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Nigeria ranks second in Africa’s fastest-growing companies despite economic crisis – Report

Nigeria's Monniepoint 4th on List, Omniretail 1st

Founded in 2019, Omniretail boasted a staggering 66,294.88 per cent absolute growth rate and a compound annual growth rate of 772.39 per cent within the period under review. Additionally, its workforce expanded from 11 to 896 between 2019 and 2022.

 

Nigeria has secured the second-highest position among Africa’s fastest-growing companies despite the ongoing economic crisis, as revealed in a report by the Financial Times in conjunction with Statista on Tuesday.

The FT-Statista report, identifying 125 of Africa’s fastest-growing enterprises, underscores the resilience demonstrated by companies amid challenging economic conditions exacerbated by inflation and the plummeting value of the naira. The report covers the period between 2019 and 2022.

According to the International Monetary Fund, Africa’s economic growth in 2023 stood at 3.2 per cent, trailing behind Asia’s growth of approximately 5 per cent. This disparity is accentuated in per capita terms due to Africa’s rapid population expansion. “And, given the African continent’s fast population expansion, this underperformance is even starker in per capita terms. Rather than closing the gap with wealthier regions, on aggregate, Africa is falling further behind,” the report says.

Abebe Selassie, the head of the IMF’s Africa department, expressed concerns regarding the pandemic’s impact on poverty, particularly in vulnerable nations. However, Selassie acknowledged the remarkable resilience of many businesses, especially those not heavily reliant on government contracts.

Topping the list of resilient companies is Nigeria’s Omniretail, a B2B e-commerce platform facilitating digitalisation for small retailers, kiosk owners, and market traders. Monniepoint is fourth on the list.

Founded in 2019, Omniretail boasted a staggering 66,294.88 per cent absolute growth rate and a compound annual growth rate of 772.39 per cent within the period under review. Additionally, its workforce expanded from 11 to 896 between 2019 and 2022.

Mauritia’s Kyosk.App, which describes its business as “empowering traditional African retailers, farmers and their customers with a digital-first and data-led distribution platform,” and South Africa’s Resourgenix clinched the second and third positions respectively, highlighting a diverse representation across the continent’s business landscape.

South Africa leads the pack with 42 companies listed, while Nigeria follows closely behind with 22. Kenya and Morocco share the third position with 12 companies each.

The report underscores the global impact of African businesses, with Aniko Szigetvari of Atlantica Ventures noting, “If you figure it out in Africa, you can take it to other markets.”

 

Also Read: Driving capital into Africa’s essential sectors

The selection process for Africa’s Fastest Growing Companies 2024 spanned from October 9, 2023, to February 29, 2024. Companies were meticulously identified through comprehensive research and invited to participate, ensuring a rigorous evaluation process, which included their highest compound annual growth in revenues (CAGR) between 2019 and 2022, according to the FT.

Statista identified thousands of companies in Africa as potential candidates for the FT ranking through research in company databases and other public sources. These companies were invited to participate in the research by post and email. The project was advertised online and in print, allowing all eligible companies to register via the websites created by Statista and the FT.

Each listed company demonstrated substantial revenue growth, with revenue figures verified by relevant company executives. Criteria for inclusion encompassed organic revenue growth, independence, and a minimum revenue threshold.

The list of Africa’s fastest-growing companies included those with revenue of at least US$100,000 generated in 2019 and revenue of at least US$ 1.5 million generated in 2022, among other criteria.

Abdullah Tijani

Abdullah Tijani studied Law at Usmanu Danfodiyo University, and has over five years journalism experience, including writing on business and economy.

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