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Sonatrach, Naspers, Sonangol, Orascom…Africa’s top 500 companies

By Christophe Le Bec, Pierre-Olivier Rouaud, Quentin Velluet
Posted on Thursday, 8 July 2021 18:08, updated on Monday, 12 July 2021 10:45

Mandatory Credit: Photo by ddp/pool/Schmidt/action press/REX/Shutterstock Akinwumi Adesina (AfDB) PC with German Chancellor Merkel and the chairman of international economic and financial organizations, Berlin, Germany - 11 Jun 2018

The effects of the Covid-19 crisis will hit African companies like a tsunami on their 2020 and 2021 earnings.

Even before this exogenous shock, the continent’s champions were already struggling. This is what the latest edition of the The Africa Report’s Top 500 African companies shows. This exclusive ranking is marked by a further decline (-1.05%) in the total turnover of companies, expressed in dollars. This follows a drop of 1.6% in the previous ranking. Taking investors on a decade-long roller-coaster ride, the overall turnover of the Top 500 has grown by just 5.4% since 2009. The peak was in 2012 ($736.8bn), and it could be years, perhaps a decade, before it is matched.

The new underperformance of the top 500 is all the more worrying given that the continent’s economies had been growing rather robustly. According to the African Development Bank (AfDB), continental GDP grew by 3.3% in 2019, with 3% for sub-Saharan Africa alone.