By Kathleen Caulderwood - Nigeria, Africa's largest economy, is attracting investor attention from around the world, especially from companies in fast-growing sectors like mobile banking and information technology (IT).
Despite continued problems with corruption and instability, an impressive economic growth rate, growing middle class and skilled youth population embracing a wave of technological development provide a fertile ground for businesses. Nigeria's prospects dominated the discussion among global policymakers and business leaders at the World Economic Forum (WEF) on Africa, which was held in Abuja this week.
The WEF’s list of of “Global Growth Companies” includes more than 360 firms from 65 countries that their experts believe have “clear potential to become global economic leaders,” based on business models, growth record, leadership and their markets.
“Although they come from a variety of market backgrounds, what brings them together is their ability to exceed industry standards in revenue growth, promote innovative business practices, and provide excellent track records of leadership and corporate global citizenship,” wrote David Aikman, managing director of the World Economic Forum, in a blog post.
Of 16 new businesses added to the elite group this year, six are based in Nigeria and are in fast-growing sectors such as mobile banking, agriculture and IT. Here are thumbnail sketches of each one:
Interswitch Ltd
Interswitch is a mobile-payment company that works with governments, banks and private companies to process payments and transactions through ATMs, kiosks and, most importantly, mobile phones.
Founded in 2001, the Lagos-based company now has partnerships with 21 banks across Nigeria and works with partners across sub-Saharan Africa.
UAC of Nigeria PLC (LAGOS:UNILEVE)
Founded in 1879 and incorporated by a subsidiary of Unilever in 1931, the Lagos-based company took its most recent name in 1973. Today, they’re a holding company of a variety of businesses in the food, beverage, real estate and logistics sectors, acquiring lucrative partnerships with major regional companies.
Last year its profit before taxes was $8.6 billion, up 30 percent from the year earlier, according to the company's most recent financial report.
Computer Warehouse Group (LAGOS:CWG)
One of the fastest-growing communication and technology companies in Nigeria, it was started with four staff members in 1992. Two decades later, they had established offices in Ghana, Uganda and Cameroon “in pursuit of its pan-African vision,” according to the company website.
CWG listed on the Nigerian Stock Exchange in November 2013. Last year company revenues jumped by 10 percent, with after-tax profits jumping 81 percent.
Notore Chemical Industries Ltd
Notore is a fertilizer and agriculture company with a focus on green development. Founded in 2005, and based in the strategic port of Onne on the Niger Delta, Notore operates the only plant in sub-Saharan Africa that manufactures urea, a by-product of the oil and gas industry.
“By making fertilizer more accessible to farmers through its supply chain and pricing, Notore is helping to stimulate the local production of foods such as rice and sugar,” wrote Forbes columnist Mfonobong Nsehe, adding that this type of business will help decrease the country’s dependence on imports.
Seplat Petroleum Development Company PLC (LAGOS:SEPLAT)
The Lagos-based oil company was formed by a merger of two smaller Nigerian companies in 2009. By the end of last year, they had 60 million barrels worth of reserves from its holdings in the Niger Delta.
In April, the company raised $500 million in its initial public offering, and currently pumps about 62,000 barrels per day, but relies on Shell infrastructure to do their exports, according to Bloomberg.
Nagode Group
Nagode is a manufacturing, distribution and logistics firm based in Lagos. Incorporated in 1988, the company slowly extended its business from the textile industry outwards. Today, revenue is roughly $200 million per year, and they have offices in Cameroon, India, China, South Korea and the United Arab Emirates.