Morocco is in the Top 3 companies with a turnover of more than one billion dollars in Africa
A study by the McKinsey Global Institute states that Morocco has 20 companies with a turnover of more than one billion dollars. 6% of African companies that exceed this figure are based in Morocco and it is in third place among the countries with the most companies with this revenue, behind South Africa, which is in first place, with 40% of companies, and, in second place, Egypt, with 33 companies. While Europe has 2,700 companies with more than $1 billion in revenues, and Asia has 3,300, in Africa, 345 companies exceed this figure.
The study, entitled "Reimagining Economic Growth in Africa: Turning Diversity into Opportunity", was published on 5 June and presented at the Africa CEO Forum in Abidjan, Côte d'Ivoire.
Among the Moroccan companies included in these figures are Attijariwafa Bank, Maroc Telecom, Banque Centrale Populaire (BCP), Bank of Africa and LafargeHolcim Maroc.
The potential of the African continent lies mainly in exponential population growth. The population is expected to double by 2050 to over 2.5 billion people, which will lead to increased production and consumption, as the latest data shows that the majority of the population today is below the average consumption class (<$11 per day), as the report explains, "this would swell the ranks of the 250 million Africans expected to join the consumer class by 2030, unlocking $3 trillion in consumer spending. Such spending creates an opportunity for companies to offer affordable prices at scale, target expansion in growth hotspots and innovate in local value chains."
The study also highlights the large difference between countries within the continent itself, "almost half of Africa's population lives in countries where GDP growth between 2010 and 2019 exceeded the continent's average growth rate of 4.2% since 2000. These countries, (...) were largely medium-sized economies that benefited from above-average increases in investment, exports and urbanisation, which boosted productivity. These countries offer valuable models for the continent to emulate. The other half of Africa's population lives in countries that grew more slowly in the last decade".
Africa's economy is undergoing a transition from relying mainly on agriculture and extraction to relying mostly on the services sector, which has a gross value added of 56%. Production in services will only benefit when productivity increases. Compared to the rest of the continents, "Africa's real service sector productivity, at $7,200 in 2019 compared to $8,900 in India, $17,700 in Latin America and $20,900 in China, is the lowest of any region in the world. It is critical for Africa to improve productivity not only in its service sector, but also in its industrial sector. And with half of Africa's labour force still employed in agriculture, raising agricultural productivity and farmers' incomes remains critical.
Africa's economic growth will be greatly helped by how it embraces the innovations of the digital economy. African countries need to invest more in research and development (R&D) and international partners should offer investment support to create local digital solutions. By harnessing the continent's large and young population with technology, infrastructure improvements, health and education, Africa could be the next economic growth powerhouse.