EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 500 LEADING COMPANIES ACROSS THE REGION PREMIUM SPONSORS: 2 TABLE OF CONTENTS EAST AFRICA’S FAMILY-OWNED BUSINESS CONTENTS LANDSCAPE Co-Founder, CEO 3 Executive Summary Rob Withagen 4 Methodology Co-Founder, COO Greg Cohen 7 1. MARKET LANDSCAPE Project Director 8 Regional Heavyweight: East Africa Leads Aicha Daho Growth Across the Continent Content Director 10 Come Together: Developing Intra- Jennie Forcier Patterson Regional Trade Opens Markets of Data Director Significant Scale Yusra Khadra 11 Interview: Banque du Caire Editorial Manager Lauren Mellows 13 2. FOB THEMES Research & Data Team Alexandria Akena 14 Stronger Together: Private Equity Jerome Amedo Offers Route to Growth for Businesses Laban Bore Prepared to Cede Some Ownership Jessen Chiniven Control Woyneab Habte Mayowa Hambolu 15 Interview: Centum Investment Milkiyas Lekeleh Siyum 16 Interview: Nairobi Securities Exchange Omololu Adeniran 17 A Hire Calling: Merit is Becoming a Medina Mamadou Stronger Factor in FOB Employment Kuringe Masao Melina Matabishi Practices Ivan Matoowa 18 Interview: Anjarwalla & Khanna Sweetness Mathew 21 Interview: CDC Group Plc Paige Arhaus Theodore Angwenyi 22 Interview: Melvin Marsh International Design 23 Planning for the Future: Putting Next- Nuno Caldeira Generation Leaders at the Helm 24 Interview: Britania Allied Industries 25 3. COUNTRY DEEPDIVES 25 Kenya 45 Ethiopia 61 Uganda 77 Tanzania 85 Rwanda 91 4. FOB DIRECTORY EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE EXECUTIVE SUMMARY 3 EXECUTIVE SUMMARY Tanzania: Top 5 Sectors Rwanda: Top 5 Sectors 6 3 4 2 2 1 0 0 Agriculture Construction Industrial Consumer Transport Agriculture Construction Food & Industrial Consumer Manufacturing Goods Beverages Manufacturing Goods, * Consumer Goods, Oil & Gas and Telecoms have 1 each Oil & Gas, Telecoms* Uganda: Top 5 Sectors 15 10 FOBs 5 by country 0 Industrial Food & Agriculture Financial Tourism, Manufacturing Beverages Services Real Estate, Transport* *Tourism, Transport and Real Estate have 5 each Ethiopia: Top 5 Sectors Kenya: Top 5 Sectors 20 60 15 40 10 20 5 0 0 Industrial Food & Construction Consumer Agriculture, Industrial Construction Agriculture Food & Consumer Manufacturing Beverages Goods Retail* Manufacturing Beverages Goods * Agriculture and Retail have 25 each East Africa represents the continent’s most dynamic looks in more depth at several key themes relevant to region, with growth rates topping continental averages. FOBs, including succession planning, governance and Family-owned businesses (FOBs) play a central role in financing growth. Insights from investors, financial driving the regional market and, in the new decade to services and legal advisors shed light on these issues, come, increasingly offer new and unique investment while the experiences of business owners offer an opportunities for the Africa-focused global finance and insider look at how they play out on the ground. corporate communities. The crux of the report is a deep dive into the data These businesses typically have a long, multi- that underpins it, exploring the composition of the generational history, are robust and interested in FOB landscape in the sectors where they are most modernisation and expansion. The main obstacle concentrated across all five national markets. Within to creating synergies within the space has been its this, we’ve highlighted a selection of companies that opacity, as details on these companies’ nature, size stand out for their length of operations, diversity of and shareholding are largely unavailable. This report, operations, regional reach or employment contribution. produced by Asoko and in partnership with Business Companies have been identified under one stand-out Intelligence Unit, brings those details to light using a feature, but this does not exclude the possibility that transparent and data-driven methodology. they also exhibit others. Finally, the report ends with a In addition to the macroeconomic backdrop of the comprehensive directory of all 500 firms, including the region and each individual country, the report also main sector of operation and website. EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 4 METHODOLOGY METHODOLOGY This list of the 500 leading family-owned businesses With a combination of the above variables to hand, (FOBs) in East Africa is the product of Asoko’s six Asoko analysts can understand market share of key years of on-the-ground data acquisition and research, sector participants and at least one benchmark player where we’ve compiled profiles on 100,000+ leading and their implied revenue metrics, such as revenue companies across the continent. The 500 FOBs were per tonne of grain processed. The revenue metrics are shortlisted from our database based primarily on their then applied to each comparable private company in economic impact as measured by an annual turnover the same market, which then receive a further discount of at least $5 million a year, with other indicators being or a premium multiple based on weighing the company length of operations and employee levels. against a set of unique industry criteria. The result is The corporate data was compiled by Asoko’s team of in- a like-for-like view of company revenue estimates in a country analysts across the region, who accessed the latest particular country and sector. publicly available data through the following sources: Sector Classification • Corporate registrars Asoko uses the United Nations International Standard • Industry associations Industrial Classification of All Economic Activities • Corporate websites (ISIC) to categorise companies on our database. Each • News media company is listed under one main sector, with detailed sector operations also outlined within the full dataset. We cross-referenced and corroborated data through Our breakdown of the composition of FOBs covered these sources in order to produce a consolidated and nor- in this report uses the primary sector as a guide. malised dataset that includes the following data points: As many FOBs are large-scale conglomerates with • Company name operations spanning a number of sectors (and even • Address and general contact details smaller players display a high level of diversification) • Sectors of operation the breakdown is indicative of areas of concentration • Key stakeholders (management and among FOBs rather than an exact delineation. shareholders) Industrial manufacturing comprises the largest • Description of principal activities concentration of FOBs across the region, at 22% of the leading 500 firms, and is the largest single sector • Incorporation date in Ethiopia, Kenya and Uganda. Food and beverages • Employee level when available comes next at 16%, followed closely by agriculture with • Revenue band 12%. Construction is the final sector with a double- digit concentration, with just over 11% of FOBs. Revenue Model Revenue band information is based on financial Access the Data: estimation modelling developed by Asoko analysts. As your corporate map of Africa, Asoko provides hundreds The method is to analyze publicly available data on a of banks, investors and multinationals operating on the comparative set of variables in a particular country and continent with detailed corporate landscaping and Know- sector, including: Your-Customer solutions to support data-driven market • Operational production capacity or output entry or expansion strategies. volume The full dataset of East Africa’s 500 leading FOBs • Employee size is available to Asoko customers along with data on • Revenues from benchmark publicly listed thousands of other companies across the continent. company annual reports This FOB dataset in particular was refreshed in • Revenues from benchmark private companies October 2019, so profiles are current within six months with available information of the publication. Asoko’s research team works to • Total market size for the sector, sector ensure 100% of company profiles are refreshed on a performance indicators and sector biannual basis, keeping our database up to date with contribution to GDP authenticated corporate data. EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 1 MARKET LANDSCAPE 8 MARKET LANDSCAPE | REGIONAL ECONOMY HEAVYWEIGHT REGION EAST AFRICA LEADS GROWTH ACROSS THE CONTINENT Economic growth in East Africa, specifically Kenya, Across the broader East African region, which Uganda, Rwanda, Tanzania and Ethiopia, is forecast to comprises 15 countries in total, services account remain elevated in the near-term*. Despite challenging for around 59% of GDP, followed by agriculture at external headwinds and weakening global trade, these about 26% and industry at 15%, according to African countries benefit from large, young populations driving Development Bank data. Agriculture is the largest single domestic demand, growth in the industry and service sector of all five countries’ economies, employing the sectors, and government drives to boost infrastructure majority of the workforce and accounting for the bulk of development and value-added exports. exports across the board except in Tanzania, where gold Agriculture is a core pillar of all five economies, exports comprise the largest share of export revenues. and will likely play an important role in supporting industrialisation and manufacturing development. Agriculture Widening infrastructure deficits and government Some key cash crop sectors have performed well in recent mandates to close the gap have simultaneously created years. Uganda, Ethiopia