stanbic Bank Zambia*

Zambia

956 823

116 595

515 030

736 790

158 173 +15 Awash International bank

Ethiopia

918 362

45 970

388 968

647 835

159 155

Uganda

912 205

155 242

471 620

630 355

909 784

65 639

545 116

567 250

160 162

-4 Standard Chartered Bank Uganda* +2 coris bank International

Burkina Faso

2013 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2012 RESULTS

the afric a report

●

finance special

●

s e p t e m b e r 2 0 14

top 200 banks

161 156 162 157 163 171 164 164

DIFF.

Rank ’13

RankInGs 2014 161-200 Rank ’14

an nb

fi sas

bank name

-5 banque de Développement du mali -5 Banco Regional do Keve* +8 banque nationale d’Investissement - Ecobank Burkina*

165 159

-6 Union National Bank Egypt*

166 172

+6 société Générale south africa

there’s no way that those big banks can provide the service that we would, because they just don’t have the staff” Roland sassoon, ceo of sasfin bank (#196)

countRy

Mali

total assets

net InteRest Income

902 611

loans

53 080

DeposIts

372 350

657 897

Angola

895 529

19 360

304 988

737 069

Côte d'Ivoire

878 637

51 136

460 290

625 110

Burkina Faso

871 689

56 371

543 264

611 458

Egypt

866 538

South Africa

863 332

8 875

726 456

805 595

167 170

+3 bIcIcI

Côte d'Ivoire

861 771

65 637

583 340

723 007

168 169

+1 soc. commerciale de banque cameroun

Cameroon

861 295

67 729

502 916

706 081

855 482

23 845

303 771

254 684

169 154

-15 Hongkong and Shanghai Banking Corp.* Mauritius

170 165

-5 bIcIG

Gabon

855 380

59 357

427 646

516 084

171 166

-5 Banco Comercial do Atlântico*

Cape Verde

841 399

25 737

486 465

699 854

172 174

+2 Ecobank Benin*

Benin

830 276

50 226

468 702

583 453

173 178

+5 Ecobank Senegal*

Senegal

825 691

51 620

444 335

570 603

Togo

750 932

43 569

463 004

434 283

174

175 182 176 161 177

178 177

- orabank togo +7 Rawbank -15 mercantile bank - Bank of Africa Burkina Faso* -1 Fidelity Bank Ghana*

179 189 +10 exim bank tanzania 180 168 181 183

-12 agricultural Development bank +2 bIcIs

182 199 +17 soc. Gén. de banques en Guinée eq.

DRC

725 360

63 350

289 280

556 040

South Africa

720 359

31 646

483 957

480 595

Burkina Faso

699 741

41 356

385 146

526 188

Ghana

698 282

72 749

346 721

566 202

Tanzania

698 052

46 043

330 075

559 013

Ghana

678 221

117 110

406 284

443 753

Senegal

675 239

59 615

500 046

538 738

Equatorial Guinea

668 933

35 135

115 324

613 037

183 188

+5 cal bank

Ghana

651 958

89 930

426 595

349 785

184 193

+9 Bank of Africa – Madagascar*

Madagascar

649 344

49 090

245 618

532 469

185 160

-25 bGFIbank Guinée equatoriale

186

- banque Internationale pour le mali

187 197 +10 la congolaise de banque 188 192 189

+4 Ecobank Mali* - caixa económica de cabo Verde

Equatorial Guinea

649 025

50 646

245 813

584 158

Mali

648 273

32 409

335 889

525 036

Congo

632 336

38 930

285 390

558 619

Mali

630 871

50 147

328 693

358 200

Cape Verde

630 205

24 537

450 770

506 205

190

- bank of africa – mali

Mali

627 500

40 369

365 346

432 339

191

- crédit du congo

Congo

620 487

38 190

165 423

538 479

Cameroon

611 001

44 854

423 980

469 810

192 195

+3 Ecobank Cameroon*

193 190

-3 BancABC Botswana*

Botswana

607 462

36 308

432 085

539 962

194 191

-3 ABC Bank Algeria*

Algeria

606 185

40 889

256 852

317 943

595 396

32 857

334 130

342 160

195

- société Générale burkina Faso (ex-sGbb) Burkina Faso

196 185

-11 sasfin bank

South Africa

595 266

20 964

315 039

205 741

197 181

-16 banque des mascareignes

Mauritius

593 176

19 229

484 573

375 648

198

- banque nat. de Développement agricole Mali

589 760

48 736

341 885

373 008

199

- Ecobank Togo*

Togo

584 176

39 503

289 919

425 727

200

- banque commerciale du congo

DRC

581 536

82 438

232 805

454 810

2013 RESULTS IN THOUSANDS OF US DOLLARS; *IN ITALICS 2012 RESULTS

the afric a report

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finance special

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s e p t e m b e r 2 0 14

top 200 banks

east africa technology the key to retail survival In a bid to win clients, lenders are aiming for a supermarket banking model, while also touting lower charges and faster processing times for online transactions

resh technological platforms continue to drive East Africa’s financial services sector. Lenders in Kenya – mainly Equity Bank (#68) and rivals Kenya Commercial Bank (KCB, #60), Co-operative Bank (#78), Barclays Bank of Kenya (#85) and Standard Chartered Bank Kenya (#90) – are in a fierce battle for retail and corporate customers, a war that is being fought through new models such as agency and mobile banking. KCB, Equity and Co-operative, all listed on the Nairobi Securities Exchange (NSE), have rolled out agencies across the country where clients can deposit and withdraw money without going to ATMs and branches. This has seen them slow down on opening new branches, effectively reducing operational costs. The agencies, usually manned by a single cashier, are licensed by the Central Bank of Kenya through the respective bank. Such an integrated platform of retail outlets and

country

profits ($m)

bank name

total assets ($bn)

top 10 east african banks rank in top 200

51 KCB Group kenya 56 Arab Bank for Ec. Dev. Africa sudan

4.4 163 3.9 0.128

60 Kenya Commercial Bank

kenya

3.7

142

68 Equity Bank Group

kenya

3.2

151

78 Co-operative Bank of Kenya

kenya

2.6

104

85 Barclays Bank of Kenya

kenya

2.4

86 Equity Bank Kenya*

Kenya

2.3

90 Standard Chartered Kenya*

Kenya

2.3

2.2 2.2

14 52

91 Commercial Bank of Eritrea* Eritrea 92 CRDB Bank tanzania

2013 results From top 200 Banks ranking; * In ItalIcs 2012 rEsults

mobile banking is the new frontier for growth, analysts and bankers say – a model that is being replicated across the East African region. A look at the strategic plans and recent pronouncements by the top five Kenyan banks show that the lenders are increasingly pursuing a supermarket banking model that will offer a range of financial services including bancassurance, mortgages, forex trading, diaspora banking and payments processing, with KCB and some others pursuing Islamic banking. “Medium-sized businesses provide better growth opportunities going forward, particularly those in the import trade and others supplying multinationals. This will eventually translate into strong growth potential for credit uptake and fee-related incomes. Barclays Bank, however, will struggle to catch up with peers in terms of innovation and winning back old clients,” says Kenneth Owera, an investment analyst at Stanlib Uganda, an asset management firm.

The country’s banking sector has been on a growth spree over the past few years. Data from the Central Bank of Kenya shows that the customer deposits base increased by 13.3% from $20.1bn in 2012 to $22.8bn in 2013. Loans to customers rose from $15.3bn in 2012 to $18bn in 2013, an increase of 18.2%. Profit before tax increased from $1.27bn in 2012 to $1.46bn in 2013, a jump of 15.8%. “We have begun to reap the benefits of our investment in information technology, agency banking, merchant business and paymentprocessing,” saysJamesMwangi, Equity Bank’s chief executive officer. regional expansion The big banks are also making a killing from a surging demand for credit across the East African Community. A survey by the Central Bank of Kenya in October last year shows that the large banks are charging borrowers up to 2.45 percentage points more than their smaller rivals. They are also paying customers lower

profile

commercial bank of africa cBa’s m-shwari pulls in the punters Kenya’s mid-tier lender commercial bank of africa (cba, #113) has over the past few months overtaken big networked lenders to emerge as the country’s second-largest retail bank, riding on a new product that allows customers to borrow and save using their

mobile phones. the country has seen a fast uptake of m-shwari, a product jointly sponsored by cba and mobile network operator safaricom – which owns another phenomenal financial product, m-pesa. the latest data by the central bank of Kenya shows

m-shwari has boosted the number of deposit accounts in Kenya to more than 21 million, leaving cba second only to equity bank (#68) among Kenya’s biggest retail banks. the product, data shows, highlights the growing shift towards digital banking the afric a report

●

in the Kenyan banking sector. the adoption of the technology has seen savings in the sector grow to at least $21.9bn. cba is associated with the family of Kenya’s president Uhuru Kenyatta, which is said to have a substantial stake in the company. ● g. n. finance special

●

s e p t e m b e r 2 0 14

top 200 banks

the afric a report

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finance special

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s e p t e m b e r 2 0 14

edward echewalu for tar

rates for deposits, widening the interest spread that is the biggest driver of profits. For the Kenyan top lenders, regional expansion is seen as a key thematic area in the coming years. They hope to reduce over-reliance on the Kenyan market, which is increasingly becoming saturated by new entrants. The five listed banks with significant cross-border operations – KCB, Equity, Investment & Mortgages Bank (#115), Diamond Trust Bank (#118) and NIC Bank (#127) – returned a combined profit before tax of $70m compared to a loss of $152m in 2012. “But even after successfully containing the cost base and making profits, there are still a couple of concerns regarding their regional operbanking’s brave new world means ations; and so the question is whether less time waiting in queues – they will be able to sustain this profitaband lower overheads for banks ility going forward. First is the issue of non-performing loans, which continues to record notable growth. This serves to nels, which offer lower banking charges show that there are still potential risks than ordinary services, alongside faster arising from non-performing assets,” says processing times of less than 10 minutes George Bodo, head of banking research for paying bills and checking balances. at Ecobank Group. “The retail market has come under In Uganda, with growth opportunities immense pressure from mobile money amongsmallnicheclientssteadilydiminservices and this has depleted margins ishing, top local lenders have shifted straearned by banks, but it still bears untegic focus towards deepening presence tapped potential,” says Patrick Mweheire, in retail and small and medium-sized executive director at Stanbic Bank enterprise (SME) segments, resulting in Uganda. The country has roughly four more investments in improved transacmillion bank accounts for a population tion platforms and increasing battles for of 35 million people. medium-sized businesses with big ambitions. While the top tanzania has the highest number three lenders by assets – Stanof banks in the region (53) for bic Bank Uganda (#136), the lowest inclusion rate (17%) Standard Chartered Bank Uganda (#159) and Barclays In the corporate segment, Mweheire – relied significantly on a small collecsays, “the SME segment offers more tion of government and private sector clients to drive growth in the past, rising opportunities for lending and growing competition triggered by new players, fee incomes, but exploiting this sector particularly KCB and United Bank for requires restructuring their borrowing needs, which appear very imbalanced.” Africa (#19), has rocked their comfort In Tanzania, while five banks control zones, leading to feverish pursuit of new growth areas. more than half of the banking sector, more are joining in as the central bank, mobile banking potential the Bank of Tanzania (BoT), continues For instance, Stanbic Uganda has inveslicensing lenders to operate. The country ted significantly in its mobile and internet now has 53 banks, compared to Kenya’s banking channels since 2012. It has done 43. Despite this, Tanzania’s level of finso in an effort to expand its retail client ancial inclusion is still less than 20% of the adult population. BoT figures show base, cut long queues in banking halls that in 2006 the proportion stood at and stimulate further growth in fee incomes following a sizeable dip in market 9%, rising to 12% in 2009 and in 2012 share – from 35% in 2012 to around 29% to 17%, or around 3.4 million people. in mid-2013, according to industry data. The rate jumps to 22% formal inclusion Standard Charteredis similarly consolwhen savings and credit co-operatives idating its electronic transaction chan(Saccos) are factored in. Tanzania has

a target to reach at least 50% formal financial inclusion by 2016. An economy that has only a handful of large banks with little competition fosters poor service delivery, which was the case when all Tanzanian banks were state-owned, says the BoT deputy governor, Lila Mkila. Individuals and small and micro enterprises are then at a particular disadvantage as big banks target the higher end of the market. a need for consolidation A 2013 study by Serengeti Advisers says that between 2006 and 2009 CRDB Bank (#92), National Microfinance Bank (NMB, #101) and National Bank of Commerce (NBC, #156) together commanded 35-44% of banking business in the country, and the top 10 banks held 80% of total banking assets in 2012. “Tanzania could be better served with 20-25 large and medium-sized banks competing aggressively together, rather than 53 banks of which more than 20 are small and cannot compete with the largest 10 banks that dominate the market,” banking expert Manzi Rwegasira wrote in the report. Serengeti listed the Lebanese owned FBME Bank in first place with 20% of the market share. Management of FBME has since been taken over by the BoT, which in July 2014 was looking for buyers for its branches in Tanzania. In its latest Financial Stability Report, theBoTsinglesoutnon-performingloans among the biggest risks faced by banks in the country, but the operational threat has been receding. According to the regulator, non-performing loans stood at 6.5% of total loans in December 2013, down from 8.1% the previous year. ● gilbert nganga

top 200 banks

west africa

Nigeria’s banks are well managed and capitalised, but financial governance issues remain. Meanwhile, Ivorian banks are benefiting from an infrastructure boom and a return to political stability

international support Bodo says that there are two things that remain to be done to strengthen the Nigerian banking sector: “The concentration risks are very high, in fact the top five banks control about 50% of the industry.” The central bank identified the eight systemicallyimportantbanksearlierthisyear and told them that they have to meet a higher capital standard than the rests of

14 First Bank Of Nigeria 15 Ecobank Transnational Inc.

nigeria Togo

23.8 22.5

434 148

17 Zenith International Bank*

Nigeria

16.6

643

19 United Bank For Africa Group

nigeria

16.2

287

20 Zenith Bank Nigeria*

Nigeria

15.6

612

21 Guaranty Trust Bank

nigeria

12.9

554

23 Access Bank Group

nigeria

11.3

231

26 Diamond Bank

nigeria

9.3

175

27 Ecobank Nigeria 33 Skye Bank

nigeria nigeria

9.2 6.9

33 98

bank name

country

2013 resuLTs From ToP 200 banks ranking – * IN ItalIcs 2012 results

the banks. “The second thing is that the banks themselves really need to de-emphasise their current lending model,” Bodo explains. He says that almost 80% of loans are destined for the wholesale market – medium and large corporates. The government plans to sell the three banks it nationalised and renamed – Mainstreet Bank (Afribank), Keystone Bank (Bank PHB) and Enterprise Bank (Spring Bank) – this year. Keystone Bank announced that it is selling off its insurance business and loss-making operations in Liberia, Sierra Leone and Uganda before it will be sold. FirstBank of Nigeria (#14) overtook Ecobank Transnational (#15) as West Africa’s largest bank by assets in this year’s ranking. That run of good perform-

ance met trouble in the first quarter of 2014 when FirstBank reported a year-onyear 21.1% drop in first-quarter profits before tax to N28.1bn. New reserve requirements on public sector deposits limit the bank's lending ability. On the other hand, total assets rose by 11.6% over the same period. The international markets have strongly supported Nigeria’s banks. FirstBank launched a $450m eurobond in July, Diamond Bank (#26) issued its first eurobond in May and Zenith Bank (#20) raised $500m in April. Governor Godwin Emefiele took over from sacked governor Lamido Sanusi in June and has since said that the central bank plans to lower interest rates from the current level of 12% ● ● ●

West AfricA's biggest bAnks And their deposits FIRST BANK OF NIGERIA (Nigeria)

18 013 848

ECOBANK TRANSNATIONAL INC. (Togo)

16 489 904

ZENITH INTERNATIONAL BANK (Nigeria)

12 327 869

UNITED BANK FOR AFRICA GROUP (Nigeria)

13 291 269

ZENITH BANK NIGERIA (Nigeria)

11 514 831

GUARANTY TRUST BANK (Nigeria) ACCESS BANK GROUP (Nigeria) DIAMOND BANK (Nigeria) ECOBANK NIGERIA (Nigeria) SKYE BANK (Nigeria)

8 872 617 8 188 225

Total

7 417 171 7 001 000

108 180 183 US $

5 063 449 the afric a report

●

finance special

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s e p t e m b e r 2 0 14

source: Jeune afrique top 200 banks

profits ($m)

economic engines back on course

here was much movement in the top ranks of West Africa’s banks last year, with Nigeria’s banking sector having marked a strong recovery from its 2009 troubles. Wema Bank (#99) illustrates the changes in the industry, moving from unranked last year to 99th place in this year’s chart. The Nigerian regional bank had 89% non-performing loans in 2009, which it reduced to 2.5% in the first half of 2014. Managing Director Segun Oloketuyi left Skype Bank in 2009 to take over at Wema, raising new capital and strengthening management practices. It reported a first-half net profit of N1.4bn ($8.6m) and is applying for a national banking license so that it can operate throughout Nigeria. GeorgeBodo,headofbankingresearch at Ecobank, explains that the Nigerian banking sector is now on firmer ground: “Performance is much better on three fronts. One is from a capital standpoint. They are much more well capitalised and strong ... From a credit-process perspective, the performance is excellent because we now have very clear and laid-down credit processes and that is properly integrated with corporate governance, something that was missing before the crisis. The last thing is profitability. We are seeing a return on equity of about 18%.”

total assets ($bn)

top 10 west african banks rank in top 200

top 200 banks

quarter of 2014, when its year-on-year net over the next five years. After profit rose to 71.8m ($21m), thanks in Sanusi’s high-profile tenure, Emefiele part to a 45.4% rise in net interest income. has sought to strike a more reserved The bank’s share price rose even more position. Nonetheless, in his first policy rapidly, recording 111% growth between statements, he said the bank cannot March 2013 and February 2014. On the solely focus on monetary policy and negative side, non-performing loans for needed to address unemployment and 2013 rose to 5.6% from about 1% due to other factors. The CBN’s interventions the takeover in 2012 of The Trust Bank. have integrated the banking sector further into the economy – via financing the Ghana’s worst performer is the Agpower, energy and agriculture sectors. riculture Development Bank (#180), which launched a rebranding operation The post-2009 consolidation process led to a reduction of international expansion programmes, after Sanusi's high-profile tenure, as many Nigerian banks had emefiele has sought to rapidly launched operations strike a more reserved position throughout West Africa. There are signs that appetites for inin January. The state-owned bank estimternational growth have returned. In ates that it provides 35% of Ghana's agriApril, GTBank (#14) announced plans cultural funding and plans to list on the to open a subsidiary in either Angola, Ghana Stock Exchange in 2015 to source Mozambique or Tanzania, in addition moreprivatecapital.PwC’s2013surveyof to opening an additional 25 branches Ghanaian banking revealed the agriculin Nigeria in 2014. tural bank was the sixteenth most illiquid of the 24 surveyed. The size of the stake mixed fortunes In Ghana, government-imposed restricfor sale has not yet been announced. tions on foreign exchange transactions Ecobank’s Bodo says that Ghana’s since early 2014 are unlikely to hurt banks have been slowed by their weak banks’ bottom lines but are likely to sour take-up of technology and the high cost relations with customers as banks cancel of some products. Mortgages can have accounts. The best Ghanaian performer interest rates as high as 25% in cedi terms in this year’s ranking is Ecobank Ghana and banks have not robustly stress-tested (#106), which rose 22 places. Its strong borrowers, which could prove problematic as Ghana’s economic performance performance continued into the first

●●●

continues to weaken. Meanwhile, Côte d’Ivoire’s booming economy after the 2010 post-electoral crisis has benefited the country’s financial sector, with Atlantique Business International (ABI, #65), its Ivorian subsidiary Banque Atlantique (#135) and Société Ivoirienne deBanque(#156) amongst the strongest West African risers in The Africa Report’s rankings. ABI is owned by Morocco’s Banque Centrale Populaire (#8), and its Ivorian operation is involved in financing priority infrastructure projects. In July, Banque Atlantique Côte d’Ivoire provided a €100m loan to the government to construct a second container terminal at the Abidjan port. It also part financed upgrades to a road linking Yamoussoukro to the north. ABI’s Senegal-based subsidiary has secured a series of lucrative deals with the government there. It loaned the Dakar government 150bn CFA francs ($300m) in December 2013 and won the rights to help it raise an additional $200m from international markets. Togo’s Oragroup (#104) is also growing fast. In September 2013, Oragroup took over the Banque Régionale de Solidarité, which operates in the countries of the Union Economique et Monétaire Ouest-Africaine. A month later, the Fonds Gabonais d’Investissements Stratégiques investment fund bought a 2.66% stake marshall Van Valen in the group. ●

profile

ecobank pan-african giant extends its reach Togo-headquarTered ecobank transnational (#15), has attempted to draw a line under what has been a turbulent year. In early 2014, deputy group chief executive albert essien led a group of senior executives in calling for the resignation of chief executive Thierry Tanoh following a series of scandals and a high-profile probe by the Nigerian Securities and exchange Commission into bank result manipulation. Tanoh stepped down and essien took over in March.

essien, who began his career at ghana’s National Investment Bank in 1986, joined ecobank’s ghanaian division in 1990. he enjoyed a rapid rise, eventually becoming managing director in 2002 before moving to the group's headquarters. despite the internal power struggles, the bank has continued its expansion. It launched new operations in Mozambique in June after buying out Banco ProCredit. ecobank also announced plans to open a bank in angola before the end of this year.

In July, the bank reported a 27% increase in first-half, pre-tax profits to $255m and a 7% rise in net lending in the second quarter. ecobank ghana was a star performer, with a 91.2% rise in 2014 first-half profits to $45.5m. ecobank has focused on reducing costs and its cost-to-income ratio dropped to 68.1% in the first half of 2014 from 70.97% in 2013. Meanwhile, South africa's nedbank (#5) looks set to take a 20% share in ecobank as part of a deal to convert The afrIC a rePorT

●

erIC LarraYadIeu for Ja

100

aLBerT eSSIeN Took over aS eCoBaNk Ceo IN MarCh

a $285m loan into equity. If approved, the agreement, which is part of a strategic alliance between Nedbank and ecobank, would give the Lomé-based lender a capital adequacy ratio of 18.7% by the close of 2014. ● Honoré banda

fINaNCe SPeCIaL

●

S e P T e M B e r 2 0 14

The bigger picture We have come a long way since 1838. Today, the MCB Group is a leader in financial services in Africa. At the heart of Mauritius, a fast-growing financial hub ideally placed between three continents, we are a trustworthy partner that will help you go places. Together, let’s look at the bigger picture. • Investment Banking • Corporate Finance & Advisory • Consulting Contact us: financingsolutions@mcb.mu

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top 200 banks

BIG BANKS ExPANd BEyONd ThEIR BORdERS Gabon’s BGFI and Cameroon’s Afriland have launched operations in West and Central Africa, but they have yet to prove they can succeed in tougher regulatory environments and amidst stronger competition

bank namE

CountRy

pRoFIts ($m)

top 10 Central african banks totaL assEts ($bn)

CEntRaL aFRICa

Rank In top 200

40 BGFIBank Holding Corp. 58 Afriland First Group

Gabon Cameroon

6.1 3.7

65 23

74 BGFIBank Gabon

Gabon

2.8

93 CCEI Bank GE

Eq. Guinea

2.2

Congo

1.7

114 BGFIBank Congo 130 Société Générale Cameroun

Cameroon

1.4

133 BICEC

Cameroon

1.3

143 Afriland First Bank*

Cameroon

1.2

168 Soc. Comm. de Banque Cam. Cameroon 170 BICIG Gabon

0.9 0.9

17 8

2013 RESULTS FROM TOP 200 BANKS RANKING; * In ItalICs 2012 results

the development of improved riskmanagement systems. BGFI has not ignored its home market, and it opened five new branches in 2013. As a result, it controls 47% of the markets for loans and deposits. BGFIBank Gabon (#74) increased its loans and deposits by 29% and 15%, respectively, in 2013. Besides geographical diversification, BGFI also bought Gabon-based insurer Assinco in 2012.

nicolas eyidi for j.a.

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nlyoneCentralAfricanbank has broken into The Africa Report’s top 50 banks, Gabon-based BGFIBank Holding Corporation (#40), which aims to be a continental player. It is unlikely to meet its target of operating in 15 countries by 2015 – it is based in nine at the moment – but the bank it opened in Côte d’Ivoire in 2012 is already making a profit and it has a partnership with insurer OGAR to expand insurance product coverage in the countries where the bank is active. Expansion has temporarily weakened the bank and last year BGFIBank group’s balance sheet dropped by 0.1%. The bank’s performance was strengthened by activities in Côte d’Ivoire and Cameroon and weakened

in yaounde, cameroon, afriland first banK hQ proVes a funKy facade can be an asset too

by its activities in Equatorial Guinea and the DRC. In June 2013, the bank sacked its leadership team in Benin and had to recapitalise its operations after it discovered problems in risk management. In June of this year, BGFIBank president Henri-Claude Oyima said that the next phase of the bank’s expansion would target anglophone countries and acquisitions. Senegal, however, could be the next country to host a BGFIBank subsidiary. Oyima announced the implementation of the ‘Excellence 2020’ plan this year, which also includes the rolling out of new products and

aFRILanD GoEs WEst BGFI’s rival for dominance in Central Africa is Cameroon’s Afriland First Group (#58), which is also planning on regional expansion in order to grow its balance sheet. Both banks began their regional expansions in the early 2000s, but Afriland’s business focus tends to be on small and medium-sized enterprises. Afriland completed its acquisition of loss-making Access Bank Côte d’Ivoire in December 2013. Access Bank has sought to sell its non-essential holdings outside of its home in Nigeria and a few other markets. Paul Fokam, Afriland’s founder, told reporters in Abidjan that the bank would focus its activities on Ivorian agriculture. Not all of its attempts to set up new operations have been successful. In March 2013, Afriland lost out on the bidding for a 55% stake in the Banque Togolaise pour le Commerce et l’Industrie after the government rejected its bid. At home, Afriland spent several months defending itself in a case related to the management of government funds. The bank reimbursed the missing funds and the supreme court dismissed the case in May. Afriland has also not been as quick as its counterparts in publishing annual ● ● ●

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top 200 banks

vices and received a big boost in May results and had not issued its ●●● with a $15m loan from the World Bank’s 2013 financial reports by the time The private sector arm, the International Africa Report went to press. Finance Corporation. Rawbank plans to Afriland’s most profitable operause the money to finance loans, espetion is in Equatorial Guinea, where it cially for women and small businesses is the majority shareholder of CCEI (see TAR 62, July 2014). Bank GE (#93). CCEI Bank climbed the most places last year, 14, of any bank in the region. In there are more mobile banking announcing plans for the accounts than traditional ones opening of a bank in Benin, in cameroon, Gabon and the Drc CCEI Bank GE director general Joseph Célestin Tinjou said in Ecobank’s Bodo warns, however, February that the financial institution that the sector is poorly regulated in controls 70% of business in its home the DRC. “I was in the DRC last year. market. Tinjou says the bank will focus on attracting the business of small The regulatory environment is really companies in Benin. not up to the call. Banks do not report on IFRS. There are no clear guidelines George Bodo, the head of bank reon the treatment of non-performing search at Ecobank, is sceptical about the international expansion of Central Africa’s banks. “I do not think it profile will be successful. First, their cost of funds are generally high.” He also points to issues of capital controls in some Central African markets and of customer dynamics, especially in the English-speaking countries.

loans. There are still a lot of significant loopholes that we do not see in other markets,” Bodo says. Another rapid riser on our Top 200 banks list was the Brazzaville-based La Conglaise de Banque (#187), which also rose 10 places this year. The bank, in which Morocco’s Banque Marocaine du Commerce Extérieur (#10) holds a 25% shareholding, trails BGFIBank Congo (#114) in size and has concentrated on strengthening its bancassurance model – one that combines traditional bank offerings and insurance products – in order to increase its market share. In its 2013 results, BMCEBank reported that La Congolaise de Banque’s deposits and loans rose year on year by 8% and 5%, respectively. ● Marshall Van Valen

société générale Cameroun

grab your handsets Bodo explains further that “you do not see strength in the regulatory policy environment. It is not as strong as other markets. For instance, in Central Africa most of the banking aspects are still based on Basel I. Some markets are moving to Basel III. In Central Africa, there is no IFRS [International Financial Reporting Standards] adoption.” In Central Africa, telecoms companies and their mobile banking platforms have been gaining on the traditional banks. While mobile banking has been slower to take off in markets like Chad and the Republic of Congo, the Alliance for Financial Inclusion reports that that there are more mobile banking accounts than traditional accounts in Cameroon, Gabon and the DRC. While telecoms companies have been the most active in supporting mobile banking, the Banque Internationale pour le Commerce et l’Industrie du Gabon (#170) introduced BICIG Mobile in 2012. It already has 70,000 clients, two thirds of them without traditional bank accounts, and the bank has a medium-term goal of reaching 200,000 BICIG Mobile accounts. Rawbank (#175) has a market share of about 20% of the DRC’s banking ser-

credit leader is firing on all cylinders the bank, #130 in our rankinGs, claims a 23% share of the cameroonian credit market, making it the leader in the field. in october 2013, the subsidiary of french bank société Générale opened its 29th branch in the country, changed its name from sGbc to Société Générale Cameroun (SGC) and celebrated 50 years of operations. it opened offices in edéa, foumban and kribi in 2013 and plans to expand to more than 40 branches by 2016. sGc reported a net profit of 12.4m cfa francs ($25.5m) for 2013. in late July, the cameroonian government chose sGc as one of the seven banks to participate in an

emergency action plan that covers several sectors, including health, roads and electricity provision. the banks will evaluate local companies to participate in the projects as well as identify critical projects to develop. in 2012, sGc joined a group of local and international banks in financing the construction of a gas-fired power plant for the port city of kribi. in order to reach the unbanked population, in august 2013 it launched a programme of mobile branches to serve clients who live outside of the cities with sGc branches. the mobile branches are kitted-out vehicles with the information technology tools that allow clients the afric a report

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to perform the transactions that would normally be done in bricks-and-mortar offices. in 2012, the bank also launched monifone, a multioperator mobile-payment service to rival the likes of orange money and mtn’s mobile money, which were introduced by telecoms firms. seeking to learn from its competitors, the bank announced in July that it had hired united bank of africa’s Georges Wega as its assistant director general. Wega was head of the nigerian bank’s operations in cameroon. before taking up his new post, Wega warned that bad loans make up about a quarter of the country’s loan book. he brings experience from General electric and barclays. ● M. V. V.

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top 200 banks

southern africa weatherIng the storm The financial health of the South African consumer is under increased scrutiny as banks worry about debt defaults, slowing growth and revenue prospects

t has been a torrid year for South Africa’s African Bank (#41), which has built its fortunes on issuing unsecured loans to mainly low-income consumers. In May, it wrote off R8bn ($750m) in bad loans, triggering a credit rating downgrade to junk by Moody’s and speculation that a second rights issue, at a steep discount, will be needed to rescue the bank. The group raised R5.2bn in equity funding in December following a R9.1bn bad debt write-off for the year ended September 2013. A small bank in the South African sector with a relatively unique business model, African Bank’s troubles are not a reflection of the industry as a whole in Southern Africa. Angola and Mozambique, both buoyed by inflows of capital linked to the oil and gas sector, remain solid – though Luanda has been shaken

161.3 1 637 96.7 1 001

3 Barclays Africa Group

s. africa

91.4 1 226

4 FirstRand Group

s. africa

82.8 1 493

5 Nedbank Group

s. africa

71.4

853

12 First National Bank S. Africa*

S. Africa

718

24 Banco Angolano de Invest.

angola

10.6

123

28 Banco de Fomento Angola

angola

8.9

244

6.9 6.3

168 120

2013 resULts From toP 200 BanKs ranKIng; * In ItAlIcS 2012 reSultS

strikes could pose a risk for the banking sector, as it could reduce the ability of companies and workers to service their debts. Protracted strikes could also lead to job losses. The banking sector’s fortunes in both the country and the region are closelytied to that of the South African economy. In June, Fitch downgraded the outlook on the credit ratings of the country’s four biggest banks to negative from stable, following a similar downgrade of the country’s sovereign rating.

85 620 500 67 108 289

BARCLAYS AFRICA GROUP (ex-ABSA) (South Africa)

57 628 082 57 022 420

FIRSTRAND BANKING GROUP (South Africa)

55 156 214

NEDBANK GROUP (South Africa)

4 436 287

BANCO BIC (Angola)

2 578 540

BANCO ANGOLANO DE INVESTIMENTOS (Angola)

2 511 134 1 567 281

FIRST NATIONAL BANK SOUTH AFRICA (South Africa) N/A

SOUTHERN AFRICA’S BIGGEST BANKS AND THEIR LENDING Total 333 628 747 US $

profits ($m)

s. africa s. africa

bank name

Angola 32 Banco Bic* 36 The Mauritius Commercial Bank mauritius

STANDARD BANK OF SOUTH AFRICA (South Africa)

BANCO DE FOMENTO ANGOLA (Angola)

1 Standard Bank Group 2 Standard Bank of South Africa

by news of a near $6bn guarantee the state has had to set aside for Banco Espírito Santo Angola to underwrite nonperforming loans. It has, however, highlighted the risk posed to banks by the financial health of South Africa’s households and raised questions about the quality of its competitors’ loan books. The World Bank cut its forecast for the country’s growth to 2%, from an earlier forecast of 2.7%, after a record fivemonth-long strike by platinum miners saw the economy contract by 0.6% in the second quarter, the first period of negative growth since 2009’s recession. Two weeks after 80,000 platinum miners returned to work in June, more than 200,000 workers in the metals and engineering sector downed tools in a dispute over pay. The South African Reserve Bank (SARB) warned that protracted labour

STANDARD BANK GROUP (South Africa)

THE MAURITIUS COMMERCIAL BANK (Mauritius)

country

total assets ($bn)

rank in top 200

top 10 southern african banks

source: jeune afrique top 200 banks

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households under pressure “The revision of the outlook to negative reflects the four banks’ concentration to South Africa, a high proportion of liquid assets invested in government securities and a weakening operating environment,” Fitch said. In addition to slowing growth, unemployment and inflation have risen, promptingtheSARBtoraisethecountry’s benchmark interest rate from historic lows in January for the first time in more than five years. This has placed indebted households under even more pressure. While the level of household debt as a proportion of after-tax income has declined to 75% from 2008’s peak of 83%, it remains at historically high levels and of concern to analysts, given households’ relatively low income levels. “So far, the economic slowdown has really only affected the unsecured segment of the market. We are worried that other areas in the retail banking side may also be vulnerable,” said Jaap Meijer, executive director at Arqaam Capital. Most banks, including Barclays Africa Group (BAG, #3), which saw big writedowns in its home loan book in recent years, have tightened their lend- ● ● ●

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ing criteria to reduce the risk of bigger-than-expected impairments. Graeme Korner, director at Korner Perspective, said that while consumers’ disposable income is under pressure a big spike in impairments is not expected. “The big four banks [Standard Bank (#1), First National Bank (#12), ABSA (now Barclays Africa Group, BAG, #3) and Nedbank (#5) have gotten much better at managing their debt books.” ●●●

MInDInG Costs While the country’s banks, with the possible exception of African Bank, remain adequately capitalised, the state of the economy means that revenue growth could be limited, analysts said. The focus is likely to be on cost, and leveraging the massive investments made into information technology systems in recent years to streamline processes and improve efficiencies. Increased competition in the sector and attention from the country’s antitrust authorities mean there is little scope to increase bank fees, one way to grow non-interest revenue. “It is a very tough environment to grow the top line. The local banking scene is very competitive,” said Korner. For revenue growth, “the banks really have to operate outside of South Africa’s borders”.

Standard Bank, which trades on the continentasStanbicBank,hasthebiggest footprint, with operations in 17 African countries outside South Africa. BAG, with operations in 10 countries north of the Limpopo, is also well-placed to benefit from the higher growth prospects and low banking penetration rates outside South Africa (see box). FirstRand (#4) and Nedbank face a tougher battle. While FirstRand has set aside R10bn for acquisitions on the continent, it has walked away from three potential deals in the past three years, saying it won’t overpay for assets. It aims to expand into Nigeria this year and says it will start building a banking operation from scratch in Ghana after talks to acquire Merchant Bank Ghana failed last year. “Building a greenfields bank in Ghana will be a long hard slog,” Korner said. FirstRand will continue to build its investment banking footprint on the continent, doing much of the work in South Africa. Nedbank, which bought a stake in Banco Unico in Mozambique earlier this

year, is expected to decide by December if it will convert a $285m loan it made to Ecobank in 2011 into an equity stake of around 11%. It has the option to increase the stake to 20%. Ecobank has operations in 33 countries on the continent, including in key markets like Nigeria and Kenya. Analysts remain concerned over Ecobank’s corporate governance regime after Nigeria’s Securities and Exchange Commission (SEC) made recommendations to improve procedures in January. The SEC report, which followed a complaint by a former Ecobank finance director that the group planned to sell assets at below market value, led the Public Investment Corporation, Ecobank’s biggest shareholder, to call for the resignation of then-CEO Thierry Tanoh. He was ousted by the board in March. “We think Nedbank would go for the equity stake and probably would like to get control of the group eventually,” said Arqaam Capital’s Meijer. ● Jana Marais in Johannesburg

profIle nadine hutton/bloomberG via GettY imaGes

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barclays africa Group Making african business a priority a Year after barclays sold the bulk of its african operations to absa, its south african subsidiary, the combined Barclays Africa Group (BAG, #3) has been outperforming its rivals on the Johannesburg securities exchange (Jse). following two years of underperformance, driven in part by higher-than-expected credit write-downs in its home loan book and a loss in market share from its retail and

business banking divisions, operational improvements and its expanded african footprint have boosted investor confidence. “baG has scored a few own goals in the past few years, but they’ve got some good talent and it seems that, operationally, they’re getting on top of things. management looks a lot more confident,” said Graeme Korner of Korner perspective. the africa acquisition is already contributing

to earnings, and the group is targeting up to 25% of its revenue to come from operations outside south africa by 2016. in 2013, it contributed an estimated 4% to banking revenue, with disclosure expected to be more detailed this year. for barclays, growing its african business is a priority. When the bank announced plans to cut 19,000 jobs over the next three years in may, it said its african operations the afric a report

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won’t be affected. baG will continue to hire staff across its operations in 11 countries on the continent, including Ghana, Kenya, Zambia, mauritius and tanzania, as it sees an increase in capitalraising efforts and mergers and acquisitions, it said. in July, baG’s investment bank was ranked second on the continent after morgan stanley for equity issuance for the year, according to data from bloomberg. ● J. M.

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top 200 banks

IN TRANSITION, BANKS SLOWLy REGAIN TRUST Increased stability in Egypt and Tunisia bring banking reform and an effort to support small industries, while Islamic banking is attracting a new class of investors across the region

profits ($m)

top 10 north african banks

country

total assets ($bn)

north africa

rank in top 200

Egypt Morocco

61.2 46.6

239 613

8 Groupe Banque Centrale Populaire Morocco

35.1

388

9 Banque Misr

31.2

166

28.6

149 386

bank name

6 National Bank of Egypt 7 Attijariwafa Bank

Egypt

10 Banque Maroc. du Comm. Extérieur Morocco 11 Banque Nationale d’Algérie

Algeria

27.8

13 Banque Extérieure d’Algérie

Algeria

26.6

264

16 Crédit Populaire d’Algérie

Algeria

17.4

213

18 Commercial International Bank 22 Qatar National Bank Al Ahli

Egypt Egypt

16.3 11.6

374 58

2013 RESULTS FROM TOP 200 BANKS RANKING

hile North African countries have been focusing on politics after the 2011 uprisings, the economic side – particularly the banking sector – has been neglected. Over the past few years in Egypt, for example, banks have been using as much as 40% of their balance sheets to fund government budgets through the purchase of government-issued paper. Public banks are no exception and are heavily exposed to treasuries, with the National Bank of Egypt (#6) and Banque Misr (#9) the most vulnerable. This trend, coupled with a widening of the budget deficit and more stringent prudential regulation, could lead to a situation where banks hit their single obligor limit. This is particularly true for foreign-owned banks that have to comply with Basel III requirements. It’s just one example of how the countries in the region “need many financial-sector adjustments to be sustainable”, according to Laurent Gonnet, the World Bank’s senior financial-sector specialist for North Africa. egyptian progress Showing some promise, Egypt’s newly adopted budget, approved by recently-elected president Abdel Fattah al-Sisi, targets a lower budget deficit. This could reduce pressure on banks to fund the public deficit and unlock more resources to fund the private sector. At face value, stability seems to have improved as the non-performing loan ratio has dropped from 13% (pre-revolution) to about 10%. Yet, this improvement is due in part to revision of the payment calendar allowing an extension of the payment period for some loans.

shawn baldwin/bloomberg via getty images

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Analysts are optimistic: despite some weaknesses, the banking sector in Egypt remains sound. Aware of existing challenges, the Central Bank of Egypt has been making steady progress on reforms in the face of political unrest, while deposits growth in March 2014 was 17% higher than pre-revolution levels of 9% – a strong signal of trust in the Egyptian banking system. “Credit growth [across the region] was a bit sluggish and innovation was hampered. However, in the case of Egypt, the sector reaped gains of earlier reforms and consolidation and was able to surf the recent turmoil with minimal pains,”says Sahar Nasr, World Bank lead financial economist for the Middle East and North Africa region. “Political stability is key to sustain a healthy growth and in this respect Egypt is emerging as

top-rated national bank of egypt will benefit from a lower budget deficit, unlocking resources

the most robust and stable recovering market in the region,” Nasr says. Algeria appears to be following the regional trend even if its exposure to the Arab Spring was limited. “Algeria is a closed market where the government is the main economic actor: 90% of the banks are state-owned and all the non-performing loans are regularly absorbed, costing the country 1% of its GDP,” says the World Bank’s Gonnet. Early this year the country worked on different financial crisis simulation exercises, while the central bank is trying to improve the country’s legal framework. In Tunisia, efforts to reform publicsector banks have accelerated ● ● ●

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nomy, through its intervention in the In 2012 Libya passed a law to intromicrofinance sector – via the Banque duce Islamic finance into the country, which would ban the use of interest payTunisienne de Solidarité – as well as financing the small and medium-sized ments in the move to a sharia-compliant enterprises sector through the Banque financial system. The shift is expecde Financement des Petites et Moyennes ted to be completed in 2015, but the Entreprises. details of its implementation are not Meanwhile, Islamic banking is rapclear yet. That is worrying to some, as idly growing worldwide, particularly in the transition “could further reduce North Africa. Islamic financial assets financial intermediation unless instirepresent around 10% of the banking tutions, instruments and capacity are introduced,” says Pietro Calice, a World sector. Egypt hosts the oldest Islamic Bank in the region, while Morocco has Bank senior financial sector specialist recently developed a more conducive covering Libya. regulatory environment for Islamic finance that is expecmorocco has taken advantage ted to attract investments in of its expertise in the region, with the short and medium term. banks opening branches in tunisia It is likely to attract Dh70bn ($8bn) in five years, to repThe Libyan financial sector remains resent 10% of the country’s assets. underdeveloped and mainly owned “Islamic banking will be a hit if Islamic banks succeed in providing the by the public sector (around 80% of same services as conventional banktotal assets), and the banking sector is the main provider of financial services. ing for a lower price, which won’t be “The lack of access to finance makes it an easy thing for new organisations,” particularly difficult for private-sector says Rachid Kettani, finance director enterprises to start or expand their opfor Attjariwafa Bank. erations. Collateral regimes are difficult Tunisia and Libya are also experito enforce; credit information systems encing more interest in introducing are nascent; the (development) banks this class of services. “Islamic finance provides workable solutions to finance considerably distort the sector as they microfinance and smes But the reform of the banking sector in innovations and entrepreneurs that are primarily directed to implement Tunisia is expected to go beyond the build on risk sharing and minimal colsocial programmes,” explains Calice. restructuring of public banks. The govlateral requirements. This provides Morocco has had different chalernment recently presented an outline opportunities for growth and devellenges to its neighbours. While less for how the state should fund the ecoaffected by political turmoil, the counopment,” says Nasr. try was badly hit by the European economic crisis. As the crisis seems to profile fade, Morocco’s deposits have been increasing in 2014. Last year’s liquidity stress had the Central Bank injecting Dh75bn into the economy to unburden the banks, a level that decreased this year to Dh30bn. Morocco-based Attijariwafa Bank’s expansion in Tunisia is a good example of how the country is taking advantage morocco’s banque development strategy. government. this 6.5%, of its expertise in the region. “Tunisian bcp’s balance sheet 7-year private loan, centrale populaire banks were not offering products to the shows 7% growth, money which will (#8) (bcp) is happy Tunisian diaspora such as transfer fund with its results: reaching more than be used for the ‘plan solutions, easy ways to take a credit sénégal emergent’, net profit for 2013 was Dh290bn – a reflection from abroad or currency convertible is a first for the region. Dh2bn ($240m), up 4%. of the overall growth accounts, which are products that are, of the group. With this loan, which following the same in Morocco, already well developed,” through its brings crédit suisse trend, its net banking says Kettani. Morocco remains the income increased 15% subsidiaries upline into the West african second-largest foreign intra-African economic and monetary to Dh13bn and the group Group, banque investor: Moroccan direct investment union for the first time, consolidated its internal atlantique and in Africa is expected to accelerate from atlantique finance, bcp bcp positions itself as a capital to Dh34.5bn, a pace of $2bn in the past 10 years to 11% growth, allowing raised a $500m loan platform between europe around the same amount in the comthe bank to pursue its for the senegalese and the continent. ● n. r. ing two to three years. ● nadia rabaa ● ● ● over the past year. Audits of Banque de l’Habitat (#57) and Société Tunisienne de Banque (#45), two out of the three state-owned banks, are now finalised while the third, Banque Nationale Agricole (#46), has recently begun its review. “These audits will inform the action plan that will be implemented to address the weaknesses […] both in terms of financing but also governance and management practices and systems,” says Thouraya Triki, a principal economist for the African Development Bank. The outline of the action plan was presented to the Council of Ministers in July and its implementation should start this month. This could result in the private sector managing a state-owned bank, which would be a first for the region. Meanwhile, the government has been busy creating an asset management company over the past three years, which would deal with non-performing loans outside of a court of law. Gonnet explains: “The idea is to get rid of the entire tourism sector’s non-performing loans first, as the sector is heavily indebted, with many business owners abusing the bankruptcy law.”

banque centrale populaire moroccan bank brokers crosscontinent loan for senegal

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