While revenue growth for the biggest firms in the US has been languishing for several years now, over the same time frame a group of multinational corporations based in sub-Saharan Africa have been growing at an annual rate of almost 30%, according to a recently released report entitled Pioneers on the Frontier released by the Initiative for Global Development and Dalberg Global Development Advisors.
The report indicates that Africa’s political and economic environment have set the stage for the growth of multinationals, particularly as economic integration of countries eliminates barriers to cross-border commerce. Multinationals are succeeding despite sub-optimal policy environments. They can be a powerful engine for development by engaging with local communities, sharing knowledge, enhancing workers’ skills, and professionalising suppliers.
Nigeria is home to 14 of the 30 top sub-Saharan multinationals, including Oando (petroleum) in first position and African Petroleum (petroleum), Dangote Group (construction) and United Bank for Africa (financial) in positions 3 to 5 respectively. Kenya is home to the second and sixth ranked multinationals, Kenolkobil (petroleum) and Kenya Airways (transport) respectively.