RYAN CHIGOCHE
Four Zimbabwe Stock Exchange-listed firms joined Africa’s elite after featuring among the continent’s top companies riding on market distortions, an analysis by leading publication, African Business has shown.
Of the new local firms that made the list, consumer staples concern National Foods Holdings was placed at 123 out of 250 companies, followed by British American Tobacco (171), Medtech (191) and Seed Co Zimbabwe on 235. The companies survey focuses on the biggest companies that are listed on the African stock exchanges with the ranking determined by market capitalisation as at March 31, 2022. The market value is converted into US dollar on the same date.
“The number of Zimbabwean companies rose from 7 in the top ranking in 2021 to 11 in 2022.These astronomical growth is driven partly by continued distortions in the exchange rate used to work out market capitalisation in US dollar. However, tribute is also due to excellent performance from dynamic firms,” African Business said.
Telecommunications giant Econet Wireless remained the highest-ranked Zimbabwean firm after jumping 84 places to 47 in 2022. Its sister company Ecocash Holdings formerly Cassava was up to 100 from 186 last year after its market cap tripled to US$1.3bn.
Delta was up to number 68 in 2022 from 130 last year.
South African companies dominated the list with 15 firms in the top 20.
The Southern African region had a market capitalisation of US$519bn, down from US$526.2bn last year, affected by the US$54.6bn decline in market capitalisation of the top ranked firm, Naspers.
The Top 250 Companies survey excludes companies which have African heritage and roots but no longer earn at least half of their revenues in Africa.
Companies with more than 50% of their revenues from Africa are also excluded if they are not listed on an African stock exchange.
