Fintech, financial services and insurance, professional, scientific and technical services, and logistics and transportation were the top sectors with the highest number of Nigerian firms on FT 2024 Africa’s fastest-growing list.
Other sectors are agriculture, forestry and fishing, retail, and food and beverages.
The latest ranking by the Financial Times (FT) and Statista, a research company in which BusinessDay was a cooperation partner in the research, is now in its third year. It lists 125 companies, ordered by the highest compound annual growth in revenues (CAGR) between 2019 and 2022.
The list revealed that fintech, financial services, and insurance had the most number of companies which was seven followed by professional, scientific, and technical services and logistics and transportation with two each.
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Agriculture, forestry and fishing, retail, and food and beverages also had two companies respectively.
“Nigeria, one of the continent’s three biggest economies, spent 2023 in an economic crisis as prices spiraled upwards and the naira went into freefall,” the FT said in the ranking report.
It said nevertheless, that it still had the second-highest number of companies in our ranking of Africa’s fastest-growing, compiled in conjunction with research company Statista, and that South Africa, where growth has also been lackluster, was home to the highest number.
“Even generally more dynamic economies, such as Kenya — which, like many African countries, is labouring under high public debt — struggled to get out of the low-growth doldrums as inflation gnawed at disposable income and the government squeezed expenditure.”
The 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 Financial Times. The application phase ran from October 9, 2023, to February 29, 2024.
Here are more details on the sectors
Fintech, financial services & insurance
The companies under the fintech, financial services, and insurance sector are Moniepoint In., Afex Commodities Exchange Limited, Mycredit Investments Limited, Alpha Morgan Capital Managers Limited, Paga Group Limited, United Capital Plc, and Comercio Partners Limited.
According to the latest GDP report by the National Bureau of Statistics (NBS), the finance and insurance sector grew to 26.53 percent in 2023 from 16.36 percent in 2022.
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Professional, scientific & technical services
Two companies which are Thrive Agric Limited and Tripple Gee & Company Plc are from the professional, scientific & technical services sector.
The sector is made up of businesses whose employees offer particular specialised skill sets and knowledge to clients. Most of the industries grouped in this sector have production processes that are almost completely dependent on worker skills.
Last year, the sector grew marginally to 2.43 percent from 2.28 percent in 2022.
Logistics and Transportation
Bisedge Limited and John Holt Plc are from the Logistics & Transportation sector.
Logistics and transportation are a collection of processes involved in the production, storage, inventory, delivery, and distribution of specific goods or services.
It is an integral element of the whole supply chain and it involves proactive procedures to safely and efficiently move products from the manufacturers to the sellers, and up to the end users or the consumers.
Transport services slowed to 4.16 percent in 2023 from 5.55 percent in the previous year.
Agriculture, forestry, and fishing
Two companies which are West African Soy Industries Limited and Wacot Rice Limited are from the agriculture, forestry, and fishing sectors.
Agric, forestry and fishing industries involved business activities engaged in growing crops, raising animals, growing and harvesting timber, and harvesting fish and other animals from farms or their natural habitats. These business activities also include support services to the production activities mentioned above.
The agric sector slowed to 1.13 percent from 1.18 percent, forestry grew by 1.77 percent from 1.62 percent and fishing contracted to 1.36 percent from 0.47 percent.
Retail
Sundry Markets Limited and R.T Briscoe Plc. are from the retail sector. It consists of all companies that sell goods and services to consumers. There are many different retail sales and store types worldwide, including grocery, convenience, discounts, independents, department stores, electrical, and specialty.
But the trade sector which comprises wholesale and retail slowed to 1.66 percent from 5.13 percent.
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Food and beverages
BUA Foods Plc and Amel International Services Limited are from the food and beverages sector. It includes restaurants, cafeterias, cafés, fast-food joints, pubs, delis, food manufacturing operations, catering businesses, food transportation services, and more. Work in this industry can range from packaging to preparing, transporting, and serving food or beverages.
Food, beverage, and tobacco slowed to 3.03 percent from 3.86 percent.
