Large companies in Africa are growing faster than their peers in the rest of the world, raking in $1.4 trillion in annual profits and contributing to government taxes and higher wages, a new report finds.
The continent has 700 companies with annual revenue of more than $500 million, 400 of which generate more than $1 billion, says the new study from the McKinsey Global Institute (MGI). These large companies consist of both African-owned brands and foreign-based multinationals operating within the continent across a wide range of sectors.
Five years ago, African economies were accelerating, and the continent was home to six of the world’s ten fastest-growing economies. Yet that sunny confidence has waned due to the drop in oil and commodity prices, besides the sociopolitical instability that came along with the Arab Spring. Read the rest of the story.