In Africa, there are 345 companies generating annual revenues of $1 billion or more, according to a McKinsey report. Among them, 230 were founded within Africa itself, often by African entrepreneurs. South Africa leads the continent with 40% of these billion-dollar revenue companies. Between 2015 and 2021, South African large companies demonstrated robust revenue growth at an average rate of 5.5% annually, whereas counterparts in other nations experienced an average decline of 1.7% during the same period.
However, the report notes a 7% net reduction in the number of African companies earning $1 billion in revenues since 2015, in contrast to significant increases observed in Latin America, China, and India. These billion-dollar companies span various sectors, yet 70% of their revenues originate from six main areas: oil and gas, mining, retail and consumer goods, financial services, manufacturing, and telecommunications.
While revenue growth patterns vary across sectors, Africa’s large companies collectively achieved a 4.9% annual revenue increase from 2015 to 2021. Remarkably, South African companies stood out, achieving an even higher average growth of 5.5% per year.
The report highlights untapped potential within this group of billion-dollar companies. They have opportunities to optimize their processes, explore new markets, and enhance profitability. McKinsey predicts that by 2030, these 345 companies could collectively boost their revenues by over $550 billion.
This data underscores the diversity and dynamism of Africa’s business landscape, with the potential for significant growth and positive economic impact through strategic initiatives and expansion into new sectors and markets.
