East Africa's Largest Non-Foreign Enterprises - Second Edition

Have revised the July list based on the availability of newer financial data for some organisations.

Since the data is of varying accuracy, have for the first time opted to color code the list to indicate the degree of reliability of each organisation's stated financial position. This implies the data of the different enterprises should not be viewed with the same weight.

• Green (Very Reliable) - Information sourced directly from the organisation's financial statements or its audited accounts.
• Yellow (Moderately Reliable) - This primarily covers self-declared revenues and reports in reputable publications
• Red (Least Reliable) - Revenues estimated from a combination of the following where available: product volumes, production capacity, product market price, market share, branch network, number of employees, comparison with similar size organisation in region etc

Notes

• Sameer Group is colored red because though the revenues declared are from a reputable publication (Forbes), there is a possibility that this total included revenues from Kenya's second largest telecom company Bharti Airtel. Sameer is no longer a material shareholder in Bharti Airtel and its stated turnover may therefore not be accurate.
• The list includes 5 majority foreign-owned companies - East African Breweries, Roofings Group, Tanzania Portland Cement, TPS Serena and Panafrica Insurance
• Where exchange rates apply, the rates used are as at 28th November 2014.

East Africa's Largest Non-Foreign Enterprises by Revenue [US$100M or more]

This is the most comprehensive list anywhere of the largest non-foreign enterprises in the East African Community (EAC). The list focuses on enterprises with about US$100M or more in annual revenues. 

The US$100M cutoff is chosen because it possible to capture almost all institutions with revenues above this. The sheer size and visibility of these organizations means information on their revenues is likely in the public domain.

So detailed was this research that if there is any enterprise in East Africa not in this group, there is a high possibility its revenues are below US$100M. All information in this list can be explained or corroborated.

The research includes state-owned institutions with the exception of the taxman and central bank of each country. To provide context, the list also includes 5 foreign-owned companies operating in the EAC.

See more detailed notes at the bottom of the list.


US$ Exchange Rates as at 31st March 2014




Additional Notes:

It is near impossible to find one measure that can adequately compare enterprises across different sectors. The 7 parameters often used to compare businesses are revenue, assets, capital, profit, market capitalization, number of employees and geographical footprint. 

I have opted for revenue. It as close a parameter as one can get to compare the economic impact of enterprises in different sectors. Of course, it is also the easiest to estimate based on third party information.

Using revenue also has obvious shortcomings. For instance, $1,000 in revenue for an oil marketer (e.g. KenolKobil or Oilcom) or retailer (e.g. Nakumatt Holdings or Capital Shoppers) is very different in significance from $1,000 revenue for a bank (e.g. Bank of Kigali or National Microfinance Bank). The profit margins are starkly different. While oil marketers or retailers often have profit margins of 2%-10% (in this case $20-$100), it is not unusual for banks to realize a 30%-40% margin (for this example, $300-$400). Two companies could therefore have identical revenue but with one having 10 times the profit.

Still, the amount of money clients are willing to pay for a product or service is perhaps as decent a measure as one can get of the organisation's relative impact on a country's or region's economy. That said, I have included all 7 parameters except capital and market capitalization for the top 50 where available in order to provide context to the numbers.

The focus on revenue though means some institutions that would definitely appear on any top 85 list by assets (e.g. NSSF Kenya [$1,319.59M], NSSF Tanzania [$1,359.83M], Exim Bank - [$699.99M]) or by profit (e.g. Centum [$46.42M]) have not made the cut.

State institutions have been included though it can be argued that the revenues for some (e.g. Communications Authority of Kenya) are based on mandatory statutory or regulatory payments. They can thus be looked at as agents of taxation along the same lines as the Tanzania Revenue Authority.

Where official financials are not available, I have used a number of factors to determine the revenue of companies:

• Multiplying production output with product wholesale price
• Inferring from counterparty's official financial results
• Market share statistics from industry regulator - This is particularly for oil marketers
• Benchmarking certain parameters (e.g. number of employees) with businesses in similar industry in the country or region

For certain industry sectors where the term revenue may be subject to interpretation, revenue here is defined as follows:

• Bank revenue = Interest Income + Commissions + Fees + Other Income
• Pension fund = Investment Income + Capital Gains + Other income. It excludes pension contributions. 
• Insurance revenue = revenue (including premiums) + Other income + reinsurance premiums ceded

For certain state bodies, profit here refers to the 'surplus for the year'.

The results of the research may be surprising for some. 

First, one may wonder how come companies associated with entrepreneurs Forbes has ranked as the region's wealthiest do not appear higher up on the list. The reason is simple - this is a ranking by revenue and not by net worth. An individual may have a high net worth but modest annual revenue. Certain forms of enterprise are pre-disposed to low revenue 

For example, it will take a heck of a lot of real estate to generate US$100M in annual rental income. A real estate mogul with a net worth of US$1B could only be seeing US$20M in rental income per annum from his/her properties.

Second, there is a tendency for individuals/businesses to overstate their wealth/value in the absence of independently audited financial statements. Outside South Africa, most large businesses in Sub Saharan Africa are not publicly listed and therefore are under no obligation to publish their accounts.

In addition, recent news items covering Africa's wealthiest appear to either confuse business revenue/assets with net worth or exaggerate a company's value. There are several factors to consider when valuing a business including revenue, profit, assets and liabilities. 

Perhaps the self-declared valuation is an attempt by the businesses to send feelers into the international markets in hopes of a takeover bid. Obviously the owner of a business has the discretion to set the price at which they can sell their company. However, this does not mean the market will share the same view. It is hard to see how a business selling a FMCG product with a turnover of US$500M and assets of US$300M can be valued at US$5B.

The market value of retailers, FMCGs and oil marketers is often much lower than their annual revenue. For banks, market value is usually much lower than the total assets. For instance, US banking giants Wells Fargo and Citigroup each have assets of more than US$1.5T. However, neither bank is valued at more than US$300B.

Where an enterprise self-declares revenue without providing financial statements, I have attempted to do a sanity check. In one instance (Lake Group), this has meant disregarding the self-declared estimate since this seemed inconsistent with other data sources e.g. official market share information.

Another observation is the emergence of East Africa's own chaebols especially in Tanzania and Uganda. Cue? 'Diversified Conglomerate'. Due to the relatively virgin economies in the region, successful family-owned businesses quickly discovered they had the capital to satisfy several other untapped opportunities in the marketplace. 

For Tanzania and Uganda, this perhaps also has to do with the history of socialism and civil war respectively that saw the stunting of local (indigenous) private enterprise. When the doors finally opened, very few were technically or financially prepared to take advantage of the opportunities. Those that did are bordering on all-encompassing. 

The conglomerates oversee hugely unrelated industries e.g. bank vs sugarcane farming, telecoms vs real estate, tyre manufacturing vs dairy farming. The size and reach of these conglomerates can be so expansive as to impact almost every major sectors of the economy. There is also the risk of potential conflict of interest where a bank lends money to a company in the same conglomerate without necessary due diligence.

Kenya too has its chaebols in part due to the debilitating impact the Moi dictatorship had on indigenous free enterprise. These are not as all encompassing though. The two largest conglomerates have a substantial (Sameer Group) or majority (Comcraft Group) of their business taking place outside Kenya. In addition, Kenya's private sector is the most diverse in the region with many companies choosing to specialize in one industry sector.

A number of enterprises would likely be on this list such as Midland Group, Tanzania Road & Haulage, MAC Group, New KCC, Simba Corporation, TSS Group, Multiple Hauliers Group, Bobmil Group, Apex Steel and Nairobi Hospital. They have been excluded due to unavailability of official revenue data and difficulty in calculating revenue estimates.

Largest Retail Chains in Africa [Annual Sales of US$200M or More]

When it comes to formal retail, the top ten rankings for the continent are not too different from the rankings for Sub Saharan Africa (For Sub Saharan list, click here)

South African companies occupy 9 of the top 10 positions with Morocco's Marjane Holdings being the only business from a different country in the top 10.

There are more than 1500 independent formal retail companies across Africa. Of these, less than 35 had annual sales of $200M or more. 

The following two retailers from Nigeria should probably be on this list (revenues are likely somewhere within the $100M to $250M range). However, no information on their sales is currently available.

• Park n Shop (part of Artee Group which also owns the local franchise of Spar)
• Addide

US$ exchange rates as at April 2014.

Largest Retail Chains in Sub Saharan Africa

Perhaps nowhere else has South Africa demonstrated its capacity as the continent's private sector leader than in its dominance of Sub Saharan Africa's (SSA) retail industry. The 11 largest retailers in SSA are all from the continent's southern most country.

While the largest retailers in other SSA countries contemplate opening a couple of new stores, the continent's largest retailer Shoprite is mulling hundreds of new stores in the coming 5 years. 

As South Africa's retailers flex muscle and rise above the local competition in Africa's most populous country and now largest economy Nigeria, that already huge gulf with non-South African players on the continent can only grow wider. Of the 10 largest South African retail chains, 6 are already in Nigeria.

Size perhaps precipitates another key distinction between South Africa's retailers and those of the rest of the region - the availability of information. All major retailers in South Africa are listed on the Johannesburg Stock Exchange and therefore required to make their financial results public. 

In contrast, virtually all significant players in the rest of the continent are privately owned. Fortunately, a good number do make their annual turnover available even though they may not provide access to their actual financials. One can also perform a 'smell test' on their numbers by bench-marking their results against similar sized businesses in similar markets.

In the course of this research, there were some pleasant surprises. For instance, Zimbabwe's economy is often assumed to be a complete basket case in every respect. Yet its local retailers are some of the largest in SSA outside South Africa. 

Outside South Africa, the only SSA countries that already have a relatively vibrant home grown formal retail sector are Kenya, Zimbabwe, Gabon, Angola and Cote d'Ivoire. Other countries are either still fairly virgin markets or are served by foreign retailers. Majority of homegrown retailers across the region operate solely within their home markets. The exception are companies from South Africa and Kenya.

There are hundreds perhaps thousands of distinct formal retail businesses across Africa (Kenya alone has more than 250 separate supermarket businesses) but very few have an annual turnover of more than US$200M a year.

The following two retailers from Nigeria should probably be on this list (revenues are likely somewhere within the $100M to $250M range). However, no information on their sales is currently available.

• Park n Shop (part of Artee Group which also owns the local franchise of Spar)
• Addide

French retailer Casino has a significant presence in several countries across Francophone SSA.

US$ exchange rates are as at April 2014.

For the Africa-wide list, click here

Africa's Busiest Container Ports in 2012 and 2013

The following is an exclusive listing of Africa's busiest container ports. Global rankings (e.g. from Containerisation International Magazine) usually focus on the world's top 100 container ports and thus include less than 5 ports from Africa. As such, there currently does not exist a comprehensive listing of Africa's largest container ports.

Submit any request for clarification in the comment section below or get in touch via Twitter on @afrocompanies

Observations 

• The total number of TEUs managed by Africa's top 36 container ports in 2012 was 25 million. While that number is no doubt huge, it is substantially lower than container traffic at the world's two busiest container ports (Shanghai's 32.53 million TEUs and Singapore's 31.65 million TEUs) and not much more than the next two busiest ports (Hong Kong's 23.12 million TEUs and Shenzen's 22.94 million TEUs).

• The '2012' statistics for Egypt's Sokhna port are from 2008. However, 2012 data is unlikely to be too far from that figure given the sociopolitical unrest that has plagued Egypt since January 2011.

Definition of TEUs 
TEU stands for Twenty-foot Equivalent Unit. It is a standard unit for counting containers of various capacities and for describing the capacities of container ships or container terminals. One 20 Foot ISO container equals 1 TEU. One 40 Foot ISO container equals two TEU.



2012




2013

2013 Profit Ranking for the 62 Largest Indigenous Banks in the 48 countries of Sub Saharan Africa

The following is a listing of the 62 largest indigenous banks in Sub Saharan Africa (SSA) in order of profit before tax. It is the most comprehensive such list of large banks (over US$1B assets) in the 48 countries that form SSA and includes institutions not captured by The Banker or The African Report lists. There are about 400 indigenous banks in SSA.

US$ exchange rates as at April 2014.

See notes below on the data.

Notes

Data can be verified from the bank's financials (most are available on the bank's website) unless otherwise indicated. Source links are available upon request. Get in touch via the message box below or on Twitter @afrocompanies

The word 'indigenous' means banks whose head office is in Sub Saharan Africa (SSA). For this reason, the following large banks that would otherwise be on this list (their assets in SSA exceed US$ 1B as at December 2013) have been excluded:

• Barclays Bank including Absa (Head Office - UK) - 2013 SSA Profit of $1703.79 million
• Standard Chartered Bank (Head Office - UK) - 2013 SSA Profit of $619 million
• Citibank (Head Office - US) - 2013 SSA Profit Estimated at $350-450 million
• Attijariwafa Bank (Head Office - Morocco)
• Societe Generale (Head Office - France)
• BNP Paribas (Head Office - France)
• Credit Agricole (Head Office - France)
• Banco Comercial Portugues (Head Office - Portugal)
• Formento (Head Office - Portugal)
• Millenium BIM (Head Office - Portugal)
• Bank of Baroda (Head Office - India)
• State Bank of India (Head Office - India)

Comments or questions are welcome.

The 62 Largest Indigenous Banks in Sub Saharan Africa by Assets (US$1B or more)

The following is a listing of the 62 largest indigenous banks in Sub Saharan Africa (SSA) with assets above US$ 1B. It is the most comprehensive listing of large banks in the 48 countries that form SSA and includes institutions not captured by The Banker or The African Report lists. There are about 400 indigenous banks in SSA.

US$ exchange rates as at April 2014.

See notes below on the data.



Notes

Data can be verified from the bank's financials (most are available on the bank's website) unless otherwise indicated. Source links are available upon request. Get in touch via the message box below or on Twitter @afrocompanies

The word 'indigenous' means banks whose head office is in Sub Saharan Africa (SSA). For this reason, the following large banks that would otherwise be on this list (their assets in SSA exceed US$ 1B as at December 2013) have been excluded:

• Barclays Bank including Absa (Head Office - UK) - Subsaharan Africa Assets of US$90B in 2013
• Standard Chartered Bank (Head Office - UK) - Subsaharan Africa Assets of US$20B in 2013 
• Citibank (Head Office - US) - Subsaharan Africa Assets estimated at $10B in 2013 
• Attijariwafa Bank (Head Office - Morocco)
• Societe Generale (Head Office - France)
• BNP Paribas (Head Office - France)
• Credit Agricole (Head Office - France)
• Banco Comercial Portugues (Head Office - Portugal)
• Formento (Head Office - Portugal)
• Millenium BIM (Head Office - Portugal)
• Bank of Baroda (Head Office - India)
• State Bank of India (Head Office - India)