EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

500 LEADING COMPANIES ACROSS THE REGION

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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 and Kenya are all major coffee new investment opportunities across the region, with producers, most notably Uganda, which is Africa’s largest the private sector set to support robust near-term coffee exporter. Its coffee exports rose by 16% in the construction sector growth. 2019/20 season to hit 5.1 million 60-kilogramme (kg) bags. Tea is an important crop for Kenya and Uganda; the former Growth Trends is the world’s leading exporter of black tea, with exports Under pressure from subdued global growth prospects rising by 9% year-on-year in 2018 to $1.37 billion. Uganda’s and weak commodity prices, economic expansion 2018 tea harvest hit a record 70 million kg, surpassing the in the sub-Saharan Africa region is projected to rise previous record of 66 million kg set in 2014. at a slower pace than in previous years, with growth Tanzania is a major tobacco producer, with expected to reach 2.6% in 2019, 3.1% in 2020, and 3.2% export revenues reaching $265.36 million in 2018, in 2021. The East African Community (EAC), which while Kenya’s largest agricultural export by value is counts Kenya, Uganda, Rwanda and Tanzania among horticulture – exports reached $1.5 billion in 2018 – its members, is set to outperform all other regions, and highlighting the diverse array of cash crop resources the World Bank forecast EAC growth would hit 5.9% on offer across the region. in 2019, and average 5.6% in 2020 and 2021. Growth among the five East African economies will be even Industry higher, at a projected 7.26%. At the same time, declining commodity prices, Kenya and Uganda are expected to have recorded dependence on rain-fed agriculture, and climate more moderate growth in 2019 as a result of a weaker change have weighed on growth in recent years, than expected performance in agriculture, with GDP leading to an increased emphasis on industrialisation increases forecast to hit 5.8% and 6%, respectively. to foster greater value addition. Manufacturing Supported by robust expansion of its manufacturing accounts for just 14.6% of total exports on average sector, Tanzania’s GDP growth was expected to outpace across the East Africa region, though Kenya is an Kenya and Uganda to reach 7% in 2019. While Rwanda outlier, with manufactured goods accounting for 37% continues to record some of the highest growth in the of total exports. region, GDP was expected to moderate to 8.5% in 2019, The East African Manufacturers’ Association after hitting 8.7% in 2018. Ethiopia, one of Africa’s reports that 12.5 million people across the region fastest-growing economies, was expected to reach 9% are employed in manufacturing, or around 8.5% GDP growth in 2019 once figures are finalised. of the total workforce, with more than 1 million

* At the time of press, global economic forecasts were being revised due to the effects of the Conoravirus (COVID-19), which is not reflected in our analysis.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE REGIONAL ECONOMY | MARKET LANDSCAPE 9

new jobs created in the sector since 2009, making scale enterprises. This report details 500 of the leading manufacturing growth an important priority for these FOBs in the region, largely comprising those recording five countries. revenues over $5 million a year. Kenyan FOBs account The EAC launched its Community Industrialisation for around 60% of the total, followed by Ethiopia and Policy in 2012, with the goal of expanding its Uganda, at 19.6% and 13.8%, respectively, Tanzania, manufacturing base to create new jobs, increase export at 4.4%, and Rwanda, at 2.4%. Of these, industrial revenues and support sustainable macroeconomic manufacturing businesses account for 21.8% of the growth. Running until 2032, the policy seeks to create total, food and beverages firms for 15.6%, agriculture economies of scale and a larger market for industrial for 12.2% and construction companies for 11.2%. goods. A number of these businesses are owned by Manufacturing as a share of GDP has declined East African families of Indian descent. Given the in the years since for every EAC member except longstanding ties between India and East Africa, Indian Tanzania, though foundations are being laid to foster traders, vendors and middlemen – mainly Gujaratis growth. The region’s governments have increasingly – had been doing business in East Africa long before prioritised public spending on major infrastructure prior to British colonisation, with spice trade links projects, designed to ease bottlenecks and make the dating back more than 450 years. manufacturing sector more competitive. Furthermore, Modern immigration began during British colonial the region’s rich agricultural resources and rising times, and nearly 32,000 Indian workers came to East domestic demand for consumer goods should Africa to work as labourers on the rail line connecting support the potential of manufacturing to become an Mombasa, Kenya, to Uganda’s capital city, Kampala important economic growth driver should challenges during the 1860s. After construction finished, over be overcome. 7000 chose to stay in Africa. Over the next century, Gujaratis and Punjabis comprised the bulk of the Indian Services diaspora in East Africa, and many Gujaratis worked as Infrastructure development will play a key role in administrators for the British government. near- and long-term growth, particularly given fast- Most of the population was concentrated in Kenya, expanding populations that have strained existing Tanzania and Uganda. Kenya and Tanzania remain transport, energy and real estate infrastructure. The home to among the largest Indian populations in the African Development Bank estimates that across region, with an estimated 100,000 people of Indian the continent infrastructure needs are between origin in each country as of 2013. Although this is $130 billion and $170 billion annually, while funding less than 1% of the population in Kenya, the Indian shortfalls are estimated at up to $107.5 billion a diaspora is an important and recognised ethnic group, year. This has created new opportunities for private and in July 2017, the Kenyan government officially investment in infrastructure, and supported double- recognised Asians of Indian descent as the country’s digit construction industry growth in Ethiopia, Kenya 44th tribe. and Tanzania in recent years. Regional population by country, 2018 Service sector growth is also targeted across most of these countries, particularly in high-potential sectors Rwanda 4.5% such as retail and financial services. Demographics Kenya are driving demand – the combined population of 18.9% Kenya, Ethiopia, Uganda, Tanzania and Rwanda was just under 272 million in 2018 – while elevated GDP growth and rising personal incomes should see their respective retail markets become major investment Ethiopia destinations in the coming years, keeping the region 40.2% Uganda on track to continue leading growth in Africa. 15.7%

Family-Owned Businesses Family-owned businesses (FOBs) play a significant role in East African economies, and include both some of Tanzania the largest conglomorates and a large number of small- 20.7%

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 10 MARKET LANDSCAPE | REGIONAL INTEGRATION

COME TOGETHER DEVELOPING INTRA-REGIONAL TRADE OPENS MARKETS OF SIGNIFICANT SCALE

Kenya, Ethiopia, Rwanda, Tanzania and Uganda have of all factors of production, enhanced regional industrial been part of a broad push for enhanced regional development, improved agricultural productivity and integration in recent years, under the long-term value addition, promotion of regional peace and security, objective of boosting intra-Africa trade and exports, and institutional reform. enhancing economic integration and cooperation, and It has already been successful in some areas. Intra-EAC potentially, establishing a common currency and single trade is among the highest of all East African regional market similar to that of the European Union. economic communities, at 20% of total trade, although the Regional integration is supported by demographics AfDB reports that it remains susceptible to asymmetric – these five countries represent a market of over 270 shocks, while convergence of key macroeconomic million people, most of whom are young, which will variables that are used to assess readiness for an EAC support surging regional and domestic demand in the monetary union have progressed slowly. coming years. All five have also recorded elevated growth compared to the rest of sub-Saharan Africa Continental Progress over the previous decade, which has benefitted Other recent developments, including the establishment incomes and expenditure. With the launch of the of the AfCFTA, demonstrate the high potential for future African Continental Free Trade Area (AfCFTA) in integration. AfCFTA was signed in Kigali in March 2018, Kigali in 2018, East Africa’s big-five economies are set and entered into force in May 2019, when 22 signatories to reap the rewards of enhanced regional integration. ratified the agreement. As of March 2020, 29 countries had deposited their ratification instruments with the Regional Blocs African Union Commission, including Kenya, Ethiopia, Kenya, Uganda, Rwanda and Tanzania are members Rwanda, Tanzania and Uganda. of two important regional economic communities, Now in its operational phase, AfCFTA is set to including the East African Community (EAC), a become the world’s largest free-trade area by number regional intergovernmental organisation of six partner of countries once it is fully ratified, establishing a single states that was created in November 1999. Kenya, market for goods and services across all 54 signatories. Uganda and Rwanda are also members of the Common The growth potential is enormous: Africa’s collective Market for Eastern and Southern Africa (COMESA). GDP is forecast to reach $2.6 trillion in 2020, while the Ethiopia is not a member of the EAC or COMESA, and number of households with discretionary spending will trade between Ethiopia and its EAC neighbours remains hit 128 million in the same year and consumer spending low – according to the most recent data available from the set to reach $1.4 trillion as a result. By 2040, the World United Nations International Trade Statistics Database, Economic Forum estimates there will be 1.1 billion Ethiopia’s total annual trade in goods with Kenya, Africans of working age, further bolstering long-term Rwanda, Tanzania and Uganda is around $155 million. trade and integration prospects. The country is a net importer, and its trade deficit with these neighbours is substantial, at about $133 million. Spreading Out Although all five countries have recorded strong GDP Many of East Africa’s largest family-owned businesses growth in recent years, intra-regional trade in East Africa operate across multiple markets within the region remains low, with the African Development Bank (AfDB) and across the continent, using the collective market reporting it accounted for just 8.3% of total trade in 2018, to achieve economies of scale. Manufacturers of below the continental average of 14.5%, with growth consumer goods are especially likely to pursue cross- remaining flat over the previous five years. border expansion plans, with family-owned businesses The EAC has been pushing hard for maximum including Bidco, Ramco, MeTL, Madhvani and Bakhresa regional integration. Its priorities for 2017-21 producing well-known brand names across the region. include consolidation of the single Customs territory, Financial services providers such as I&M Holdings and infrastructure development, enhancing free movement ICEA Lion are likewise on the march across the region.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE INTERVIEW | MARKET LANDSCAPE 11 Banking on trade opportunities

Tarek Fayed, Chairman and CEO, Banque du Caire, (BdC)

Egypt’s interest in strengthening its ties to presence in both markets. Our team in Uganda is aware sub-Saharan countries has been rising in of the important role family-owned businesses play in tandem with the continent’s integration the country’s private sector and that of the wider East strategy. What role do banks have to Africa play region, and as such we are constantly improving in facilitating the expansion of Egyptian our product and service offering to meet their needs. companies across the continent? We are uniquely prepared to be the trusted partner of I believe that the banking industry needs to accompany the Ugandan businesses in their quest to approach the its corporate clients in the pursuit of deepening their Egyptian market, one of Africa’s largest economies, ties with the rest of Africa, in terms of both investment by assisting them in identifying trade partners and and trade. Indeed, banks must take an active role in fortifying their supply chains. order to benefit from the continent’s potential, which is still largely untapped. In your opinion, what are the main drivers We have big ambitions for Africa. Through Cairo for growth in the banking market over the International Bank in Uganda, which we acquired fully coming years and how is BdC preparing for it? in September 2018, we can offer trade finance facilities Addressing financial inclusion and introducing advanced to businesses looking to become active in East Africa digital banking capabilities are our areas of focus. We and introduce new market opportunities to our existing have a clear strategy of putting people first, which is clients. Our management team in Uganda identified the why one of the main steps that we took as part of the top business trends locally and proposed a five-year bank’s recent restructuring was to increase our training strategy centred on SME-lending, microfinance and digital budget. We are keen on expanding our knowledge banking integration. As one of the largest microfinance of the markets in which we operate so that we can lenders in Egypt, with a market share of 25%, we are well better position ourselves to facilitate trade discussions positioned to lead financial inclusion efforts in Uganda, between our cross-border clients. serving the under-banked, especially women and the young population starting small businesses. A listing on the Egyptian stock exchange is on the cards for the first half of 2020. How The first Egypt Trade and Invest week was held are plans for the IPO progressing? in Kampala, Uganda in February 2020, with the We are planning to offload 45% ownership of the bank, declared goal of reducing the trade imbalance through a primary and a secondary offering, and have and fostering B2B relationships between local completed our first roadshow to this end. Our focus businesses, the majority of which are family- is the primary offering, which will increase the bank’s owned. How well is BdC positioned to take capital in order to support our future expansion plans. advantage of these opportunities? Our current conversations with the investment banks We have indeed anticipated this trend in our strategy, revolve around 30% to 40% of the bank’s shares, which and at present no other bank has a better competitive at this early stage could be valued at between $300 advantage to cater to the increased trade and million and $400 million, making it the largest IPO cooperation between the two countries, due to our transaction to take place in Egypt since 2010.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

2 FOB THEMES 14 FOB THEME| PE POTENTIAL

STRONGER TOGETHER PRIVATE EQUITY OFFERS ROUTE TO GROWTH FOR BUSINESSES THAT ARE PREPARED TO CEDE SOME OWNERSHIP CONTROL

Inadequate capital has been cited as a major hindrance to run the business after the departure of the previous to growth of small and medium-sized enterprises manager. Ceding ownership partially or fully to an (SMEs), reducing the earning potential of a segment external partner complicates the succession plan as a that makes a significant contribution to GDP and new investor may introduce terms limiting the options. employment across East Africa. In Kenya, the region’s As a result, FOBs are often rigid because they want largest economy, SMEs contribute 31.4% of GDP and ownership to remain within the family. For those that get approximately 70% of jobs in the country. Around 70% to the negotiation table, entrepreneurs have a tendency of SMEs are family owned, employing 60% of workers to focus very narrowly on the investor that offers the in the small business space. highest amount for the least number of shares as they are Family-owned businesses (FOBs) looking to afraid of losing too much control of their business. capitalise expansion, have tended to turn to bank financing when needs outstrip personal means. A PE Concerns number of successful FOBs have made effective use On the other side of the table, investors can be of credit to scale their operations, becoming the well- concerned that FOBs tend to be run like families. known brand names that Relatives may be hired today span the region. Far without merit, executive fewer FOBs have looked to “The question for FOBs decisions are made during private equity as a fundraising family dinners and company channel, though it brings a looking to scale is this: money is rarely differentiated range of non-financial benefits is it better to hold on from the owners’ own. Simply alongside the monetary value put, the business is the owner of the investment and doesn’t to 100% of a million- and the owner is the business. come with a repayment Investors, however, require a schedule. An experienced dollar company or business to be fully formalised investor can be a useful 10% of a billion-dollar from the onset. This includes partner whose contribution having a properly constituted would result in tangible company?” board, policies and processes growth, but concerns on that are watertight, and HR both sides are holding back principles that guide staff and investment capital to grow these businesses. management. Businesses that successfully operate independently of the owner are more attractive to FOB Concerns investors as the line between where the family stops For FOBs, offering equity to an external investor and the business begins is clear and management is means sharing the company’s success with someone more accountable. else, a concept most owners tend to struggle with. Having been at the helm since founding the business, Combined Potential or having been passed the reins by a loved one, Increasingly, more business leaders are leaning towards makes ceding control an emotional affair. The fear of the latter, with 59% of Kenyan family business owners losing this control extends to the next generation as reporting an openness to private equity investment, FOB owners have likely been planning to hand over above the global average. The strong investment a successful venture to their children. Successors are interest in the East African region, which saw $2.4 groomed, educated and mentored from a young age to billion in private equity deals between 2013 and 2018, ensure they have sufficient managerial skills required should support FOB ambitions to grow their business.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE INTERVIEW | FOB THEMES 15 Creating value with institutional financing

James Mworia, CEO, Centum Investment

There’s often a fundamental gap between Kenya, pension funds and life insurance are the only the short-term exit horizons for PE and the institutional sources of capital, and their view of GPs long-term planning of an FOB. What’s your has been tainted by previous investments that didn’t take on bridging that gap and getting to achieve expected returns. Compounding this is the alignment of interests? illiquidity of the market, which means you have to be In terms of investment horizons, it’s not so much an issue in for a long period of time, whereas pension funds are of time for PE investors as it is clarity on how to create looking at returns in a 2-3-year horizon so they opt for value over and above what the owner could do on their real estate bonds or listed securities. own. The struggle comes in when there is an expectation GPs that can’t prove their value proposition have a mismatch between return on value and exit. This becomes hard time attracting investment, especially because LPs more difficult when the value-add of the investor is also have had negative experiences of delayed exits. Investors elusive, which is why the value an investor brings to the everywhere are looking for returns and PE fund managers table needs to be defined at the point of inception. The have to do a better job marketing Africa as competitive. key signal to family businesses considering an investment Centum previously relied exclusively on its own capital, partner should be real clarity on the new value creation but we’re joining the fray now and raising external funds, compared to the value if they continued to pursue their so we understand LP needs. Our strategy has been to own course. So if Centum came in, for example, we need back market leaders, helping them to be even better. to make a clear point that the firm’s business valuation Because the market is so competitive, we’ve found it would be better by the time of exit if they have us as a difficult to support scale-ups - those businesses coming partner. The founder or family needs to know what the in as challengers. Instead, our focus has been on larger value uplift from the partnership is and, crucially, if it is deals in the $30 million to $40 million range, where the sufficient to leave both partners better off at the end of scale is already proven and the risk is more manageable. the period. If the value is clear and expectations align around it, there is no gap to bridge. What is Centum’s outlook on the East African market in terms of business development Access to Limited Partner (LP) capital remains and the investment environment? a challenge for African General Partners (GPs), The outlook for East Africa is positive compared to and the data shows a significant dependency other regional blocs on the continent. Growth is robust on Development Finance Institutions. on the back of real opportunities in consumer-focused What will it take for African funds to scale spaces, with domestic demand largely driving growth commitments from private investors? in the absence of large-scale extractive industries, Liquidity is a big issue in the region and private compared to West Africa. Short-term challenges exist, equity has yet to be competitive enough as an asset of course, but the trajectory is positive in the long term, class, so the onus is on GPs to make a compelling which is what you look at when making investments. case that they’ll exit at a price that creates returns At Centum, we are optimistic about the long-term for both their investors and the business managers. In prospects of the market.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 16 FOB THEMES | INTERVIEW Unlocking equity value on the exchanges

Geoffrey Odundo, CEO, Nairobi Securities Exchange, (NSE)

Family-owned businesses make up a large companies receive training on corporate structuring, the proportion of Kenya’s corporate landscape, workings of capital markets and how to attract capital. but few have looked to the bourse to financeOnce comfortable with these processes companies can expansion. What are the difficulties of gettingdecide to join GEMS or the main exchange. FOBs to list on the NSE? There is a long-standing anxiety among FOBs with For companies seeking growth capital, how regard to listing, which is premised on a range of would you assess the choice between going factors. These include fear of more regulatory oversight, to the market or taking on private equity? strategy exposure to competitors, an opening of the Private equity is often aggressive and, due to risk books to the taxman and, most importantly, giving up perception in the private markets, I see too many local ownership. A family business I spoke with recently, for firms get under-valued when approaching this space. example, indicated they’d be willing to float 5% of their While private equity investors are focused on their company on the exchange, but the bourse imposes a return, through Ibuka we hope to support long-term 20% minimum. All these concerns, and the prospect of growth more in line with a company’s business plan. losing control, combine to make the process for listing Many companies here are sitting on big equity value, seem a bit too onerous. and with a few tweaks, they can unlock it.

Given these challenges, how has the NSE Integration of stock exchanges across the responded to encourage more firms to readyregional market is a priority for the EAC. What themselves to go public? progress has been made so far and how do To help encourage listings we established the growth companies stand to benefit? enterprise market segment (GEMS), an exchange The EAC securities regulators and market participants designated for smaller-sized firms to list with lower have each formed regional associations to progress capitalisation requirements. As a further incentive, small capital markets integration. The most outstanding and medium-sized enterprises received a tax amnesty achievement so far has been the cross-listing of when they listed. However, GEMS activity has not picked companies between the Nairobi, Uganda, Dar es up at the rate we were hoping, with firms continuing to Salaam and Rwanda exchanges. cite concerns around the reporting requirements and Cross-listing of enterprises with regional operations high corporate governance standards associated with it. is critical to enhancing visibility and brand recognition This has led to the latest innovation, the Ibuka platform, in foreign markets. This is key in enhancing market driven by the NSE in partnership with the Capital share and building brand loyalty. It also offers access to a Markets Authority. The platform provides a non-trading wider pool of investors, easing capital-raising initiatives acceleration programme for young growth companies, as well enhancing the liquidity of the company’s stock. giving them immediate visibility without the need for Cross-listing of family-owned entities would also listing. As of early 2020, Ibuka hosts 17 firms, including the support enhanced corporate governance standards to likes of Tusky’s and Blue Nile. Through the programme, meet the various requirements of the different exchanges. STAFFING & GOVERNANCE| FOB THEME 17

A HIRE CALLING MERIT IS BECOMING A STRONGER FACTOR IN FOB EMPLOYMENT PRACTICES

Job creation in East Africa is heavily reliant on family- Female Leaders Carve Out Their Own Space owned businesses (FOBs), both at the high end of the The leadership opportunities for women within FOBs are corporate ladder where large-scale conglomerates create somewhat limited as African families hold on to traditional jobs en masse, and at the other end of the spectrum values and beliefs on women and leadership. Men tend where a multitude of small and medium-sized enterprises to take up leadership positions within FOBs in general, each combine to encompass a sizeable workforce. according to the PwC “Global Family Business Survey 2018”. Male offspring are groomed from childhood and Blood Ties primed for pole positions while their female relatives, Family businesses that are in the first and sometimes even though they might end up in the business, tend to second generation are typically managed by the founder, be directed to lower-ranking positions despite having who often face pressure to recruit family members. similar experience and education levels. Such expectations hinder proper recruitment policies as The influence of traditional gender roles in the business recruitment centered around family ties can lead to roles world is reinforced by customary norms that favour men being filled by less qualified individuals. over women when it comes to the inheritance of estate, A high concentration of family members in assets and ownership. In Kenya, for example, the constitu- management roles is associated with various risks for the tion allows customary laws to apply to matters of personal business. It can drive away investors and reduce company law, including property inheritance. With customary law performance, competitiveness and value, if the team is governing at least 65% of land in Kenya and East Africa at not capable of executing the organisation’s business plan large, women are still waiting for equal inheritance rights. and objectives efficiently and successfully. Counteracting these barriers are a number of To improve investor attractiveness, performance and initiatives across Africa to foster and encourage female productivity, FOBs are increasingly shifting towards entrepreneurship, including Amber Grant, Stanchart professionalising their operations by recruiting top talent, Women in Business Competition, the Girlboss specialists and qualified professionals. “The shift away Foundation Grant, Invest2Impact, Women Start-up from a family-owned culture happened in 2007 when Competition and Business Woman of the Year. new professionals were brought in to key operational While male heirs continue to take the reins of management positions, including HR, finance, internal existing FOBs, women have been creating their audit and IT,” said Vijay Srivastava, Group CEO of GA own opportunities by starting their own businesses. Insurance, part of the Shah family’s I&M Holdings. “The According to the World Bank report, “Female impact was immediate: The firm’s growth doubled the Entrepreneurs: The Future of the African Continent”, market average in the following year.” Africa is the only region worldwide where more women than men venture into entrepreneurship. Implementing New Policies In Kenya, Tabitha Karanja, the founder and CEO of FOBs have also reported formalising their family Keroche Breweries, has rivalled East Africa Breweries employment practices, instituting policies that outline Limited’s dominance. Keroche was launched in 1997 the terms and conditions governing employment of family in Kenya and under her leadership has expanded to members, covering hiring, tenure and even dismissal. The Tanzania, Rwanda and Uganda. professionalisation of human resources means decisions In Tanzania, Victoria Kisyombe, founder of Selfina are no longer made on the basis of family affairs but are Limited has ventured into micro-leasing and alternative merit-based as defined in properly constituted policies. financing. Susan Mashibe, also in Tanzania, a qualified The emphasis on merit is not mutually exclusive with aircraft maintenance engineer has grown a successful the hiring of family members, and most FOBs in the region business in the aviation industry with VIA Aviation Services. invest heavily in the education and training of family With more women at the helm of new businesses members to ensure the next generation is competent to across Africa, the next generation of daughters should assume leadership roles in the future. have an easier route to the top of the corporate ladder.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 18 FOB THEMES | INTERVIEW Managing the next generation of wealth

Karim Anjarwalla, Atiq Anjarwalla, Managing Partner, Senior Partner, Anjarwalla & Khanna Anjarwalla & Khanna

of longer-term focused funds that are more tailored There is a widely acknowledged disconnect for FOB needs, such as AfricInvest, FMO and Ethos, between family-owned businesses and which all have tenures of seven to ten years, so their private equity. Given Anjarwalla and agenda is clear right from the get-go. Khanna’s work advising in these two spaces, how would you assess the accuracy of this Atiq: This has helped to make PE fashionable. When perception? What do you think needs to be certain founders look at their balance sheet and think done to bridge the gap? about growth, they are now more likely to consider that external financing can take the company to the Karim: There is a fundamental gap between PE and next level of growth. But they have their own priorities family business goals. Short-term exit horizons for PE for this, which requires clear, patient capital from a firms are not aligned with long-term family business foreign investor that respects the local firm’s market views, making PE cash inconvenient. That said, family knowledge. I have seen that local firms will pay a businesses that have come to scale are increasingly premium for patient capital. It leads to successful willing to bring in external funding. In Kenya debt has deals. been harder to get because of the interest rate cap so private equity has become more interesting. Given the potential you’ve seen in firms Atiq: Timelines are definitely an issue and firms looking to private markets to secure that take the decision to seek funding tend to be capital, how do you feel this aligns with more open to longer-term unconventional private the succession planning of regional FOBs? equity that looks beyond the five-year exit cycle. The What challenges do these businesses face to markets we’re working in are not liquid, so having to ensuring a successful transition? focus on payback after three to five years, as opposed Atiq: I do a lot of family constitutions and structurings, to focusing on growth, is not an attractive proposition. so I’ve seen all the issues. At a very high level, it goes I should add that the disconnect is not exclusively one of two ways: either the kids join the business or an issue between portfolio companies and PE firms, they don’t, and each of these situations brings its own but can also be an issue among PE firms investing set of challenges. together. I have often found that insufficient thought is given to the alignment between shareholders. If Karim: We are increasingly seeing many kids, there’s no commonality with regard to the investment especially in the millennial generation, who want to thesis - one camp needs to sell in as short a timeframe leave. In these instances, the generational conflict as possible, while the other can wait an extra three leads to wider family conflict, so selling the company years - there will inevitably be conflict in terms of becomes a good solution. strategy as each is working to a different goal post. Atiq: That’s true, but the question for the founder This needs to be addressed. then becomes how do I exit? They can sell outright Karim: One change we’re seeing is the emergence or go for a joint venture, but what’s going to bring

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE INTERVIEW | FOB THEMES 19

the most value? And let’s not suppose that things are Atiq: This impedes expansion because being tax easy for the founders whose children do come back to compliant makes a company more investable; when work at the company. They face a dilemma regarding doing due diligence, there can’t be a question theBor nextsam, generation’s nihilis aliquiandias place in the suntiis business, cus, which qui doloreiciaregarding adtwo qui or netthree quiditatus books. 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EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 20 FOB THEME| FEMALE LEADERSHIP

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE INTERVIEW | FOB THEMES 21

Investing for impact

Seema Dhanani Head of Office & Coverage Director, Kenya, CDC Group Plc

Development Finance Institutions (DFIs) play enhancing the professionalism around ownership, roles an important role in supporting the expansion and succession with openly communicated plans will of the private sector across African markets. help to minimise potential future disruption. Third, the What are the CDC’s investment priorities? alignment of personal and professional goals and values CDC Group is the world’s oldest DFI with over 70 years of which are openly communicated and discussed to reach experience supporting the sustainable, long-term growth a common purpose and vision. of businesses in Africa and South Asia. By investing for impact, CDC aims to help countries in Africa solve their CDC offers both equity and debt financing. development challenges and to build thriving communities In your experience so far, which has been that provide sustainable opportunities for all citizens. more sought after and which has been the The markets we operate in have always been more successful type of financial support? challenging. We prioritise sectors that help enhance CDC provides flexible capital in all its forms, including development, including infrastructure, financial services, equity, debt and mezzanine, to meet businesses’ needs. manufacturing, food and agriculture, healthcare, educa- In East Africa, the preference for financing has varied tion and construction. In January 2020, we announced according to the sector. For example, in manufacturing an additional £2 billion for African businesses over we see a preference for debt, while in agriculture we two years, with a focus on fighting climate change, feel that equity is often a better option. Successful empowering women and creating new jobs. financial support is based on structuring the most appropriate facility for a family business according to Family-owned businesses (FOBs) make up a its unique position and ambitions. large portion of the private sector landscape and are key to creating jobs. What challenges What is the CDC’s outlook for investment do these firms face in scaling up and how opportunities in the FOB sector going forward? can these be overcome? FOBs are critical drivers of the economy in many of the Family businesses are the lifeblood of most economies, and markets we operate in and we continue to believe that they are even more prevalent in our markets. Internally, their success is crucial to drive impactful development. family businesses often face challenges including At CDC, we believe there is immense value in partnering governance, succession, strategy and structure. Scaling with FOBs. They have roots in their local economies, up requires these issues to be addressed. Having worked entrepreneurial spirits that encourage continuous across numerous family businesses in the region, the development, and they are sensitive to the impact they nuances of each family allow for a variety of approaches. have on their local communities and environments. My top three mechanisms would be as follows. There are also challenges to overcome when investing First, the creation of structures such as a in FOBs which are unique to each family and business. constitution, council or charter around the family CDC’s history in the region, patient capital and impact and separately around the business that allow them focus, ensures we can support family businesses into to co-exist albeit with a degree of separation. Second, their next generation and beyond.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 22 FOB THEMES | INTERVIEW

A view from the top

Flora Mutahi, Founder and CEO, Melvin Marsh International

One in four African women have started or Small and medium-enterprises (SMEs) are manage a business, which is the highest the driving force in developing economies, percentage in the world. As a business leaderbut they face a range of challenges. Given yourself, what’s your take on opportunities the number of female-led SMEs, women are for female entrepreneurs? What challenges particularly affected by these. What are the do they face? most persistent issues for small businesses? Our local markets present many opportunities for Even more than access to finance, a bigger problem female entrepreneurs and there are a lot of small-scale for SMEs is finding the right business model that hits businesses run by women. But for many women these on a market opportunity. We need to challenge the businesses are a side hustle and most don’t move up youth to figure out what value addition they are able to from micro enterprises. Culturally, it is more difficult bring to the market. Overregulation is another problem for a woman to be taken seriously as a businessperson, for businesses, and SMEs in particular. The complex especially with regards to securing financing. When regulatory framework creates a disincentive for SMEs. starting my business, I had to get external funding It is often cheaper to remain informal because the through an IFC-guaranteed loan that was then matched amount of resources needed to comply with all the by my mother. regulations makes a business proposition less viable. Another aspect of this cultural discrimination is This is counter-productive as we need small businesses manifested in women’s apetite for risk. Oftentimes to scale to reach their potential and contribute to women don’t come out ready to take on the risk to further economic growth. advance their business. They have the initial drive, but few examples of successful scaling up. For those companies that do scale, what Despite the hurdles, things have moved on potential do you see for equity funding to substantially since I started Melvin Marsh more than support expansion? 20 years ago. Some aspects of the social structures in The issue with bringing in external equity is not Africa give women advantages. Home help is far more necessarily dilution, but the feeling that a business affordable than in Europe, for example, so African owner is being taken for a ride. There’s often a shark women have an easier time juggling the demands of atmosphere among private equity firms, which doesn’t work and home life. There are a lot more opportunities inspire confidence in their motives. Money is available, now. Women can do it, but not enough women are. of course, but it’s about value. For me, a strategic There’s a need for mentorship, coaching, incubators to partner is a more interesting proposition, especially give women the support they need. Having role models as we look to take Melvin’s to the next level. We need is an important part of supporting women to realise to get into export markets seriously and I’d like to set their business dreams. Our mentorship programme up offices in key markets. My problem is not about pairs retirees with young entrepreneurs to help women money, but bringing in new expertise could be useful rise to the top and stop being flower girls. to meeting our business objectives.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE SUCESSION PLANNING | FOB THEMES 23

PLANNING FOR THE FUTURE PUTTING NEXT-GENERATION LEADERS AT THE HELM

Studies of family-owned businesses (FOBs) show that Foresight is crucial, but this alone is not always succession planning remains underutilised, with just a enough. It is not uncommon to find FOB owners with quarter of Kenyan FOBs reporting they had a formal no heirs to replace them, either because they have no plan in place in a 2019 survey by Deloitte. The most children or the children have no interest in running the popular way of handing over businesses to the next business, leaving the founder with limited avenues to generation, it appears, is ‘by doing nothing’. This is a turn to while sourcing a successor. result of a collective desire to avert thoughts of the Capability of the successors can also be a hindrance founder’s exit, retirement or death. It is almost seen as to proper succession; just because a business is family- a taboo to plan for death when they are still alive. It is a run does not mean that all members of the family will daunting and emotional affair best kept at the back of have the ability to run it. When the successor has the mind. But ignoring succession does a disservice to not been properly identified, groomed, trained and FOBs: the most common reason small businesses fail mentored, the succession path becomes blurry and is lack of capital, followed by lack of a succession plan. challenges arise. “We all know that one day we are going to die but we Successful succession planning isn’t simply about new never really plan for it,” Joseph Okelo, Chairman of the executives taking up the mantle, but rather of new leaders Association of Family Business Enterprises (AFBE) carrying the existing vision and developing it further. and former Director of Makini Schools in Kenya, said. Examples of effective second-generation leaders abound, “We act like we are going to live forever. Each day we with younger leaders often bringing formal business tell ourselves I’ll do it tomorrow, yet tomorrow never training and modernising practices to good effect. comes,” Okelo said. Mohammed Dewji in Tanzania, for example, is The danger is that future leaders will struggle with credited with transforming MeTL, the company set ownership and management battles due to lack of a up by his father, into a pan-African conglomerate. concrete succession plan instituted by the founders. Ugandan conglomerate Madhavani Group is in its Research has shown that the majority of estates lose fourth generation of family leadership, which has seen assets - along with family harmony - in the wake of a the business grow from small-scale trading roots in transition. the 1910s to a large-scale enterprise with operations Having a structured plan in place can help to keep across multiple sectors, including, agriculture, a business on a more even keel at what is likely to be a manufacturing, financial services, health and tourism. difficult time for the family at its helm. In Ethiopia, Mullege Plc, established in 1953, grew “When we lost dad in 2004, it took a toll on the whole from a middleman supplying coffee to exporters into family and especially mum who was his co-director, but a major player across the full coffee value chain under we had a company to run. Most FOBs die soon after the the leadership of the founder’s son. founder dies, but we didn’t let that happen to Makini Succession planning increases the availability of Schools. A proper succession plan is what kept the experienced and capable leaders that take the helm family and the family business running,” Okelo said. and lead the family business into its future.

Joseph Okelo, Chairman, Association of Family Business Enterprises in Kenya “A proper succession plan is what kept the family and the family business running…”

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 24 FOB THEMES | INTERVIEW

Passing the torch

Vinay Dawda, Managing Director, Britania Allied Industries Ltd.

Succession planning can be a stumbling they come for holidays I encourage them to spend block for family-owned businesses. Whatpart of their time in the company, learning the ropes. was your experience of coming into the They work within a particular department while they company? are home and then leave, repeating the process with a The House of Dawda group began its activities different business unit on the next visit. This process in the East African region in 1962, and today has also helps them in their degree programme, so we see manufacturing units for biscuits and fruit juices, as well short- and long-term gains. as arms for distribution and real estate. As managing director of Britania, I am responsible for the Ugandan In the medium term, what are your growth operations, working with a team of professionals and plans for the company? Would the firm technocrats who form the core of the House of Dawda. consider taking on an equity partner to help When I joined the business in 1990 it was not through finance future expansion? any structured succession The group had dabbled in a planning, I was simply told to variety of business activities start work. My responsibilities “When I joined the over the years which have and the workload increased business in 1990 it included manufacturing and over time, giving me hands- trading of pharmaceuticals, on experience. Fast-forward was not through any cosmetics, cotton, salt and another 30 years in the structured succession general merchandise, as well business’s lifespan and things as real estate development. are a bit different. Now we planning, I was simply Today, our operations focus have a structured succession told to start work...” on the manufacturing of plan wherein a family member biscuits, juices and sauces, joining the team has to be distribution of which covers more formally inducted into the business. They report Kenya, Uganda, Tanzania, Rwanda, Burundi and the to the relevant department head and receive training in Democratic Republic of Congo. all areas of business. Family members earn promotions In Uganda, the company recently invested in a new on merit and generally rise through the ranks over a juice bottling line, and in the next 5-10 years there are short period of time. plans to expand the fruit-handling processing capacity by investing in a new plant. The Kenyan arm of the Thinking ahead, are you hoping one of your group, Manji Foods, has plans to set up a new factory children will lead the company in the future? for the manufacturing of biscuits, which would enable How are you helping to prepare them to take us to offer new varieties of products. House of Dawda on a leadership role? can finance these expansions we have no immediate That is the will for sure. They will have to follow the plans to take on any equity partner, but it’s something same path to be inducted into the company. Whenever that may be considered in the future.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE COUNTRY3 DEEPDIVES KENYA 26 COUNTRY DEEPDIVES | KENYA

REGIONAL HUB KENYA

As the business and finance hub of East Africa, Kenya Performance benefits from a track record of strong macroeconomic Non-agricultural sectors are also expanding rapidly. growth across multiple sectors. Tourism, information Growth in the tourism sector, for example, rose by and communication technology (ICT), transport, 16.6% in 2018, demonstrating the enduring appeal of and construction have driven robust expansion Kenya’s stunning landscapes and big game safaris, and and diversification, while the Big Four economic dovetailed by rapid recent growth in MICE (meetings, development agenda has ushered in a new era of incentives, conferences, exhibitions) activities. industrialisation, manufacturing and job creation. ICT is another major economic driver, with growth The country’s annual GDP growth has been elevated averaging 10.6% annually since 2016, supported by in recent years, averaging 5.8% between 2014 and innovation in the mobile segment, as well as strong 2018, and rising from 4.9% in 2017 to hit 6.3% in 2019. gains in internet usage and e-commerce activities. The The African Development Bank projected GDP growth sector expanded by 11.4% in 2018 alone. to hit 6% in 2019 and 6.1% in 2020, while the World The transport and storage sector grew by 8.8% in Bank put growth at 5.8% and 6% in the same period, the same year, electricity and water supply by 7.9%, meaning Kenya will remain one of the fastest-growing and construction by 6.6%. economies in sub-Saharan Africa. Although it lagged behind agriculture’s 6.4% growth, manufacturing expansion hit a five-year high of 4.2% in Growth Sectors 2018, while wholesale and retail growth rose to reach Agriculture is the largest single sector of the economy, 6.3% in the same year. with three of the country’s top exports - horticultural The service economy is also performing well: the goods, tea and coffee - arising from the sector. The health sector expanded by 7.2% in 2018, financial Kenya National Bureau of Statistics reports that agriculture accounted for 34.2% of GDP in current Kenya FOB Sector prices in 2019, although other estimates put the sector’s GDP contribution at between 25% and 27%. It also plays a critical role in the country’s fast-expanding food and beverage market, supported by a burgeoning middle class and rising domestic and regional demand for processed and packaged products. 299 At the same time, the country is in the midst of rapid FOBs economic diversification under the Big Four agenda, unveiled in 2017, with services and technology set to FOBs by Sector play a key role in future development. Transport 4.3% The strategy focuses on manufacturing, affordable Services housing, healthcare, and food and nutrition security as Retail 1.3% Agriculture 8.4% 8.4% critical economic drivers, with the target of accelerating Real Estate Construction GDP growth to 7% annually in the coming years, 0.7% 10.0% Oil & Gas creating high-quality jobs and reducing poverty in the 6.7% process. Under the plan, the government is moving Mining Consumer Goods & Metals 8.7% to establish new special economic zones, upgrade its 0.7% transportation infrastructure, and improve the ease of Leisure Financial Services & Tourism 4.7% doing business. 1.3% Information It is already making progress, with Kenya’s Doing Food & Beverages Technology Business 2020 score rising to 73.2, from 71 in 2019, 1.0% 16.4% pushing it to 56th place out of 190 countries surveyed Industrial Manufacturing by the World Bank. This represents a jump of five spots 21.7% Healthcare from its rank of 61 in the 2019 edition of the report. 4.7%

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COUNTRY DEEPDIVES 27

services and insurance by 5.6%, public administration Real GDP growth, 2014-18 (%) by 6.1%, and professional, administrative, and support 8.0% services by 5.9%. Education rose by 5.7%, while the real estate sector recorded 4.1% growth. 6.0%

4.0% Family-Owned Businesses Family-owned businesses (FOBs) play an important 2.0% role in Kenya’s economic landscape, making up close 0.0% to half of the country’s large-taxpayers list and a more 2014 2015 2016 2017 2018 significant share of small and medium-sized enterprises. A number of the country’s most well-known brands GDP by Sector, 2018 (%) continue to be run by the families that started them, with founders and subsequent generations of leaders in many cases overseeing cross-border expansion and diversification. The industrial manufacturing and Primary food and beverage sectors have the highest number 37.5% Tertiary of leading FOBs, followed by construction and retail, 45.8% with entrepreneurs tapping into the demand driving Kenya’s economic growth. The services sector at large is also a hot-spot for FOBs, led by financial services, Secondary unsurprising in the financial centre of East Africa. 16.8%

Company Headquarters by County Estimated Annual Revenue Breakdown

$500m 0.3%

$100m100m - $500m 9.4%

No. of Companies: 1 2-10 $25m - $100m100m 27.8% 11-20 21-30 200+ $10m10m - $25m 28.8%

$5m - $10m10m 24.1%

90% of FOBs represented FOB Employee Range

BAND A: 1-10 BAND D: 201-500 BAND G: 5001-10000 BAND B: 11-50 BAND E: 501-1000 BAND C: 51-200 BAND F: 1001-5000

0% 25% 50% 75% 100%

64% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 28 COUNTRY DEEPDIVES | KENYA

BUILDING UP CONSTRUCTION AND MANUFACTURING

Supporting industrialisation is a priority for the billion between 2010 and 2018. Manufacturing made government, enshrined in Vision 2030 which aims to up approximately half of the secondary sector’s GDP turn Kenya into an industrialised nation. This industrial in 2018 ($6.8 billion), though its growth - which nearly transformation is the foundation for achieving middle- doubled over the decade to date - was overshadowed by income status, with the manufacturing sector seen as a the construction sector, which expanded by over 200%. key route to add value to the country’s wealth of natural resources and create jobs for the growing workforce. Strategies Developing the infrastructure needed to enable growth The inclusion of manufacturing in the Big Four has been a challenge, with a shortfall in transport and development agenda aims to ensure the sector gets electricity requirements creating bottlenecks that have the necessary investment to reach its potential, and constrained growth. the construction of special economic zones, export The industrial sector is the smallest contributor to the processing zones, industrial parks and clusters has economy, at under 17% in 2018, but growth over recent proved a useful incentive. The roadmap for the sector’s years suggests progress is being made. Figures from the development is outlined in the Kenya Industrial African Development Bank show the industrial sector Transformation Programme, which sets out a five- GDP jumped by nearly 150%, from $5.5 billion to $13.6 pronged strategy to tackle six challenges hindering

Construction and Manufacturing Family-Owned Businesses in Kenya

Estimated Annual Revenue Breakdown

TOTAL: Industrial Manufacturing 95 Companies Construction 32% Of FOB universe

100%

$100m - $500m 5

50.0% 50.0%

$25m - $100m 18

33.3% 66.7%

$10m - $25m 27

59.3% 40.7%

$5m - $10m 37 Construction

92% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COUNTRY DEEPDIVES 29

sector growth that cover infrastructure shortages, buildings, engineering structures and road construction. workforce development, operational costs and Growth has consistently been in the double-digits since inputs, market access and investment attractiveness. 2010, peaking at over 25% in 2017 before falling back to Small and medium-sized enterprises are singled out 6.6% in 2018. Transport and housing are key segments as a sector in need of support to meet development driving expansion in the sector. Expenditure on roads goals, alongise wider moves to create a more enabling increased by 23% to $1.8 billion in 2018, while works environment across the board. Targeted sectors include to extend the Standard Gauge Railway (SGR), the light manufacturing sectors, particularly textiles and initial section of which opened in 2017, are expected other agro-processing segments that make use of Kenya’s to maintain a steady flow of contracts to the sector. In significant agricultural bounty. Construction materials are the housing segment, the 53% rise in the government’s another area of focus given both the strong growth in the housing expenditure should see a step change in building sector on the back of infrastructure demands. construction activity as the state works to reduce the supply gap in accommodation, especially at the Construction affordable end of the market. The construction industry in Kenya is in a growth Rising levels of construction works has seen an increase phase, led by an increase in commercial and residential in the consumption of cement from 5.87 billion tonnes in 2017 to 5.95 billion tonnes in 2018, marking an increment of 1.5%. The cement industry is dominated by eight key players, three of which are listed on the Nairobi Securities Company Headquarters by County Exchange, and several of which are family owned.

Family-Owned Businesses No. of Companies: Family-owned businesses (FOBs) in the manufacturing 1 and construction sectors represent nearly a third of 3-6 the Kenyan FOBs listed here. Within this grouping 79 industrial manufacturers are the dominant force, comprising two-thirds of the total. Manufacturing firms are particularly well represented in the highest revenue bands, with all of those estimated to be in the $100 million - $500 million band belonging to the sector. The largest proportion of manufacturing and construction firms fall into the $5 million - $10 million band, at 37% of the total. Basic materials and industrial products represents the most common segment for FOBs, with Segments of Operations 50 companies operating in this space. Another 23%

100% provide materials or building and design services in the construction sector. Only 20% of the companies are Multi-Segmented registered outside of Nairobi county - six in Mombasa 75% Machinery and Equipment and the remainder spread across six other counties. Chemicals Industrial Sector GDP Breakdown, 2018 (%)

50% Basic Materials and Industrial Products Electricity, Gas & Water Construction Materials 15.8% 25% Manufacturing Construction and 49.5% Design Contruction

0% 34.7%

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 30 COUNTRY DEEPDIVES | KENYA CONSTRUCTION AND MANUFACTURING PROFILES ADAPTED FROM ASOKO’S DATABASE

Blowplast Limited PRIVATE EQUITY BACKED Private | Kenya, Nairobi | Industrial Manufacturing Chandaria family

Blowplast Limited is involved in the manufacture of plastic products 2017 for use in pharmaceuticals, paints, edible oils, cosmetic products, INVESTS lubricants and chemicals, as in well as the power sector. Its client base includes Total Kenya, 1996 Bidco, Brookside Dairies and Interconsumer Products, amongst Via Kibo Fund Sector: plastic packaging others, and it exports to 18 regional countries. The company was established in 1996 and is based in Nairobi, Kenya.

Davis and Shirtliff Limited LONGEVITY Private | Kenya, Nairobi | Industrial Manufacturing Davis family Leadership & Ownership

Davis and Shirtliff Eddie Alec Davis Partnership Dick Davis Devji becomes Limited is an industrial between Shirtliff sells replaced Shingadia David Chairman. Eddie Davis shareholding as director sells Gatende David manufacturing company and Dick to Devji by Alec shareholding appointed Gatende Shirtliff Shingadia Davis (son) to Alec Davis MD becomes CEO in Kenya. It provides water pumps, boreholes, swimming pools, water 1946 1970 1982 1990 1996 1998 2001 2004 2008 2016 2017 2018 treatment, and generators and solar equipment. Subsidiary Subsidiary Kenya Davis and Shirtliff Limited opens opens Branches was established in 1946 = 38

and is based in Nairobi, Davis & Shirtliff founded in Kenya Subsidiary Subsidiary Subsidiary Kenya, with subsidiaries in opens opens opens six East African countries. Key Regional Developments

Devki Group of Companies REGIONAL REACH Private | Kenya, Nairobi | Industrial Manufacturing Narendra family

Devki Group of Companies comprises six subsidiaries working in the manufacturing sector, predominantly in the building materials segment, though it also has in interest in aviation. These are: Devki Steel Building Packaging Aviation Mills Limited, MaishaMabati Mills Limited, Materials National Cement Company Limited, National Cement Company Uganda, Maisha Packaging Company Limited and Northwood Agencies Limited. The company Steel Roofing Cement has been in operation for more than three decades and is headquartered in Nairobi with operations in Kenya and Uganda.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYAKENYA || COUNTRY DEEPDIVES 31

HACO Industries Kenya Limited LARGE EMPLOYER Private | Kenya, Nairobi | Industrial Manufacturing Kirubi family

HACO Industries Kenya Limited is a manufacturer and distributor of fast-moving consumer goods. The company has a key focus on stationery, hair care products, skin care products, home care 1974 2008 2017 products and food products, which are distributed throughout HACO South Kirubi East Africa and the COMESA Industries African Tiger buys back founded by Brands buys shareholding; region. The company was Chris Kirubi 51% stake; rebranded becomes to HACO established in 1974 and is based Haco Tiger Industries Brands in Nairobi, Kenya.

Kenafric Industries Limited PRIVATE EQUITY BACKED Private | Kenya, Nairobi | Industrial Manufacturing Gulabchand family

Kenafric Industries is a manufacturing company in 2017 Kenya. The company produces confectionery, food, footwear and ACQUISITION stationery products. Its products of minority stake in include bubble gum, lollipops, toffees, juices, icing sugar, candies, 1987 stock cube, and curry powder. & The company also produces Sector: FMCG slippers, gumboots, canvas, and exercise books. Kenafric industries was established in 1987 and is headquartered in Nairobi, Kenya.

Rai Group Limited DIVERSIFIED Private | Kenya, Eldoret | Industrial Manufacturing RAI Rai family GROUP

Rai Group is an agro-forestry and agro- processing company in Kenya with interests Construction Food & Industrial Real Agriculture / Financial Conglomerate in a number of segments and a regional Beverages Manufacturing Estate Agro processing Services reach. It manufactures wood items through Rai Limited and operates saw milling via Timsales. It mills sugar via Western Kenya Sugar Company and Sukari Industries Tulip Rai Tarlochan Properties Investment Singh Rai in Kenya and Kinyara Sugar in Uganda. Limited

Additionally, it has interests in foods and Rai Expo Pan Paper Park mills beverages via Menengai Oil. It also has Limited business in wheat farming, horticulture and real estate. It operates in Uganda, Tanzania, Raiply and Malawi. Rai Group was established in 1970 and is based in Eldoret, Kenya.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 32 COUNTRY DEEPDIVES | KENYA

EXPORT EARNER AGRICULTURE AND FOOD & BEVERAGE

Kenya’s large, diversified agriculture sector is a major during the first six months of 2019, over 60% of the export earner and the largest single sector of the previous full-year figure. economy. It accounts for 24.5% of direct GDP, 65% of total exports and the vast majority of employment Leading Goods – between 75% and 80% by most estimates. The Horticulture is Kenya’s largest agricultural export earner, country is a major global exporter of horticulture, and the country is a leading global exporter of fresh-cut tea, and coffee, with export earnings rising in recent flowers. Floriculture is by far the largest sub-segment in years, despite a slowdown in coffee production. horticulture, accounting for 66% of exports by value in The value of Kenyan agriculture more than doubled 2018, followed by vegetables (26%) and fruit (8%). between 2014 and 2018, with the Kenya National Horticulture has been a major growth driver in recent Bureau of Statistics reporting that the sector’s GDP years, helping the industry to offset losses in the coffee in current prices rose from $14.6 billion in 2014 to sector, with the Fresh Produce Exporters Association of just over $30 billion in 2018. The growth trend looks Kenya reporting the total value of horticultural exports set to continue, with $18.9 billion of output recorded jumped by 33.3% year-on-year in 2018 to reach $1.5 billion.

Agriculture and Food & Beverage Family-Owned Businesses in Kenya

Estimated Annual Revenue Breakdown

TOTAL:

Agriculture 74 Companies

Food & Beverage 25% Of FOB universe

14.3% 85.7%

$100m - $500m 7

38.9% 65.4%

$25m - $100m 27

58.8% 41.2%

$10m - $25m 17

75.0% 25.0%

$5m - $10m 16 Construction

91% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COUNTRY DEEPDIVES 33

Kenya is also the world’s leading exporter of black government achieve its target of reaching 7% annual tea, and the country’s tea sector performed well in GDP growth in the coming years. 2018. The total value of exports rose by 9% to hit Innovation and mechanisation will be critical to $1.37 billion, while the total volume of exports rose reaching these goals, creating notable new opportuni- by 14.2% to about 475 million kilograms. ties for investment across the agriculture value chain: While still a pillar of agriculture exports, low global high rainfall areas comprise 10% of the country’s ar- prices and poor growing conditions have weighed able land, which produces 70% of its national com- on the coffee sector. The Nairobi Coffee Exchange mercial agricultural output, demonstrating significant reports that export earnings fell by 20.2% at the end potential for future expansion, as well as investment of the 2018/19 crop year to hit $99.55 million. opportunities in irrigation and mechanisation. As the government moves to implement its Big Four economic development agenda, agriculture will Food & Beverage Sector play an important role in transforming the economy, The food and beverage industry is also benefiting with value-added food processing set to help the from middle-class growth and rising domestic and international demand for Kenyan products. At present, Kenya imports more than 72% of consumer-oriented agricultural products. Imports rose

Company Headquarters by County by 55.7% between 2015 and 2018 to hit $450 million, and were forecast to jump by 11.1% in 2019 to reach $500 million. At the same time, exports of consumer-oriented food products have also been increasing, growing from $2.42 billion in 2015 to an estimated $2.8 billion in

No. of Companies: 2018 and projected to have reached $3 billion in 2019, 1 illustrating the ongoing potential of intra-regional trade 2 for the country’s burgeoning agro-processing sector. 6 10 Family-Owned Businesses 12 29 Family-owned businesses (FOBs) are prominent within the agriculture and related food and beverage sectors, which together represent the second-largest concentration of leading FOBs in Kenya. These firms comprise a number of large-scale players in what is generally a fragmented industry, with close to half of Segments of Operations FOBs in this space estimated to earn more than $10 100% million a year. The concentration of food and beverage firms increases in higher revenue bands, with fewer agricultural companies in top revenue bands. Food Multi-Segmented 75% production is the most common segment for FOBs, Beverages with 28 companies primarily operating in this space, Food followed by beverages, with 15 companies. Another Investment 50% Companies 23 companies cross-sect a number of segments in Floriculture the industry, reflecting the scale of these outfits. The Animal Farming geographic breakdown of these sectors is more diverse 25% Crop Farming than most, reflecting the need to be close to growing regions. Nairobi continues to be the main centre,

0% hosting 40% of firms in the agriculture and agro- processing sectors.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 34 COUNTRY DEEPDIVES | KENYA AGRICULTURE AND FOOD & BEVERAGES PROFILES ADAPTED FROM ASOKO’S DATABASE

Bidco Africa Limited Private | Kenya, Thika | Food and Beverages REGIONAL REACH Shah family

Bidco Africa is a manufacturing company producing a wide range of fast-moving consumer goods including edible oils, Over 50 Products baking powder, detergents and other cleaning agents, personal Edible oils & fats care products and animal feeds. Founded in 1970, Bidco Africa Food & beverages has subsidiaries in Uganda and Personal care & Tanzania and a distribution network hygiene that spans 17 countries across East, Central and Southern Africa. Bidco Animal feeds is headquartered in Thika, Kenya. Distribution Network

Kapa Oil Refineries Limited LONGEVITY Private | Kenya, Nairobi | Food and Beverages Shah family

Kapa Oil Refineries is a diversified manufacturing company in Kenya. noodles Its products include cooking fats, edible oils, laundry soaps, margarine, glycerine and soaps margarine, baking powder, detergent powder noodles, laundry soaps, detergents and personal cooking fats and edible oils

care products. Kapa Oil salt packaging and baking powder manufacturing Refineries was established as Karania Packers in the 1960 1970 1980 1990 2000 2010 2020 1960s and is headquartered Product launch timeline in Nairobi, Kenya.

Kenya Sweets Limited LONGEVITY Private | Kenya, Nairobi | Food and Beverages Shah family Kenya Sweets Limited (KSL) is a family-owned 1st Generation 3rd Generation company that produces sugar in various forms as well as a range of confectionery products. Established in 1943 and Zaverchand grandson Preeyesh based in Nairobi, Kenya, K Shah Shah Kenya Sweets exports 40% of its products to the EAC region and Founded Kenya Sweets Director of KSL, manages (KSL) alongside his the company alongside has three regional brothers in 1943. his siblings and cousins. subsidiaries.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYAKENYA || COUNTRY DEEPDIVES 35

Keroche Breweries Limited Private | Kenya, Naivasha | Food and Beverages FEMALE OWNED Muigai family Keroche Breweries Plant is a manufacturing Start-up Investment refurbishement capital of of $11.6 company in Kenya project: $5000. million. producing alcoholic $55.5 million. beverages including wine, beer, lager and spirits. Keroche 1997 2007 2008 2009 2013 2015 Breweries was established in 1997 and is based in Naivasha, Kenya. Fortified fruit Ready-to-drink Beers wine gin and vodka Summit lager Initial production and Summit of 200 litres Malt

Mayfair Holdings Limited DIVERSIFIED Private | Kenya, Kisumu | Food and Beverages Gilani family Subsidiaries

Mayfair Holdings Limited Segment is a Kenyan-based parent corporation of a number of subsidiaries spanning the food Food & beverages Hospitality and beverage, agriculture, real Mayfair estate and hospitality sectors. Holdings Its brands include Mayfair Bakeries, which produces Agriculture Real Estate Sunblest bread, Imperial Hotel Express, Mayfair Estate, and Mayfair Peche Foods Limited. It is Estate based in Kisumu, Kenya.

Veg-Pro Group DIVERSIFIED Private | Kenya, Nairobi | Agriculture Patel family Division Veg-Pro Group (VP Group) is a Sector producer of fresh produce and flowers in Kenya. It comprises Leisure* six divisions: agriculture, trading, services, logistics, leisure, and Services power and renewables. Within the Power and agricultural space it operates in Renewables horticulture and floriculture. The Trading group is expanding its operations Logistics to Ghana, Ethiopia and the UK as Agriculture an international organisation. It is based in Nairobi, Kenya.

*division coming

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 36 COUNTRY DEEPDIVES | KENYA

DYNAMIC MARKET CONSUMER GOODS & RETAIL

Robust macroeconomic growth, rising consumer on the back of increasing consumer purchasing power: purchasing power and an emerging middle class have GDP per capita in purchasing power parity rose by made Kenya’s retail and consumer goods sector one of 54.8% over the previous decade, from $2236 in 2009 to the most dynamic in East Africa, with a recent surge hit $2867 in 2014 and $3461 in 2018. Household final of formal retail space demonstrating its considerable consumption expenditure rose by 5.8% in 2018, and investment potential. As international brands move to consumption has trended steadily upwards for more establish a presence in the market, the supermarket than a decade. World Bank data shows that household and mixed-use retail real estate segments are well- final consumption expenditure in current US dollars positioned to sustain strong long-term growth. more than doubled between 2009 and 2018 to hit Kenya’s macroeconomic growth has been strong, $71.88 billion, from $28.23 billion in 2009. with average annual GDP hitting 5.6% between 2014 Foreign direct investment (FDI) in the sector has been and 2018, while the World Bank estimated GDP growth strong on the back of increasing demand, with liabilities in would reach 5.8% in 2019. This has had a profound wholesale and retail trade standing at $1.04 billion in 2017, impact on retail growth, which stood at 6.3% in 2018. equivalent to 15.5% of total FDI in the country. Wholesale and retail investment was the third-largest sector for FDI, Consumption & Investment surpassed only by financial and insurance activities, at Kenya’s middle class has risen as a major growth driver $2.68 billion and manufacturing, at $1.28 billion.

Consumer Goods & Retail Family-Owned Businesses in Kenya

Estimated Annual Revenue Breakdown

TOTAL:

Consumer Goods 51 Companies

Retailers 17% Of FOB universe

50.0% 50.0%

$100m - $500m 6

57.9% 42.1%

$25m - $100m 19

36.4% 63.6%

$10m - $25m 11

41.7% 58.3%

$5m - $10m 12 Construction

94% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COUNTRY DEEPDIVES 37

This comes as a rising number of international retailers operating in the supermarket space. Up until retailers and brands have been moving to establish recently, the supermarket sub-sector was dominated by operations in Nairobi, particularly fast-moving consumer two family-owned chains, Tuskys and Nakumatt, though goods retailers: Société Generale reports that consumer the latter closed its doors in 2017 leaving Tuskys as the packaged goods account for the largest share – 30% – of largest retail chain with 60 branches. Fellow FOB, Naivas consumers’ monthly spending in Kenya. is a close second with 55 outlets and a similar market French supermarket giant Carrefour came to the share in Nairobi, with both holding around 23% of the Kenyan market in 2016 and continues to expand its market, according to 2018 figures. operations there, and South Africa’s Shoprite opened Rising competition in the space has spurred its first store in Kenya in late 2017, while Game, several private equity (PE) deals, to support smaller owned by US retail giant Walmart, is also expanding its players to expand their footprint. Mauritius-based presence in the country. PE firm Adenia Partners acquired two family-owned supermarkets, Tumaini Self Service and Quick Mart, Supermarket Space within the space of a year between the end of 2018 and These international players join a sector that has third quarter of 2019. The fund plans to merge the two traditionally been the domain of family-owned businesses to increase its presence in the FMCG retail space. (FOBs), with over a quarter of leading family-run Family-Owned Businesses Consumer goods and retail companies make up 17% of Kenya’s FOB landscape. Companies are split roughly Company Headquarters by County evenly between the two sectors, with retailers being slightly more concentrated at higher revenue bands with 56% of firms with turnover estimated at over $10 No. of Companies: million a year. This is largely thanks to the presence 1 of major supermarkets within the group, with this 5 6 category comprising the largest number of companies 36 apart from those active across a number of segments. The industry is heavily concentrated in Nairobi, home to 70% of FOB headquarters.

GDP per capita PPP, 2009-18 (international $)

4000

3000 Segments of Operations

2000 100% Multi-Segmented 1000 Other Consumer Goods 0 75% Other Retailers 2010 2012 2014 2016 2018

Auto Parts & Accessories Household final consumption expenditure, 2009-18 ($ bn) Consumer Goods 50% 80 Distributors

60 Furniture & Accessories

25% Clothing & Accessories 40

Electronics 20

0% Supermarkets 00 2010 2012 2014 2016 2018

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 38 COUNTRY DEEPDIVES | KENYA CONSUMER GOODS & RETAIL PROFILES ADAPTED FROM ASOKO’S DATABASE

Chandaria Industries Limited Private | Kenya, Nairobi | Consumer Goods REGIONAL REACH DISTRIBUTION Chandaria family Chandaria Industries is a manufacturing company in Kenya that produces a range of paper products as well as other hygiene, household and packaging goods. Chandaria Industries Limited (CIL) KENYA SOUTH SUDAN ETHIOPIA is the largest company within Chandaria

KENYA Group’s portfolio, which also includes D. R. CONGO KENYA

RWANDA Chandaria Capital, Chandaria Properties BURUNDI TANZANIA Limited and Tanpack Tissues Limited, ZAMBIA as well as interests in Vista Packaging MALAWI Limited, Greenstone Resources Limited and Mobius Motors Limited. Chandaria Group was established in 1964 and is based in Nairobi Kenya.

Chandarana Supermarket Limited LONGEVITY Private | Kenya, Nairobi | Retail Shantilal family Founder: Passed over to: Chandarana Foodplus Limited is a grocery store chain in Kenya with outlets across Kenya’s major urban centres. The brand Sons is focused on food items and Shantilal Anil Sanjay Dipan Mulji Thakkar Thakkar Thakkar Thakkar offers in-house butcheries, bakeries and sandwich shops. It sources its goods direct from suppliers, with no middleman 1964 80’s 2013 2016 2019 or warehousing facilities. The company was founded in 1964 and is based in Nairobi, Kenya. 1 2 8 10 17 Number of Branches

Khetia Drapers Limited DIVERSIFIED Private | Kenya, Kitale | Retail Brands Khetia family Khetia Drapers Limited is a Segment multi-sectorial company based in Kenya. It operates Khetia’s Wholesale and Khetia’s Food & beverages Distribution Supermarket, both involved in the retail of consumer goods. It also operates Khetia’s Oven Fresh Bakery and quick-service restaurant Khetia’s GigaBite. Retail Founded in 1982, the company is based in Kitale, Kenya. Kethia’s Wholesale

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYAKENYA || COUNTRY DEEPDIVES 39

Naivas Limited PRIVATE EQUITY BACKED Private | Kenya, Nairobi | Retail Mukuha family

Naivas Limited operates in the 2020 retail trade business in Kenya. The company maintains INVESTS a chain of supermarkets in offering a wide array of products including fashion, entertainment, household 1992 and home care products, Via Amethis Fund II Sector: Retail appliances, clothing, food and (Supermarkets) groceries. Naivas Limited was established in 1992 and its headquarters are located in Nairobi, Kenya.

Tumaini Self Service Limited PRIVATE EQUITY BACKED Private | Kenya, Nairobi | Consumer Goods Ngeruro family

Tumaini Self Service Limited is a 2018 2019 supermarket operator in Kenya headquartered in Nairobi, Kenya. ACQUISITION ACQUISITION of majority of majority stake in stake in Quick Mart Limited Private | Kenya, Nairobi | Retail Via special purpose vehicle Sokoni Retail Kenya Kinuthia family Quick Mart Limited is a supermarket chain in Kenya. It was established in 2006, and is Planned based in Nairobi, Kenya. merger

Tuskys Kenya Limited REGIONAL REACH Private | Kenya, Nairobi | Retail Kamau family Number of Branches

Tusker Mattresses Limited Across Kenya (Legal Name) is a private +7 in Uganda & Uganda retail company in Kenya. The company operates Founded 45 54 +100 supermarkets across urban centers in Kenya and Uganda. Planning It offers conventional 1990 2011 2013 2015 2017 2019 2022 supermarket services including in-store bakeries, delis, butchery services, among other items found in 32 50 60 grocery. Tuskys was founded in 1990 and is based in Nairobi. +4 in Uganda

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 40 COUNTRY DEEPDIVES | KENYA

INCREASINGLY INCLUSIVE FINANCIAL SERVICES

Financial services in Kenya have expanded rapidly contribution in current prices has more than tripled since on the back of population growth, technology uptake, 2010, rising from $1.73 billion to hit $5.22 billion. rising levels of financial inclusion and a stable regulatory environment. Today, Kenya is home to Credit Growth Africa’s third-largest financial services sector. Much of this growth has been a result of improved The financial and insurance activities segment credit access and rising bank lending. Domestic plays an important role in service sector growth, and lending has more than doubled in less than a decade, while it is smaller in value than the retail and transport with total domestic credit rising from $12.7 billion in and communications segments, it has been one of the 2010 to hit $33.9 billion in 2018. fastest-growing in the Kenyan economy. Financial This growth trajectory hit a snag in 2019 when and insurance activities growth averaged 7.7% the Kenyan government imposed an interest rate between 2010 and 2018, and the sector recovered cap on banks’ commercial lending rates to within from a subdued 2017, in which annual growth fell 4% of the central bank’s rate. A slowdown in private from 6.9% to 2.8%, to expand by 5.6% in 2018. Its GDP sector lending ensued, with an estimated 1 million

Services Sector Family-Owned Businesses in Kenya

Estimated Annual Revenue Breakdown Company Headquarters by County

Financial Services IT No. of Companies: 2 Health Leisure & Tourism 7 TOTAL: 48 Transport Services 57 Media Companies

19% Of FOB universe

20.0% 40.0%

7.1% $100m - $500m 10 28.6% 35.7%

20.0%

20.0%

$25m - $100m 14 28.6%

$10m - $25m 23 4.3% 8.7% 30.4% 33.3% 33.3%

$5m - $10m 3 34.8% 17.4% Construction 4.3% 33.3% 88% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COUNTRY DEEPDIVES 41

customers categorised as high-risk, including small from 26.9% in 2006 to 66.7% in 2013 and carried on and medium-sized enterprises (SMEs), being unable growing to reach 82.9% in 2019. The percentage of to access credit as a result. Private sector credit people accessing informal financial services fell from growth fell from 16.8% in 2015 to 9.3% in 2016, 2.1% 32.1% in 2006 to 6.1% in 2019, while the percentage in 2017, and 3.8% in 2018, with the Kenya Bankers of people who are excluded from the financial system Association later reporting that lending to SMEs dropped from 41.3% to 11% over the same period. declined by $18.5 billion between 2016 and 2019. In November 2019, however, President Uhuru Kenyatta Rising Coverage officially scrapped the cap, which was expected to Growth is not limited to banking, and the insurance lead to a near-term resurgence in credit growth. sector has also recorded impressive expansion in This blip notwithstanding, lending growth has recent years, with total gross direct premiums rising had a profound impact on financial inclusion, and from $1.26 billion in 2013 to $2.07 billion, a 64.3% the Kenya National Bureau of Statistics reports that increase. Insurance industry net profits reached access to formal financial services and products rose $71.25 million, and long-term insurance business grew by 5.6% to hit $853 million, while general business rose by 2.2% to $1.26 billion. Insurance density, which measures the ratio of gross direct insurance premiums Financial Services FOBs by Segment to the total population, rose to $44.16 in 2018, from $43.48 in 2017, demonstrating that Kenyans are Other Financial Services 21.4% spending modestly more on insurance, even if total Commercial insurance penetration remains low, at 2.4% in 2018. Bank 35.7% New opportunities for insurance expansion and fintech products have made the financial services Asset Management sector an attractive investment destination, supported 8.4% by Kenya’s young, digitally literate population, rising internet penetration, population growth, and a steady Investment Firm 7.1% increase in income per capita and personal spending, which will enable better access to a broader range of Investment Bank Insurance Provider 7.1% financial products in the coming years. 21.4% As a result, the financial services sector accounts for the largest single share of foreign direct investment (FDI) in the country, with total FDI liabilities in financial and insurance activities jumping from $2.09 billion in Segments of Operations 2016 to $2.67 billion in 2017, a 28.1% increase, and

100% Financial Services equivalent to 40% of total FDI liabilities. Manufacturing was in a distant second, at 19% of total FDI liabilities. Health care

75% Information Technology Family-Owned Businesses

Leisure and Tourism A number of Kenya’s most prominent families have holdings in the financial services sector, predominantly 50% Media in the banking and insurance sectors where family- Real Estate led firms include large regional players such as I&M Holdings, Prime Bank and NCBA. FOBs are also 25% Services represented in the asset management, investment and Telecommunications credit financing spaces. Though many financial services

0% Transports firms are listed, the family roots continue to be visible in the leadership structure of these companies.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 42 COUNTRY DEEPDIVES | KENYA FINANCIAL SERVICES PROFILES ADAPTED FROM ASOKO’S DATABASE

Apollo Investments Limited REGIONAL REACH Private | Kenya, Nairobi | Financial Services Shah family

Apollo Investments Limited provides general and life insurance solutions for individuals, businesses, and organisations in Kenya through its subsidiary, APA Insurance Apollo Asset Gordon Court Limited. The company is also engaged in Management Ltd (Apollo asset and wealth management operations, Company Centre) as well as investing in securities, properties, mortgages, and loans through its subsidiary, APA Life Apollo Asset Management Company Limited. Assurance Apollo Investments Limited is a subsidiary of Ltd Kenmac Limited. The company was founded in 1977 and is based in Nairobi, Kenya. Reliance Insurance (34%)

Family Bank Kenya Limited LONGEVITY Private | Kenya, Nairobi | Financial Services Muya family Family Bank Limited is a commercial bank in Kenya with 90 branches. It was founded in 1984 as Family Finance Building Society Limited. It gained Commercial Bank status in 2007 2004 2007 on receiving a banking license Licensed as commercial bank Purchased Kenya Orient from the Central Bank of Kenya. It Insurance Company operates as a public company whose stock is privately held by institutional

and individual investors, with the 1984 1984 estate of Rachel N Muya as one of the Family Finance Titus Daykio Plantations largest shareholders. Building Society Muya founded Limited founded

I&M Holdings Limited REGIONAL REACH Listed | Kenya, Nairobi | Financial Services Shah family

I&M Holdings Limited is a financial services holding company that Banks Investing Insurance Real Estate comprises I&M Bank Limited, I&M Capital, GA Insurance, Giro I&M I&M Commercial Bank and Burbridge Capital Realty Capital Limited in Kenya, as well as interests in banks in Rwanda,

Tanzania and Mauritius. I&M Bank Youjays Insurance has 30 branches in Kenya, of which Brothers Limited 19 are located in Nairobi. I&M Holdings Limited was founded in 1974, and has been a publicly listed company since 2013.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYAKENYA || COUNTRY DEEPDIVES 43

NCBA Group Plc INORGANIC GROWTH Listed | Kenya, Nairobi | Financial Services Ndegwa family & Kenyatta family

NCBA Group Plc is a financial services provider in East Africa formed by the merger of NIC Group and Commercial Bank of Africa (CBA) announced at the end of 2018 and approved in October 2019. Headquartered in Nairobi, Kenya, the group owns subsidiary Enke companies in Kenya, Uganda, Tanzania, Investment Limited Rwanda and Côte d’Ivoire. The Kenyan banking subsidiary of NCBA Group Plc is known as NCBA Bank Kenya Plc and offers a full range of retail and corporate banking services. Ndegwa Kenyatta Family Family

Prime Bank Kenya Limited Private | Kenya, Nairobi | Financial Services REGIONAL REACH Kantaria family

Prime Bank (Kenya) Limited is a medium retail banking institute that provides personal, corporate and other banking services for both individuals Prime Bank Ltd and corporate clients in Kenya. The company was licensed in 1992 and currently operates with 18 branches. Prime Bank (Kenya) Limited has First Merchant Bank holdings in three companies: Prime Capital & Credit Limited in Nairobi, Kenya (100%), First Merchant Bank in Blantyre, Malawi (22.48%) and Capital Bank in Gaborone, Botswana (11.46%).

Finance Simba Corp DIVERSIFIED

Private | Kenya, Nairobi | Financial Services Sima Popat family Leasing

vehicle leasing Simba Corporation is an Motor Hospitality integrated business group headquartered in Nairobi, Kenya with interests in motor sales and service, hospitality, investment and financial services. It has Renault and Mitisubishi dealerships, and manages several hotels under the Kempinski and Acacia brands. Simba Corporation Trade was founded in 1948 as a used- ASKA Power car sales enterprise. Generator

representative

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

COUNTRY DEEPDIVES ETHIOPIA 46 COUNTRY DEEPDIVES | ETHIOPIA

CROSSROADS COUNTRY ETHIOPIA

Located at the crossroads of the Middle East and weighed on growth, textiles exports reached $1.32 Horn of Africa, and home to Africa’s second-largest billion during the first half of 2019. population after Nigeria, Ethiopia is one of the fastest- growing countries on the continent, with the World Services Bank reporting annual GDP growth averaged 9.8% State-owned Ethiopian Airlines accounts for the between 2007 and 2019. Sustained growth has lifted bulk of foreign exchange earnings for the country millions out of poverty, and pushed Ethiopia to become and government, and Ethiopia’s transportation and the seventh-largest economy in Africa by 2017, with communication sector at large has also clocked a poverty levels dropping to 20% by 2019, from 38.4% in strong performance recently, with annual growth 2005. GDP growth stood at 6.81% in 2018, according hitting 13.7% in 2016, 15.1% in 2017 and 6.4% in 2018. to World Bank data, and was projected to be between Although it accounts for a relatively smaller share of 7.7% and 9% in 2019. GDP than the agriculture, retail and hospitality sectors, the financial, insurance and real estate sector has also Key Sectors performed well, with annual growth rising from 4.9% Agriculture is the largest single sector of the country’s in 2015 to 8.5% in 2016, 9.6% in 2017 and 8% in 2018. economy, accounting for 34.9% of GDP in 2018, and While sectors including banking, microfinance, generating $2.17 billion of export revenues in fiscal telecommunications, and insurance are limited to year 2017/18, or 78% of the total. national investors, Ethiopia has seen a surge of It is also the largest employer in the country, recent foreign direct investment (FDI), with the US providing a livelihood for 77% of the workforce. At the macro level, however, Ethiopia’s economy is dominated Ethiopia FOB Sector by the services sector, which accounted for 39.2% of GDP in 2018. Industry followed at 27%. Construction was the fastest-growing sector of the Ethiopian economy in 2018, rising by 15.7%, as the government moved to implement the second phase of its Growth and Transformation Plan, which aims to invest billions in new infrastructure and transform the 98 FOBs country into a manufacturing hub. Wholesale and retail trade growth hit 11.4% in the same year, followed by financial and insurance activities (10.7%), public administration (8.9%), and FOBs by Sector human health and social work (8.3%). Transport 5.1% Real Estate 5.1% Exports Leisure Ethiopia is one of Africa’s top producers and exporters & Tourism 1.0% Agriculture of coffee, which accounted for 43% of total agricultural 19.4% exports in 2017/18. Other important cash crops Industrial include oilseed, cotton, sugarcane and vegetables, with Manufacturing 21.7% abundant agricultural resources driving expansion in Construction the food processing and beverage sub-sectors. 20.4% Manufacturing growth has been strong over the past Health care 1.0% five years, rising from 16.6% in 2014 to hit 18.2% in Consumer goods 2015, 18.4% in 2016, and a high of 24.7% in 2017, before 6.1% Food moderating to 5.5% in 2018. Ethiopia’s manufacturing & Beverages Financial 14.3% Services base has become increasingly diversified in recent 16.4% years, and despite supply chain challenges that have

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIA | COUNTRY DEEPDIVES 47

International Trade Administration reporting total FDI being importers of machinery and consumer goods and in the country stood at $8.5 billion as of November exporters of agricultural products. Nearly all FOBs are 2019. headquartered in Ethiopia’s capital and commercial centre, Addis Ababa. FOBs make a significant Family-Owned Businesses contribution to employment in the country, boasting a Ethiopia’s large businesses can be grouped into three number of large-scale workforces. categories: state-owned enterprises, political party- owned enterprises, and family-owned and controlled GDP growth, 2008-18 (% change) private limited companies (PLCs). With 98 family- 15 owned businesses (FOBs) among the region’s leading 500, the Ethiopian market represents the second- largest concentration in the region, at nearly 20%. 10 The vast majority have estimated turnovers between $10 million and $500 million, though there are a few outliers at either end of the scale. Over three-quarters 5 are concentrated in four main sectors: industrial manufacturing, construction, agriculture, and food and beverages. A large number of these firms operate across 0 several industries, with the most common combination 2008 2010 2012 2014 2016 2018

Company Headquarters by Region Estimated Annual Revenue Breakdown

No. of Companies: 1 $500m+ 1% 2 95 $100m100m - $500m 3%

$25m - $100m100m 48%

$10m10m - $25m 40%

$5m - $10m10m 1%

93 % of FOBs represented FOB Employee Range

BAND A: 1-10 BAND D: 201-500 BAND G: 5,001-10,000 BAND B: 11-50 BAND E: 501-1,000 BAND H: 10,000+ BAND C: 51-200 BAND F: 1,001-5,000

0% 25% 50% 75% 100% 67 % of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 48 COUNTRY DEEPDIVES | ETHIOPIA

BUILDERS AND MAKERS CONSTRUCTION AND MANUFACTURING

Industry is the fastest-growing sector of Ethiopia’s has recorded consistent double-digit growth since 2010, economy. Its share of GDP has more than doubled rising by 38.7% in 2013, 31.6% in 2015 and 20.7% in 2017, since fiscal year 2003/04, hitting 27% in 2017/18, led by supported by big-ticket projects including the $4.1 billion construction and manufacturing. These sectors have Grand Ethiopian Renaissance Dam, East Africa’s largest benefitted from a large-scale infrastructure development construction project. On completion, the dam will be the agenda that has seen billions of dollars poured into new biggest in Africa and supply 6450 MW of power, bringing road, railway, dam and residential construction projects electricity to millions of households. The sector has also under the country’s second Growth and Transformation recorded a five-fold increase in foreign direct investment Plan (GTPII), as well as a large domestic market, between 2007/08 and 2016/17, when $4.17 billion was competitive labour costs, and a recent surge of funnelled into new construction projects. investment in high-priority manufacturing segments including textiles and automotive assembly. Building Up Construction dominates Ethiopia’s industrial base, Strong recent construction growth can be attributed to accounting for 71.4% of industrial output, and growing sustained government investment. In transportation, by 15.7% in 2018, the largest increase of any single sector, for example, $11 billion of government spending according to the National Bank of Ethiopia. Construction has been channelled into roads over the previous 20

Construction and Industrial Manufacturing Family-Owned Businesses in Ethiopia

Estimated Annual Revenue Breakdown

TOTAL: Industrial Manufacturing 44 Companies Construction 45% Of FOB universe

100%

$100m - $500m 1

52.3% 47.7%

$25m - $100m 17

60.4% 39.1%

$10m - $25m 23

93% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIA | COUNTRY DEEPDIVES 49

years, and as of 2018, some 20% of the government’s of foreign direct investment in the country, supported infrastructure spending, around $1.7bn annually, was by government efforts to develop new industrial parks allocated to road construction. offering generous investor incentives. The long-term New rail projects, including a 32-km light rail system goal under GTPII is to boost the share of manufacturing in Addis Ababa and 750-km electric railway connecting to at least 20% of GDP by 2025. the capital city to the Red Sea via Djibouti, have also bolstered construction industry growth. Manufacturing However, with up to 70% of construction materials Manufacturing accounted for 25.3% of total industry in currently imported, the country will need to build up its 2017/18. It has recorded consistent double-digit growth domestic production base to support future demand, over the previous decade: The National Bank of Ethiopia leaving the manufacturing sector well-positioned for reports the sector grew by 11.3% in 2010, 16.9% in 2013 future expansion. and 24.7% in 2017, before moderating to 5.5% in 2018. Ratings agency Fitch reports that while Ethiopia’s Manufacturing growth in Ethiopia benefits from manufacturing industry is currently underdeveloped the country’s rich agricultural resources – agriculture compared to Kenya and South Africa, it is set to accounts for 87.3% of total export receipts, and holds emerge as one of the key growth drivers and sources considerable potential to support domestic food and beverage manufacturing – as well as a very large domestic market and workforce offering some of the world’s lowest labour costs. Company Headquarters by Region These factors have seen a surge of recent investment, particularly in the textile and garment segment, with

No. of Companies: major manufacturers including GAP, Tchibo, H&M, PVH 1 (Calvin Klein and Tommy Hilfiger), Velocity Apparelz 42 (Zara and Levi’s) and Jiangsu Sunshine Group (Hugo Boss and Giorgio Arman) establishing operations in the country in recent years. Light manufacturing like textiles is a key development priority for the country, although interest and investment in advanced manufacturing including automotive assembly has also been rising, with Kia and PSA Peugeot Citroën recently opening plants in Ethiopia with a view to exporting regionally.

Family-Owned Businesses Segments of Operations Strong growth has made the industrial manufacturing

100% sector a prime business opportunity, and the sector boasts the largest concentration of leading family-owned

Multi-Segmented businesses (FOBs) in Ethiopia. Firms are split roughly 75% Construction evenly between those in manufacturing and those in Materials construction, with the former accounting for 55% of the 44 Construction & Design 50% FOBs in the space. Within the manufacturing sector, most Basic Materials firms are identified as being producers of basic materials. Manufacturing On the construction side, the majority of FOBs provide Machinery 25% & Equipment building and design services. Over a third of companies Manufacturing in this space work across several sectors, making this the largest group. Just over 90% of firms record estimated 0% annual revenues between $10 million and $100 million.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 50 COUNTRY DEEPDIVES | ETHIOPIA CONSTRUCTION AND MANUFACTURING PROFILES ADAPTED FROM ASOKO’S DATABASE

Country Trading Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Industrial Manufacturing Biniam Birhane family

Country Trading Plc is a manufacturing and

distribution company in Ethiopia. It is engaged Food & Consumer Retail Real Manufacturing Exports Machinery & in manufacturing and supplying nails; importing Beverages Goods Estate Construction

and distributing non-alcoholic drinks, electronics, Segment construction machinery, bitumen and tyres; and Millenium Jaguar Country Country Oil YTY Duty Free Nail exporting agricultural products. The company Liquors Tower seeds Ethiopia Shop Factory has associate companies YTY Construction Plc

Bitumen Gezana Food and Gezana Real Estate Plc, which are engaged Lucy Secret Steel Bars Real grain in the supply of construction materials and the Estate & Sheets construction of real estate properties. It also owns CMC Ethiopian Industries Cosmetics Addis Cloud 9 Coffee a duty-free shop at Bole International Airport. Apts Established in 1997, Country Trading Plc is based Ethiopian Electronics in Addis Ababa, Ethiopia. Elegance Sugar

Ethio Ceramics Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Industrial Manufacturing Abduljelil family

Ethio Ceramics Plc is a manufacturing company in Ethiopia. The company produces and supplies ceramic Sole agent for: wall and floor tiles, porcelain tiles, home and office furniture, other building and finishing materials, and home elements. The company is the sole agent for various global firms. Ethio Ceramics Plc was founded in 1986 and is based in Addis Ababa, Ethiopia.

KK Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Manufacturing Ketema Kebede family

KK Plc is a manufacturing company in Ethiopia. It manufactures and Transport & Real Manufacturing Imports Exports Logistics Estate supplies blankets and acrylic yarn and other textile products. Segment

It also imports Sany Construction Real Heavy Custom Estate Blankets Machinery Coffee Machinery and spare parts and Clearing Developer engages in the exportation of

Transit & Pulses & coffee oil seeds and pulses. In Forwarding Oil Seeds addition to manufacturing, the

company also offers transit and Cargo Handling

forwarding services. KK Plc was / Services Products formed in 1976 and is based in Trans- Addis Ababa, Ethiopia. portation

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIAETHIOPIA || COUNTRY DEEPDIVES 51

Tamrin International Trading Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Industrial Manufacturing G/Giorgis family

Tamrin International Trading Plc is an import and export company in Ethiopia. Its imports comprise dump Import: truck vehicles, construction machinery • Vehicles and equipment, and Toyota vehicles. Its exports include peas, soya beans Kibrom G/giorgis and green mung beans. The company Transport Service has also branched into manufacturing with the acquisition of Melens Plc, a Export: packaging and tissue manufacturer. • Agricultural Goods

Tamrin International Trading Plc Melens Plc Amete was established in 2009 and is Contruction Works Plc headquartered in Addis Ababa, Ethiopia.

Ture Plc LONGEVITY Private | Ethiopia, Addis Ababa | Industrial Manufacturing Ture family

Ture Plc is a distribution company in Ethiopia Haji which imports and distributes hardware, Mohammed A machinery and construction materials, as well as providing installation services to Founded: 1954 large and small-scale factories. Ture Plc has a number of subsidiaries, joint ventures and share companies including, Great Wall Ture Construction Materials Manufacturing Plc, Plc Ayesha Feki Printing and Packaging Plc, Ture Pingle Flour Industry Plc, Pioneer Cement Great wall Hebei Pingle Manufacturing Plc, Ture Cement Factory, Construction Pioneer Capital Flour Machinery Ayesha Ture Cement Pingle Materials Cement Ltd. Cement Plc. Group co. Feki Manufacturing Ltd Capital Cement Plc. Ture Plc was founded in Plc 1954 and is based in Addis Ababa, Ethiopia.

Yencomad Construction Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Construction & Real Estate Yemeru Nega family

Yencomad Construction Plc is a construction company in Ethiopia established in 1994. It is a general Civil works: road, building and airfield construction, and water works contractor engaging in both the Sister companies: construction of buildings and infrastructure such as roads, airfield and water works. Its sister companies include Dembel City Centre, Dembel Retail Real Estate Agriculture Real Estate and Abaya-Gelna Agricultural Dembei City Centre Dembel Real Abaya-Geyna Development project. Yencomad Location: Addis Estate – West End Agricultural Building Development – Construction Plc employs over 1500 staff Ababa Location: Addis Sugar plantation and is based in Addis Ababa, Ethiopia. Ababa Location: Oromiya, SNNPR

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 52 COUNTRY DEEPDIVES | ETHIOPIA

MAINSTAY AGRICULTURE AND FOOD & BEVERAGES

As Ethiopia pursues an economic development economy, although its GDP contribution has been strategy focused on increasing manufacturing capacity in decline in recent years as development elsewhere to boost value-added diversification, its abundant has sped up. The National Bank of Ethiopia reports agricultural resources will play a key role in economic that agriculture’s share of GDP stood at 34.9% in transformation. Offering a 105 million-strong 2017/18, down from 36.3% in 2016/17. It remains the domestic market and recording 9.9% average annual largest single sector of the economy, even as services GDP growth between 2007 and 2018, Ethiopia holds have increased their share of GDP from 38.8% to especially high potential for food and beverage (F&B) 39.2% over the same period. The sector’s real GDP industry growth. Coffee remains its largest and most contribution has more than doubled since 2012/13, important cash crop, while oilseeds and cereals also rising from $7.8 billion to hit $19.7 billion in 2017/18. present opportunities for growth should they receive The agriculture, forestry, and fishery sector has the necessary investment in irrigation, mechanisation recorded growth over the previous decade, although and inputs to support efficient production. most crop production is rain-fed, meaning growth Agriculture is a mainstay of the Ethiopian fluctuates. The sector expanded by 7.6%, 9%, and

Agriculture and Food & Beverage Family-Owned Businesses in Ethiopia

Estimated Annual Revenue Breakdown

TOTAL:

Agriculture 33 Companies

Food & Beverage 34% Of FOB universe

100%

$100m - $500m 1

33.7% 66.3%

$25m - $100m 18

54.0% 46.0%

$10m - $25m 13

100%

$5m - $10m 1 Construction

100% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIA | COUNTRY DEEPDIVES 53

4.9% in calendar years in 2010, 2011 and 2012, duction has made these two commodities equally critical, respectively, recovering to hit 7.1% in 2013, 5.4% in though most sector activity focuses on the latter, with 2014 and 6.4% in 2015, before sinking to 2.3% in 2016. grain production accounting for nearly 80% of land under An upswing returned in 2017, with growth hitting cultivation, and 60% of rural employment. The US Inter- 6.7%, although this moderated to 3.5% in 2018. national Trade Administration (ITA) reports that house- holds spend an average of 40% of their total food budgets Key Crops on cereals. Local production of wheat and oilseeds is in- Coffee is Ethiopia’s primary export, accounting for sufficient to meet local demand as the bulk of production 43% of agricultural exports and 34% of the country’s remains small-scale and weather-dependent and demand total export base in 2017/18. Coffee export revenues for wheat-based products including biscuits, bread and hit $2.75 billion in the same year, up from $2.65 billion pasta, is projected to climb as urbanisation increases. in 2015/16, while production has risen from 6.5 million 60-kg bags in 2014/15 to 7.35 million in 2017/18. Demand Drivers Rising domestic demand for livestock and grain pro- Rising grain consumption is part of a broader trend in the domestic food and beverage sector, and the ITA reports that domestic demand for cooking oil, sugar, meat, eggs, dairy products and beverages will also

Company Headquarters by Region increase, creating new opportunities for diversified cash crop investment, as well as input and equipment sales, fertiliser, irrigation equipment, and agro-processing. No. of Companies: 33 Cotton has also been identified as a strong prospect for Ethiopian agriculture, with the country’s nascent textiles industry struggling to procure sufficient inputs to meet growth targets. Under the second phase of its Growth and Transformation Plan, the government envisions agro- processing playing a key role in manufacturing growth. It has identified new small and large-scale irrigation projects, better input supply financing, increased productivity and mechanisation as key agricultural targets under the plan.

Family-Owned Businesses Segments of Operations Representing the second-largest concentration of 100% family-owned businesses (FOBs) in Ethiopia, the agriculture and food and beverage sectors include a large number trading firms exporting agricultural 75% produce and importing manufactured goods. Given the Multi-Segmented importance of coffee as Ethiopia’s main export, coffee Food processors are also well represented in this segment, 50% Beverages which is weighted to agricultural firms at a ratio of Floriculture 60:40. Over half of the companies in these sectors have Crop Farming estimated revenues of between $25 million and $100 25% million, with agricultural firms dominating this revenue band. A focus on trade means all companies have their

0% headquarters in Addis Ababa, despite produce being grown elsewhere in the country.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 54 COUNTRY DEEPDIVES | ETHIOPIA AGRICULTURE AND FOOD & BEVERAGES PROFILES ADAPTED FROM ASOKO’S DATABASE

Kaki Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Agriculture Kahsai Kidanu family Imports Kaki Plc is a general trading company in • Trucks Ethiopia. The company provides a variety • Tyres of products for import and export trading. • Spare It also manufactures dry land cargo bodies parts and parts, and provides sesame and cereal cleaning services, and dry cargo transport services. Kaki Plc was initially Exports formed in 1997 as a freight transporter and • Coffee established as a private limited company • Sesame Haulage Seeds in 2003. It is based in Addis Ababa and • Pulses has branch offices in Mekele, Hawasa, Diredawa, Bahir dar and Adama. Warehouses

Vehicle Manufacturing

Lanchihun Business Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Agriculture Agribusiness Construction Machinery Berra Bahta family

Lanchihun Business

Plc exports agricultural Imports Exports products such as oil seeds, • Vehicles pulses, cereals and spices. • Oil Seeds • Construction The company is also Machinery • Cereal Lanchihun involved in importing of • Agricultural & • Pules Business Industrial Machinery machinery and equipment. • Spices Plc • Industrial Production Lanchihun Business was & Commodities established as a private • Yeast

limited company in 2009 Imports and is based in Addis Ababa, Ethiopia.

Midroc Ethiopia Plc Midroc DIVERSIFIED Ethiopia Private | Ethiopia, Addis Ababa | Agriculture Plc Al-Amoudi family

Corporate Agriculture Plastic Building Metal Mining Retail Transport Education / Midroc Ethiopia Plc is a holding Management & Agro Products Construction Work Training company in Ethiopia. The firm is a Service Processing private investment group with over 25 companies operating in a diverse range of industries, including: agriculture and agro-industry, construction, hotels and tourism, manufacturing, mining, oil and gas distribution, real estate development, transport (including air transport), trade and commerce, health care, and education and training. Midroc Ethiopia Plc was established in 1996 and is based in Addis Ababa, Ethiopia.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIAETHIOPIA || COUNTRY DEEPDIVES 55

Mullege Plc First generation LONGEVITY Private | Ethiopia, Addis Ababa | Agriculture Awel family

Awel Mullege Plc is an agro-processing Founded 1953 company engaged in processing red coffee cherries into Second generation exportable green coffee beans. The company has coffee trading clients in Europe and Japan Mustafa Awel and roasters across the world. Mullege Plc promotes achieving CEO / Managing Director Third generation food security, improved nutrition and sustainable agriculture. Established in 1953, Mullege Plc is

Mahabub Nuria Hashem Hayat Yisehak based in Addis Ababa, Ethiopia. Awel Awel Awel Awel Awel

General Logistics Deputy Supply Chain Supply Chain Manager Manager General Manager Manager Manager

S.A. Bagersh Plc LONGEVITY Private | Ethiopia, Addis Ababa | Agriculture Bagersh family

S.A. Bagersh Plc is a company in Ethiopia engaged in brothers farming, roasting, packaging and exporting of coffee. It operates estates in most Founded: 1943 Founded: 2006 Grower, Retail brand coffee-growing regions of Abdullah Walid processor, Bagersh Bagersh Founded by: the country and retails coffee exporter of Walid Bagersh coffee under the Tarara brand, Run by Abdullah which was established in Bagersh, 3rd 2006. Established in 1943, S.A. generation leader Bagersh Plc is based in Addis Ababa, Ethiopia.

The Ghions DIVERSIFIED Private | Ethiopia, Addis Ababa | Agriculture Segment Woldeher Yizengaw family The Ghion Ghion Travel Industry Gas Plc The Ghions is a business conglomerate in and Tour (GTT) Ethiopia. The company owns a chain of manufacturing and trading businesses in the Hospitality Oil & Gas country. Its subsidiaries include Ghion Industrial and Commercial Plc, Ghion Transport Plc, Misrak Flour & The Ghion Ghion Industrial and Chemical Plc, Ghion Gas Bread Factory Packaging Plc Agribusiness / Manufacturing Plc, Ghion Travel and Tour Plc, Ghion Plywood Food & Beverages

Factory and Ghion Packaging Plc. Ghion Transportation The Ghion Packaging is engaged in the production of paper Industrial and Commercial packaging and caters to the packaging needs of Plc the flower and the manufacturing industry. The The Ghion The Ghion Industrial and Ghions was established in 1962 and is based in Transport Chemical Plc Addis Ababa, Ethiopia.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 56 COUNTRY DEEPDIVES | ETHIOPIA

LEADING TRANSFORMATION SERVICE SECTOR

Ethiopia’s ongoing economic transformation has seen At Your Service the services sector rise to dominate GDP growth, The National Bank of Ethiopia reports that the service supported by rapid expansion in the communications, sector holds the largest share of GDP, at 39.2% in fiscal transport, hospitality and retail sectors. year 2017/18, up from 38.8% in 2016/17. In contrast, The government is currently moving to implement agriculture accounted for 34.9% and industry for the second phase of its Growth and Transformation Plan 27%. The service sector’s total real GDP contribution (GTPII), which envisions a structural transformation has more than doubled since 2012/13, rising from from an agrarian economy to one based on manufacturing $8.47 billion to hit $22.04 billion in 2017/18. and services, under the long-term objective of attaining Wholesale and retail trade is the largest service lower middle-income status by 2025. The plan further sub-sector, accounting for a 35.9% share of all envisions achieving 11% annual GDP growth by boosting services in 2017/18, followed by transport and trade and exports. communications (12.8%), public administration and Services will play a critical role in this transformation, defence (11.4%), real estate (11%), and hotels and and are expected to continue on a long-standing positive restaurants (6.6%). Other services including financial growth trajectory in the coming decades. intermediation, education, healthcare, and social and

Consumer Goods and Services Family-Owned Businesses in Ethiopia

Estimated Annual Revenue Breakdown

Financial Services IT TOTAL:

Health Consumer Goods 21 Companies

Transport Retailers 100% 21% Of FOB universe Real Estate Leisure and Tourism

$500m+ 1 100%

23.1% 23.1% $100m - $500m 1 33.3%

15.4%

30.8% 7.7% $25m - $100m 13

50.0% 25.0%

$10m - $25m 4

25.0% 100.0%

$5m - $10m 1

95% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIA | COUNTRY DEEPDIVES 57

personal services, accounted for a combined 22.3% of 2018 alone. That said, staples continue to represent total services that year. a large portion of spending, with food and groceries Ethiopia’s retail and tourism sectors have recorded accounting for nearly 40% of monthly household consistent double-digit growth in recent years, on expenditure, according to market research. the back of rising visitor numbers and a significant Annual growth in the retail and hospitality sector increase in consumer purchasing power. rose from 11.6% in 2010 to 16.9% in 2014, 18.4% in 2016 and a high of 24.7% in 2017, before slowing Purchasing Power to 5.5% in 2018. Nielsen reports that three major As a combined sector, wholesale and retail trade, consumer segments account for nearly 60% of restaurants and hotels has been one of the fastest- Ethiopian consumers, or close to 63 million people: growing over the previous decade, benefitting from young urban dwellers with an above-average income Africa’s second-largest population, rising international (17%), students in peri-urban areas (25%), and visitor arrivals, and robust macroeconomic growth traditional, family-oriented, and religious individuals that has raised consumer purchasing power – GDP (16%), with gradual middle class growth expected to per capita more than doubled between 2011 and support long-term retail expansion.

Going Places Transport and communications is another key service Company Headquarters by Region sector, rising by 6.4% in 2018. The transport sector has been a consistently high performer, supported No. of Companies: 1 by Ethiopian Airlines, a global aviation player that 20 accounts for the bulk of foreign exchange earnings for the country. Despite a difficult 2018/19 fiscal year, the carrier reported $4 billion of operating revenues and $260 million of operating profits. Net profit for the year stood at $189 million, Other stronger performers, albeit from a lower base, include financial and insurance activities, which rose by 10.7% in 2018; education, which expanded by 8.8%; and arts, entertainment and human health and social work, which increased by 10.8%.

33.3% Family-Owned Businesses Segments of Operations Family-owned businesses (FOBs) operating in the 100% service sector exhibit a high level of diversity, with the most common feature being their diversification: half work across multiple sectors with the remaining 10 Multi-Segmented 75% covering six individual markets. Sectors represented Real Estate include consumer goods, financial services, healthcare, Transport IT, leisure and tourism, real estate and transport. Financial Services 50% Leisure & Tourism Consumer goods companies make up the largest

Information single area of business activity, with three active Technology exclusively in this space, while another four operate 25% Consumer Goods in the consumer goods space as part of a wider range of business lines. Over 60% of Ethiopia’s leading in this

0% space have estimated annual revenues between $25 million and $100 million.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 58 COUNTRY DEEPDIVES | ETHIOPIA SERVICES SECTOR PROFILES ADAPTED FROM ASOKO’S DATABASE

AL-SAM Group Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Consumer goods Sabir Argaw family

AL-SAM Group Plc is a holding company in Ethiopia. It is engaged in importing and Company 1982 1992 1998 distributing fast-moving timeline consumer goods in the SAM country. It also invests in real International Plc estate development and Shop opened in established as AL-SAM Plc Merkado import/export established agricultural crops export. business Sesame and green coffee are its main export items.

Established in 1998, AL-SAM Business is headquartered in Addis lines Retail ImportExport Import Export Real Investment Ababa, Ethiopia. FMCGs Coffee Estate Sesame

Alta Computec Plc Private | Ethiopia, Addis Ababa | Information technology HIGH GROWTH Abdulkair Abdella family

Alta Computec Plc is an information technology company in Ethiopia. The company is engaged in building data centres, 1994 2019 designing and implementing IT systems, and providing networking solutions. It has Founding Today’s value: mainly served banks. Established Capital: $15,000 $25 million in 1994, Alta Computec Plc is headquartered in Addis Ababa, Ethiopia.

Amdehun General Trading Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Real estate Segment Abdella Helil family FMCGs • Batteries Amdehun Amdehun General Trading Plc is a trading • Paper Real Estate • Dry yeast Industry company in Ethiopia active in import, • Chewing gum export, manufacturing and real estate

development. It is engaged in the import of Import Real Estate Hotel fast-moving consumer goods and the export Development of agricultural products. Its manufacturing business focuses on detergents and soaps

from plants in Kality and Gelan. The real Export Manufacturing estate company constructs residential properties while a hospitality arm develops luxury hotels in the capital. Established Agricultural Top Laundry Goods SGA • Coffee in 1996, Amdehun General Trading Plc is • Oil Seeds headquartered in Addis Ababa, Ethiopia. • Cereals

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIAETHIOPIA || COUNTRY DEEPDIVES 59

Equatorial Business Group Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Transport Seid Hussien family

Equatorial Business Group Plc is a ETITB Equatorial Telecom & IT Business distribution and services company in Ethiopia. From its roots as an importer and distributors of electrical and electronic goods and services, today it spans four businesses, namely: Equatorial Telecom & IT Business, Equatorial EAB EPB Automotive Business, Equatorial Equatorial Automotive Equatorial Energy Business, and Equatorial Business Pharmaceuticals, Medical Equipment & Pharmaceuticals, Medical Equipment & Supplies Business Supplies Business. Equatorial Business Group Plc was established in 1993 and is EEB based in Addis Ababa, Ethiopia. Equatorial Energy Business

Get-As International Plc DIVERSIFIED Private | Ethiopia, Addis Ababa | Consumer goods Subsidiaries Rising Getu Gelete family Sun PLC ADM Industry Business Getu Get-As International Plc is a diversified PLC Commercial trading company in Ethiopia. The Center company focuses on the import and Hospitality Real Estate distribution of construction materials, food items, household items, detergents, Unity Dugda Business stationary and tyres. It also manages Floriculture Group Transport & a number of companies under its Agriculture Logistics Manufacturing umbrella, including ADM Business Plc, Construction

Unity Business Group Plc, Rising Sun Plc, Dugda Agro Dugda Construction Plc and Dugda Agro Industry PLC

Industry Plc. Get-As International Plc was Dugda incorporated in 1994 and is based in Addis Construction Ababa, Ethiopia.

Glorious Plc LONGEVITY Private | Ethiopia, Addis Ababa | Consumer goods Abdusemed Ibrahim family *Footprint

Glorious Plc is a consumer 1977 1979 1985 1990s 2019* goods company in Ethiopia distributing technological Addis Ababa: products. It is a sole agent and Wholesale centre, distributor of Sony, Hitachi, 6 retail Philips, Hisense and Ariston showrooms Masnoy Glorious Adama brands in Ethiopia. With roots Founded branch branch Glorious Plc (Nazareth): as Orsor in dating back to 1977, Glorious opens in opens in established Showroom Harar Plc is headquartered in Addis Dire Dawa Addis Ababa Harara: Ababa, Ethiopia. Subsidiary branch Dire Dawa: Subsidiary branch

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

COUNTRY DEEPDIVES UGANDA 62 COUNTRY DEEPDIVES | UGANDA

ABUNDANT RESOURCES UGANDA

Home to a largely untapped domestic market of more The construction sector has grown rapidly over than 45 million people and located at the crossroads the previous decade, with average expansion of 6.3% of Central and East African markets, including the between 2010 and 2017, while the transport and Common Market for Eastern and Southern Africa, communications sector has posted the highest long- Uganda holds high potential to become a regional term growth rate of any industry, rising by an average transport, logistics and transit hub. of 12.7% annually over the same period. Benefitting from abundant natural resources Mining and quarrying growth has also been strong, including oil, gas, minerals and diverse wildlife driving averaging 9.9% between 2010 and 2017, and standing tourism growth, Uganda’s economy has expanded at 5.9% in 2017. The oil and gas sector holds especially rapidly over the previous decade, with annual GDP high potential for future growth and development. growth averaging 6.5% between 2007 and 2019. GDP at Uganda has an estimated 6.5 billion barrels of oil, current market prices rose from $19.68 billion in 2010 1.4 billion of which are economically recoverable, to $34.75 billion in 2019, a 76.6% increase. The World and major oil multinationals including France’s Total, Bank reported that GDP growth hit a seven-year high the UK’s Tullow Oil, and China National Offshore Oil of 6.1% in 2018, and projected it would remain at 6% Corporation hold licences to develop the country’s in 2019, while the African Development Bank (AfDB) resources. The sector will require billions of investment expected growth at 5.5% in 2019 and 5.7% in 2020. in the future, with projects including a 1400-km heated

Key Sectors Uganda FOB Sector Agriculture is the largest sector of the Ugandan economy, accounting for 21.9% of GDP by economic activity at current prices in 2019, according to the most recent figures from the National Bureau of Statistics. After agriculture, the largest sectors are wholesale and retail (16.1%), education (9.1%), real estate (8.9%) and construction (7.5%). 69 Agriculture accounts for roughly 43% of exports FOBs and 70% of total employment in Uganda, and the US International Trade Administration reports that investors consider its agricultural potential to be among the best in Africa, offering the scope to feed hundreds of millions of people. FOBs by Sector

At the same time, non-agricultural growth is outpacing Transport 7.2% agriculture, and AfDB figures show that industry and Agriculture Telecommunications 11.6% services rose by 9.7% and 8.2%, respectively, in 2018, 1.4% Consumer Goods while agriculture increased by 4.5% in the same year. Real Estate 7.2% 5.8% Education Infrastructure Investment Oil & Gas 1.4% 4.3% Much of the country’s industrial growth is being driven Financial Services 8.7% Media by rising investment in public infrastructure, as well as 1.4% in the oil and mining sectors. Economic growth is also being supported by reforms to improve the business Leisure Food & Beverages and Tourism 17.4% climate, and the country rose 11 spots on the World 7.2%

Bank’s Doing Business 2020 survey to hit 116th out of Industrial 190 economies surveyed, recording improvements in Manufacturing 21.7% Healthcare categories including dealing with construction permits 4.3% and getting electricity.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 63

oil export pipeline and a $3 billion oil refinery currently relatively diverse with only three sectors comprising under development. more than 10% of companies. Industrial manufacturing, agriculture, and food and beverages together make up Services just over 50% of the landscape, with the other half These large-scale industrial projects will have a knock- split among ten sectors, largely in the tertiary sector. on effect on the service sector, and indeed financial A significant number of FOBs in Uganda are large- and insurance activities have been exhibiting strong scale conglomerates with interests across a range of growth in recent years, rising by 9.9% in 2017. The sectors. This helps to explain the high concentrations tertiary sector makes up more than half of GDP and of FOBs in upper revenue bands, with two-thirds of the a number of segments are experiencing double-digit 69 FOBs estimated to earn above $25 million annually. growth. Public administration and defence was the As with economic activity in general, the bulk of firms fastest-growing segment of the service economy in are headquartered in Kampala, which is the standout 2017, rising by 23.8%, while arts, entertainment, and commercial centre of the country, as well as being its recreation gained 11.7% in the same year. capital city. As a whole, FOBs make a large contribution to Uganda’s employment, with workforces of 50-200 staff Family-Owned Businesses being the most common, and 40% of firms reporting this Uganda’s family-owned business (FOBs) market is metric registering more than 200 staff.

Company Headquarters by District Estimated Annual Revenue Breakdown

$500m+ 13%

$100m100m - $500m 12%

No. of Companies: 2 41% 3 $25m - $100m100m 64

$10m10m - $25m 28%

$5m - $10m10m 4%

98% of FOBs represented

FOB Employee Range

BAND B: 11-50 BAND E: 501-1,000 BAND C: 51-200 BAND F: 1,001-5,000 BAND C: 201-500 BAND G: 5,001-10,000

0% 25% 50% 75% 100%

74% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 64 COUNTRY DEEPDIVES | UGANDA

FEED STOCK AGRICULTURE AND FOOD & BEVERAGE SECTORS

The largest single sector of the economy and holding from temperate variability and, in the southern half of significant potential for future expansion, Uganda’s the country, two rainy seasons annually, enabling more agriculture sector plays an essential role in growth and than one crop harvest each year. development. The country is Africa’s third-largest tea producer and largest coffee exporter, and agriculture Growing Potential contributes close to 22% of GDP by economic activity An estimated 80% of Ugandan territory is arable, at current prices. It also accounts for more than half of although just 35% of it is being cultivated at present. exports, and employs 70% of the workforce. This means the country has the opportunity to The US International Trade Administration (ITA) expand production of an existing and diverse array of reports that its agricultural potential is among the best in staple and cash crops, including its mainstays, coffee Africa because, unlike many of its regional neighbours, and tea, as well as sugar, livestock, edible oils, cotton, much of Uganda’s territory is ideal for agriculture. tobacco, plantains, corn, cassava, sweet potatoes Domestic agricultural land holds the potential to feed and cereals. As the country seeks to improve value 200 million people, with the country further benefitting addition and kick-start agro-processing activities, this

Agriculture and Food & Beverage Family-Owned Businesses in Uganda

Estimated Annual Revenue Breakdown

TOTAL:

Agriculture 20 Companies

Food & Beverage 29% Of FOB universe

50.0% 50.0%

$500m 4

20.0% 80.0%

$100m - $500m 5

57.8% 42.2%

$25m - $100m 7

33.4% 66.6%

$10m - $25m 3 Construction

95% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 65

rich agricultural base will also play a supportive role has been reaching new heights of late. The 2018 in growing the food and beverage industry. harvest represented a new peak, hitting 70 million With much of Uganda’s crop production remaining kilogrammes (kg), which topped the previous record dependent on rain-fed growing practices, agricultur- harvest of 66 million kg in 2014, and easily overtaking al growth has fluctuated over the previous decade, the government target of 60 million kg. averaging 2.4% between 2010 and 2019. The sector The coffee segment has also been on an impressive grew by 4% in 2015, but contracted by 0.3% in 2016, recent growth trajectory. Coffee exports rose by 18% before recovering to hit 4.5% in 2017. The IMF re- year-on-year to 4.19 million 60-kg bags in 2016/17, ports that Uganda’s 6%-6.5% projected 2018/19 GDP while total export revenues soared to $490 million, growth would be supported by improved agricultural from $351 million the previous year, a 40% increase. production. Exports rose again to hit 4.4 million 60-kg bags in 2018/19, and a projected 5.1 million bags during the Exports 2019/20 crop year, a 16% year-on-year rise. Tea is an important export crop, and production Cotton has also been trending up, with lint exports increasing by 35% to 25,994 metric tonnes (MT) valued at $41.64 million in 2016/17, against 19,242 MT worth $25.81 million in 2015/16. Total production

Company Headquarters by District expanded by 33.6% between 2016/17 and 2017/18, from 151,071 bales to 201,841 bales, while the segment’s contribution to household incomes rose by 37.5% over the same period, from $36.83 million to $50.65 million.

No. of Companies: State Strategy 2 The government’s National Development Plan II 18 (NDPII), implemented in 2015, seeks to enhance rural incomes, household food supply, nutrition security, and exports and employment, with the overarching objective of attaining 6% GDP growth annually until 2020. This has created new investment opportunities in Ugandan agriculture, with the ITA identifying production, value-addition processing, standards Segments of Operations compliance and export, and post-harvest handling as 100% holding particularly high investment potential

Multi-Sector

Food & Beverage – Family-Owned Businesses 75% Manufacturing Nearly a third of the leading family-owned businesses & Distribution (FOBs) in Uganda are classified as being in the Restaurant/Cafe agriculture or agro-processing space. The largest Other Agriculture 50% Agroprocessing – number of firms work across a range of sectors, Tea & Coffee with smaller numbers working a single segment, of Agroprocessing – which tea and coffee, sugar, and grains and oilseeds 25% Grains & Oilseeds are the most common, followed closely by food and Agroprocessing – Sugar beverage manufacturing and distribution. The sector

0% is a relatively high-earning market, with no companies estimated to earn less than $10 million a year.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 66 COUNTRY DEEPDIVES | UGANDA AGRICULTURE AND FOOD & BEVERAGES PROFILES ADAPTED FROM ASOKO’S DATABASE

Aya Group DIVERSIFIED Private | Uganda, Kampala | Food and Beverages Subsidiaries Mohammed family Aya Aya Biscuits Investments Limited Limited Aya Group of Companies is Segment an industrial conglomerate Aya Aya Property Bakery in Uganda, with operations Developers Limited stretching across East Africa Food and Beverages Hospitality Inc and subsidiaries in the UAE and US. The company Mining Aya operates in the food Mining Limited processing, transportation, Transport and property development Agriculture

sectors. Aya Group of Fifi Transport Companies is based in Limited Aya Kampala, Uganda. Mills Limited

Basajjabalaba Hides & Skin Limited DIVERSIFIED

Private | Uganda, Kampala | Food and Beverages 1993 Basajjabalaba family 2003 Basajjabalaba Hides & Skin First 1996 Merchant Ltd. Basajjabalaba Hides & Skin International Yudaya Trading International Limited is one of a number Company Ltd. Ltd. 2001 of companies owned by 1996

Kampala Hassan Basajjabalaba. His Haba International Group University business interests cover tea Ltd.

plantations and trade of skin Hassan Basajjabalaba and hides as well as a number Tea Factories Hotels in Bushenyi of firms involved in property & Buhweju 2001 2000 Districts development and construction. Victoria Sheila International The group also owns the Investments Trading Ltd. Company Kampala International Ltd. University and several hotels. It is based in Kampala, Uganda.

House of Dawda DIVERSIFIED Private | Uganda, Kampala | Food and Beverages Dawda family

House of Dawda is a privately owned conglomerate. Its primary operations are in the manufacturing of biscuits, bread, fruit juices, mineral water and confectionery. The group’s Food and Beverages Pharmaceuticals FMCGs Farming subsidiaries are involved in the Uganda Masaaba distribution of fast-moving consumer Pharma- Cotton ceuticals Company goods and pharmaceuticals and Ltd cotton farming. The company also provides warehousing services and Kyoga Cotton real estate. It was established in Company Kenya in 1962 and is headquartered in Kampala, Uganda.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 67

Madhvani Group Of Companies LONGEVITY Private | Uganda, Kampala | Agriculture Madhvani family

The Madhvani Group is one son Mayur Madhvani of the largest diversified CEO 2011-Present

Company private-sector groups in 1912 1958 1971 2011 Present Leadership East Africa, employing over Muljibhai Madhvani son son CEO 1912-40 Jayant Madhvani Manubhai Madhvani 10,000 people. Starting in CEO 1958-71 CEO 1971-2011

Uganda in 1912, the group 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Present has developed into a widely Company 1912 1920 1940 1954 1995 2009 diversified conglomerate Development 1971 2007 with a geographical Kakira Muljibhai Mwera Tea Power station spread into various African Madhvani Kakira Estates and becomes begins trading Sugar is Kajjansi Roses operational countries, the Middle East, in Jinja incorporated are incorporated East East Africa African East African Packaging India and North America. Muljibhai Underwriters is Distributors Solutions Madhvani incorporated, starts supplying incorporated; the starts becoming Liberty the construction group buys five cultivating Holdings industry of hotels and sugar in 2016 lodges

Mehta Group LONGEVITY Private | Uganda, Kampala | Agriculture Mehta family

Mehta Group is a privately owned conglomerate. The company is involved 1924 1960 1967 1992 1993 1994 in insurance, sugar milling, power generation (thermal), metal production/ Agriculture Manufacturing Manufacturing Financial Services Agriculture Trade processing, international trading, electrical Sugar Corp Ugma Cable TransAfrica Uganda TransAfrica of Uganda Engineering Corporation Assurance Hortech Ltd Commerce equipment manufacturing Ltd Corp Ltd Ltd Ltd Ltd and horticulture. It is Mehta Group also operates in headquartered in Kampala, Uganda.

Ntake Group DIVERSIFIED Private | Uganda, Kamapala | Food and Beverages

Ntake family Kaswa Flour Ntake Group is a privately held conglomerate with footprints in bread, confectionery, paper Delta AAA Mineral recycling, drinking water, Tissues Water real estate and transport. It was established in 1978 and incorporated in 1997. The company has five production lines around the country and is headquartered in Kampala, Estates & Uganda. Transport Agriculture

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 68 COUNTRY DEEPDIVES | UGANDA

BUILDING UP MANUFACTURING AND CONSTRUCTION

Ugandan industry is growing fast, supported by an value of the construction sector in current prices rose ambitious infrastructure development agenda and by 172.3% in less than a decade, from $674.4 million in rising interest in its manufacturing sector, which 2010 to $1.8 billion in 2017. Manufacturing’s total value benefits from the value-addition opportunities rose by 111.1% over the same period, from $1.1 billion to presented by its wide agricultural base. $2.3 billion. Although growth has slowed more recently, The African Development Bank reports that it remains on an upwards trajectory: industry grew by industrial sectors including mining and quarrying; 2.1% in the last quarter of 2018 and 0.6% in the first three manufacturing; electricity, gas and water; and months of 2019, according to the Bank of Uganda, with construction accounted for 21.6% of GDP by economic the bank projecting industrial growth will hit 5% annually activity at current prices in 2017. Construction and over the medium term, supported by the expansion of manufacturing made up a combined 78% of industrial industrial parks and public investment in infrastructure. GDP in the same year: manufacturing comprises 43.5% Under its National Development Plan II (NDPII), the of the total, and construction 34.5%. government hopes to push average annual GDP growth to 6% in the coming years, supported by improved Twin Peaks value addition in agriculture, as well as infrastructure Both sectors have been expanding rapidly. The total development and manufacturing growth.

Manufacturing and Construction Family-Owned Businesses in Uganda

Estimated Annual Revenue Breakdown

Industrial Manufacturing

Construction

$500m 1

TOTAL: $100m - $500m 16 1 Companies

22% Of FOB universe $25m - $100m 6

$10m - $25m 8 Construction

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 69

The construction sector is forecast to grow by 10% dedicated 32% of its 2019/20 budget to road and annually over the next five years, double the rate of energy infrastructure, by far the largest allocation of GDP, and supported by a young population – more any sector, as it moves to complete projects including than 50% are under 20 years old, meaning residential the $1.1 billion Kampala-Jinja Expressway and the demand will soar in the coming years – as well as a $6.5 million Isimba Dam bridge. Many big-ticket surge of investment in infrastructure projects. NDPII projects will be developed under a public-private targets major investment in infrastructure including partnership framework, creating new opportunities oil and gas pipelines and refineries, a standard gauge for private investment in the sector. railway, and 1500 km of new highway construction. Manufacturing growth is also set to surge as the government moves to implement NDPII, which aims Infrastructure to increase manufactured exports as a percentage of Indeed, with vehicle ownership growing by 10% total exports from 5.8% in 2014, to 19% by 2020 and annually, Uganda’s road network has become 50% by 2040. extremely over-burdened, while the country also faces Under this mandate, the Uganda Investment a housing shortfall of 8 million units, with demand Authority (UIA) has been actively developing a rising by 300,000 units annually. The government network of industrial parks across the country, with 11 currently in existence, including the flagship Kampala Industrial and Business Park (KIBP), which is home to 37 operational factories, with an Company Headquarters by District additional 99 under construction. The UIA reported there were 291 investors licensed to develop factories at KIBP as of August 2019, with the park expected to employ 200,000 people once fully operational. Investment in industrial parks is climbing, and recent announcements include a new mobile phone

No. of Companies: manufacturing plant at KIBP, which began operations 1 in November 2019, a $450 million aquaculture park 14 announced in the same month, and the $220 million China-Uganda Agricultural Park, which began operations in 2016, and employs more than 1500 people today.

Family-Owned Businesses Industrial manufacturing and construction companies Segments of Operations account for 22% of Uganda’s leading family-owned

100% businesses (FOBs). The secondary sector is unique in East Africa’s FOB landscape for the lack of construction

Multi-Sector firms within it, as all but one are classified as 75% Wires & Cables manufacturers. A closer look at the operations of these Plastic & Rubber FOBs reveals a strong link to the construction sector, Packaging 50% as a number manufacture building materials. A third of Metals & Glass firms work in metals and glass, while another fifth work Chemicals across multiple sectors, often including construction. 25% Basic Materials The rest are split among chemicals, plastics and rubber, Distribution packaging, and wires and cables. Though there are several high-earning firms, more than half have estimated 0% revenues of between $10 million and $25 million a year.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 70 COUNTRY DEEPDIVES | UGANDA CONSTRUCTION AND MANUFACTURING PROFILES ADAPTED FROM ASOKO’S DATABASE

Alam Group Limited LARGE EMPLOYER Private | Kampala, Uganda | Industrial Manufacturing Alam family

Alam Group Limited is a conglomerate in Uganda. It engages in manufacture of steel, processing of aluminium, 1965 1987 1987 1995 2002 2009 2011

agricultural implements, SRM Steel footwear, sugar milling, electricity Rolling Mills generation, floriculture, real estate RUANDA development and management, tourist lodges and motels, and the

manufacture of liquid petroleum Crocodile Tool gas. The company was founded Company in 1989 and is headquartered in Kampala, Uganda.

Bulaimu Muwanga Kibirige (BMK) Group REGIONAL REACH Private | Uganda, Kampala | Industrial Manufacturing Kibirige family

X2 Hotel Bulaimu Muwanga Kibirige Africana Conventional (BMK) Group is a privately Center owned conglomerate. BMK Construction Its primary operations Leasing Company include the importation of motorcycles, spare parts BMK BMK Oil Equipment and heavy-lifting machinery. Group Company The group also oversees Hotel the operations of Hotel Africana Forex Africana in Uganda. It was Bureau incorporated in 1986 and is headquartered in Kampala.

Mulwana Group of Companies Limited LONGEVITY Private | Kampala, Uganda | Industrial Manufacturing Mulwana family

Mulwana Group is a diverse Mulwana Group of business conglomerate with Companies businesses spanning dairy farming, plastics, manufacturing, batteries, investments, horticulture and real 1961 1970 1988 1992 1994 2002 estate. The business started in 1961 in the industrial manufacturing JESA Nsimbe JESA Mixed Estate Investments space and diversified into Farm Ltd Ltd agriculture in 1989 with the establishment of Jesa Mixed Farm Limited Today, JESA Dairy products are sold across East Africa.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 71

Roofings Group REGIONAL REACH Private | Uganda, Kampala | Industrial Manufacturing Lalani family

Roofings Group is an industrial manufacturing company in Uganda. It is engaged in steel construction materials • Roofings Ltd used for domestic, commercial, public • Roofings Rolling Mills and industrial purposes. The company’s • Roofings Polypipes subsidiaries include Roofings Rolling Mills Ltd, Roofings Polypipes and Irrigation Systems Ltd. Roofings Group was founded • Roofings & Steel Ghana in 1994 and is headquartered in Kampala, • Roofings Kenya Ltd Uganda. It also has branches in Nakasero, Industrial Area, Jinja, Gulu, Banda, all in Uganda, and Kigali, Rwanda, Kenya and Ghana Manufacturing Locations Distribution Locations

Shumuk Group of Companies REGIONAL REACH Private | Kampala, Uganda | Industrial Manufacturing

Shukra family Shumuk Aluminium Industry Shumuk Group is a conglomerate in Uganda that Limited began as an aluminium manufacturer established Shumuk Dairy Shumuk in the mid-1980s. It has since spread into other Products Properties Limited Limited sectors and activities, including financial services, travel and tourism, and agriculture. Its property and investment arms manage warehousing and Shumuk production facilities for the group. It works across Tours & Shumuk Travels Investments the East African region, both as a distributor and Limited Limited through manufacturing facilities in Rwanda.

Shumuk Group was incorporated as a limited Kigali liability company in 1988 and is headquartered in Steel & Shumuk Aluminium Forex Kampala. Works Bureau Limited

Tirupati Group Limited LARGE EMPLOYER Private | Uganda, Kampala | Construction Patel family

Tirupati Group is a real estate Tirupati and construction company Group dealing in the development of retail, commercial and residential properties. It also has subsidiaries dealing in bio-waste management and agriculture. It was incorporated Tirupati in 2006 and is headquartered in Bio-Waste Agricultural Management Kampala, Uganda. Development Ltd Ltd

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 72 COUNTRY DEEPDIVES | UGANDA

BUYING IT CONSUMER GOODS & SERVICES

Steady macroeconomic expansion, a growing population activity at current prices in 2017. Wholesale and retail building on the 45 million-strong domestic market and trade accounted for the largest share of the service rising household expenditure have left Uganda’s services sector that year, at 16.1% of its GDP contribution, sector – particularly its consumer goods segment – followed by education at 9.1%, real estate at 8.9%, and well-positioned for strong long-term growth. Half the transport and communications at 5.5%. population is under 15 years old, and 80% is under 30, while population growth is roughly 3% annually, Growth Trends presenting significant new investment opportunities in The value of the wholesale and retail trade, restaurants both the retail segment and broader services sector. and hotels sector nearly doubled between 2010 and Although agriculture remains the country’s dominant 2017, rising from $1.8 billion to $3.7 billion, while sector and a mainstay of the economy, the service education nearly quadrupled, from $604 million to sector has recorded impressive growth in recent years, $2.2 billion over the same period. Transport and and accounted for roughly half of GDP by economic communications grew at a more moderate pace, rising

Consumer Goods and Services Family-Owned Businesses in Uganda

Estimated Annual Revenue Breakdown

Financial Services Telecoms

Health Consumer Goods TOTAL: 31 Transport Retailers Companies

Real Estate Media 45% 25.0% 75.0% Of FOB universe

Leisure & Tourism Education

$500m 4 50.0% 50.0%

14.3% 28.6% $100m - $500m 2 33.3%

7.1% 28.6% 7.1% $25m - $100m 14 7.1% 7.1%

14.0% 29.0%

14.0% $10m - $25m 7

14.0% 14.0% 25.0% 67.0% 33.0% 14.0%

$5m - $10m 3

97% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 73

from $934.4 million to $1.3 billion, while real estate recent macroeconomic growth – GDP growth averaged rose from $1.2 billion to $2 billion. 5.95% between 2007 and 2018 – which has supported Average annual growth in constant prices in the both rising incomes and personal spending. The World wholesale and retail trade, restaurants and hotels sector Bank reports that final consumption expenditure was 3.3%, while transport and communications record- growth averaged 5.2% between 2007 and 2018, and ed a 12.7% annual growth rate over the period. Financial while it remains low, net national income per capita in and insurance activities expansion averaged 9.1%, and constant US dollars rose by 11.4% between 2007 and education averaged a 5.9% increase in constant prices. 2017 to hit $462.53. Although the financial troubles of Nakumatt, the Consumption Kenyan supermarket which had been East Africa’s The retail sector holds high potential for growth. With largest retailer before closing stores across the region, an estimated value of $5 billion, and annual sales of $8 have affected Uganda’s formal retail market, property billion as of 2016, the sector has benefitted from strong consultancy Knight Frank reports that the sector is still growing. The company’s managed retail portfolio saw occupancy rates rise by 7% year-on-year in the first half of 2019 to hit 87%, driven by rising interest Company Headquarters by District from international retailers, including fashion retailers. The firm reports that average retail rental rates ranged from $200 per sq metre per month for spaces smaller than 10 sq metres, to $14.50 per sq metre per month for outlets larger than 1000 sq metres. One notable upcoming retail real estate project is the redevelopment of Metroplex Mall in Naalya, which was No. of Companies: sold to Mauritian company Gateway Delta. The mall will 2 be given a new look and feel and anchored by French 29 supermarket Carrefour, which will open its first store at Oasis Mall in Kampala’s central business district in December 2019. Metroplex will be operated by Dubai’s MAF, which has already established Carrefour outlets in Kenya and across the Middle East. Phase one of the project is forecast to open in the first half of 2020.

33.3% Family-Owned Businesses Segments of Operations Family-owned businesses (FOBs) operating in 100% Uganda’s tertiary sector are diverse, with 25% working

Multi-Sector across multiple sectors and the rest split among Transport another ten sectors. Taken together, companies in this 75% Telecoms space comprise the largest concentration of leading Equipment FOBs in the country, at a full 45% of the landscape. Real Estate Just over a quarter of these firms are multi-sector, with Insurance 50% the largest single sectors of operations being consumer Hotels/ Resort goods, financial services and leisure and tourism, with Health four firms each. Within financial services, three of 25% Education Consumer Goods the four are insurance providers. The services sector

Commercial Bank exhibits the widest range of revenues, though close to

0% half of FOBs in this space are estimated to be in the $25 million - $100 million band.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 74 COUNTRY DEEPDIVES | UGANDA CONSUMER GOODS & SERVICES PROFILES ADAPTED FROM ASOKO’S DATABASE

Hariss International Limited REGIONAL REACH Private | Uganda, Kampala | Food and Beverages Ahmed family

Hariss International Limited is a food and beverage manufacturing company that produces goods under the Riham brand. Its product range includes biscuits, still drinks, 3 Yasser Chadi Izzat mineral water, soft drinks brothers Ahmed Ahmed Ahmed and energy drinks. It was incorporated in 2005 and is headquartered in Kampala, 23 8 Uganda. brands countries

Imperial Group Of Hotels Limited LARGE EMPLOYER Private | Uganda, Kampala | Leisure and Tourism Hirji family

Imperial Group of Hotels Limited owns and operates a chain of five hotels in Uganda, two in the capital, Kampala and three in Entebbe, where it also owns serviced apartments. Kampala Entebbe The company is based in Kampala, Uganda.

Imperial Imperial Grand Imperial Imperial Imperial Royale Imperial Resort Botanical Golf Apartments Hotel Hotel Beach Beach View Hotel Hotel Hotel

Mukwano Group of Companies Subsidiary DIVERSIFIED Private | Uganda, Kampala | Industrial Manufacturing Gulf Kamali family Stream Investments Sector Limited Mukwano Group of Companies is a conglomerate company in Uganda. It has interests in the manufacturing of fast-moving A. K. Oils and Fats (U) consumer goods including edible oils and Limited fats, laundry and toilet soaps, powder and liquid detergents, personal care and hygiene products, domestic and commercial plastics, and energy drinks and drinking water. The company also engages in logistics and supply chain management, agriculture, financial A. K. services and property development. Mukwano Mukwano Transporters Group of Companies was founded in 1986 and Personal Limited Care Products is headquartered in Kampala, Uganda. Limited

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA | COUNTRY DEEPDIVES 75

Ruparelia Group of Companies DIVERSIFIED Private | Uganda, Kampala | Financial Services 1 Ruparelia family company

Ruparelia Group of Companies 2 8 is a conglomerate in Uganda. It companies companies offers, through its subsidiaries, Entertainment banking, insurance, Real Estate Hospitality hospitality, conventions and leisure, education, property 2 development, property 5 companies companies management, and floriculture services. Ruparelia Group of Financial Services Floriculture Companies was founded in 1985 and is headquartered in 1 4 Kampala, Uganda Insurance Education company companies

Spear Group DIVERSIFIED Brands Private | Uganda, Kampala | Media Spear Wavamunno family Wavah Motors FM Segment Ltd Ltd Spear Group is a multi Media business company with Fancy Star Times Furniture businesses in various sectors Digital Ltd Satellite TV such as: broadcasting, Services Spear beverages, automobile Manufacturing Group Wavah dealerships, real estate, Consumer Books Goods Ltd insurance, investments Tumpeco Agriculture and textiles business Ltd Real Estate Wavah engagements. The first Water venture was Spear Motors Ltd Nakweero Limited, which was Mixed Farm Spear established in 1973. It is House based in Kampala, Uganda.

Translink Uganda Limited REGIONAL REACH Private | Uganda, Kampala | Consumer goods Thankrar family

Translink Uganda Limited is a consumer goods distribution company in Uganda representing well-known brands from global multinationals. Its core product lines cover food and non-food fast-moving consumer goods, tyres, electronics and mobile phones. As well as national distribution, it also operates in Kenya and Rwanda. Translink Uganda Ltd was incorporated in 1991 and is headquartered in Kampala, Uganda.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

COUNTRY DEEPDIVES TANZANIA 78 COUNTRY DEEPDIVES | TANZANIA

GOLDEN TOUCH TANZANIA

Tanzania’s macroeconomic growth has benefitted from capita income from 2010 levels to $1500, and raising rapid recent industrialisation, pushing construction and foreign direct investment (FDI) to $9 billion. manufacturing to become important economic drivers. Industrial targets include expanding electricity Macro growth will remain on a strong upwards trajectory generation from 1501 MW to 4915 MW, attaining 10% in the near term, with the rich agricultural base providing annual manufacturing growth, and boosting the share the necessary foundation for the country to meet its mid of manufacturing exports to 24% of the total. and long-term manufacturing and export targets. Industrial development is accelerating as the GDP growth averaged 6.73% between 2013 and 2018 government moves to meet these targets. Construction and remained high in 2019, with the Tanzania National is the leading industrial sector at present, accounting Bureau of Statistics (TNBS) reporting that the economy for nearly half of industrial GDP in 2018. It recorded grew by 7.2% during the second quarter 2019. This consistent double-digit expansion between 2010 and strong performance was supported by the construction, 2017 – annual growth averaged 12.56% over the period – mining and communication sectors, which grew by as a result of ongoing public infrastructure investment on 19.6%, 17.2% and 10.3%, respectively. Full-year growth big-ticket projects including a multibillion-dollar, 2190- was estimated at 6.8% in 2019, according to the Africa km standard gauge railway connecting Dar es Salaam Development Bank’s 2020 outlook. to the country’s East African Community neighbours, The service sector accounted for 41.5% of GDP in the 2100-MW Rufiji Hydropower Project, valued at $2.9 the second quarter of 2019, followed by agriculture billion, and the $751.3 million Malindi-Bagamoyo highway and mining at 32.9% and industry at 25.7%. In 2018, connecting six coastal towns in Kenya and Tanzania. services accounted for 40.2% of GDP, followed by agriculture and mining (30.7%) and industry (29.1%). Tanzania FOB Sector

Performance Tanzania is a major agricultural producer with a diverse production base. Although gold is easily the country’s largest export earner, accounting for $1.5 billion, or 66.5% of total revenues in 2018, Tanzania also exports significant quantities of tobacco, coffee, 22 cotton and tea. TNBS data shows that tobacco exports FOBs accounted for the largest share of agricultural sales abroad, with revenues reaching $265.4 million in 2018, accounting for 11.8% of total exports and 39.5% of FOBs by Sector

overall agricultural exports. Tobacco was followed Transport by coffee at $146.9 million, or 21.8% of agricultural 9.1% Services exports, and cotton at $68.4 million, or 10.2%. 4.5% Wholesale and retail trade accounted for the largest Oil & Gas percentage of service sector GDP in 2018, reaching 4.5% Agriculture Mining a value of $5.1 billion, or 24.7% of total services. and Metals 27.3% Transport and storage followed at $3.6 billion, and 4.5% Information finance and insurance activities, at $2.1 billion. Technology 4.5%

Industrial Development Plan Manufacturing Construction 18.2% The government’s latest five-year development plan, 13.6% running until 2020/21, seeks to boost industrialisation to transform the country’s economy through $48 Food & Beverages Consumer Goods billion of public and private investment, with the goal 4.5% 9.1% of obtaining 10% GDP growth by 2021, doubling per

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE TANZANIA | COUNTRY DEEPDIVES 79

Manufacturing followed by textiles and clothing (10%), chemicals Accounting for 6.4% of GDP in the second quarter (8.5%), and other smaller sub-segments including 2019, up from 4% year-on-year, manufacturing is beverages, leather, paper and plastics. another major industrial growth driver. African Development Bank data shows that the Family-Owned Businesses sector’s GDP contribution in current prices tripled Tanzania’s leading family-owned business (FOB) between 2010 and 2017, rising from $1.3 billion to $3.9 landscape is diverse, with firms across ten billion. It has been one of the fastest-growing sectors sectors and the majority operating within several of the Tanzanian economy, with growth hitting 8.9% industries. Agriculture, construction and industrial in 2010, 10% in 2014, 10.8% in 2016, and 8.2% in 2017. manufacturing have the highest concentrations of top TNBS, meanwhile, reports that manufacturing’s GDP FOBs, together representing some 60% of the total. contribution in current prices rose by 56.7% between Roughly half of the universe of FOBs have estimated 2013 and 2018, from $2.9 billion to $4.5 billion. revenues over $25 million a year, while the other The government reports manufacturing accounts half lies within the $10 million - $25 million revenue for 53% of Tanzania’s general industrial structure, band. The majority have their headquarters in Dar followed by processing (43%) and assembling (4%). es Salaam, though close to one-third are spread Much of the sector is centered on processing across another five regions making Tanzania’s FOB local agricultural commodities, and food processing landscape one of the more widely distributed in terms accounts for 24% of total manufacturing activities, of geographical base.

Company Headquarters by Province Annual Revenue Breakdown

$500m 4.6%

$100m - $500m 22.7%

$25m - $100m 9.1%

x2

$10m - $25m 44.5% x4 No. of Companies: 1 2 15

FOB Employee Range BAND D: 201-500 BAND E: 501-1000 BAND F: 1001-5000 BAND G: 5001-10000 BAND 10,000+

0% 25% 50% 75% 100% 64% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 80 COUNTRY DEEPDIVES | TANZANIA COMPANY PROFILES ADAPTED FROM ASOKO’S DATABASE

Abood Group DIVERSIFIED Private | Tanzania, Morogoro | Transport Subsidiaries Abood family Abood Abood Bus Traders Industry Service Abood Group, founded by the Abood family, is Co Ltd a conglomerate in Tanzania. The company has

grown from a food and beverage wholesaler Transport Wholesale MA established in 1941 to a group that offers Logistics Cargo Truckers services in transport and logistics, media, ABOOD tour and hunting safaris, oil marketing and Tourism GROUP Gaje Safaris Marine clearing/forwarding services. Its subsidiaries Ltd Oil & Gas Investment include Abood Bus Service Ltd, Abood Media Company Ltd, Apel Petroleum Ltd, Bushman Media Hunting Safaris Ltd, Gaje Marine Investment, Apel Petroleum MA Cargo Truckers & Forwarders Ltd, and MA Traders Company Ltd. Abood Group is based in Abood Media Morogoro, Tanzania. Co Ltd

Advent Construction Limited LARGE EMPLOYER Private | Tanzania, Dar es Salaam | Construction Dhruv Jog family

Advent Construction Limited is a construction Segments Services Completed Works company that specialises in heavy civil and building Design 10 Civil construction projects as an Industrial & Build Works engineering, procurement Works and construction (EPC) 29 contractor across the region. It Interior Commercial Building Design was incorporated in 1996 and Works is headquartered in Dar es Salaam, Tanzania. Residential

Amir Hamza (Tanzania) Limited EXPORT-FOCUS Private | Tanzania, Bukoba | Agriculture Amir Hamza family

Amir Hamza is an agricultural company in Tanzania. The company is involved in the coffee sector, producing a variety of instant coffee blends as well as green beans. The company exports instant coffee 5000-tonne p/a Amir Hamza begins instant coffee factory Amimza brand both in bulk and for retail under selling green coffee opens name registered beans the Amimza brand. Amir Hamza (largest in East Africa) was founded in 1994 and is based in Bukoba City, Tanzania. 1994 2015 2016

Transitions to instant coffee

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE TANZANIA | COUNTRY DEEPDIVES 81

Bahari Bounty Group DIVERSIFIED Private | Tanzania, Mwanza | Agriculture Bhagat family

Bahari Bounty Group is a conglomerate in Tanzania. It deals with fishing, 1992 1998 2004 2007 2010 2014 poultry farming, real estate, equipment Vicfish Argo Tango Bounty Kuku Poa Bahari Bounty Hotel Mwanza established Properties established and agriculture. Food Ltd established established (maize & rice established (poultry Bhari Bounty was established (hospitality) (fish exports) (seafood farming) (real estate) farming) established in 1992 and processing) is based in Mwanza, Kagera Earth Moving Tanzania. Company established (leasing)

Bakhresa Group Limited DIVERSIFIED Private | Tanzania, Dar es Salaam | Food and beverages

Bakhresa family PAN AFRICAN SUBSIDIARIES

Bakhresa Group is an industrial conglomerate in Tanzania. Its business interests include food and beverages, agro-processing, specialty packaging, logistics, marine passenger services, petroleum and entertainment. Companies Bakhresa Grain Milling within the group include Azam Football Club, (Burundi) Azam Media Ltd, Bakhresa Grain Milling Uganda Ltd, Said Salim Bakhresa and Company Ltd, Bakhresa Food Products Ltd and United Group Ltd. Bakhresa Group was founded in 1983 and is headquartered in Dar es Salaam, Tanzania. It has subsidiaries in Kenya, Uganda, Burundi and Rwanda.

Fabec Investment Limited REGIONAL REACH Private | Tanzania, Dar es Salaam | Construction Building Civil Markyao family Engineering Engineering

Fabec Investment Limited is a multi- disciplinary international contractor specialising in civil engineering works, mining operations and services, telecommunication engineering, electrical engineering, building engineering logistics and general supplies services. Logistics Telecoms It has operations in Kenya, Uganda and Egypt, all focused on telecommunications works. Fabec Investment Limited was founded in 2003 and is headquartered in Dar es Salaam, Tanzania. Electrical Mining Engeneering Services

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 82 COUNTRY DEEPDIVES | TANZANIA COMPANY PROFILES ADAPTED FROM ASOKO’S DATABASE

Highland Estates Limited Agriculture LONGEVITY Private | Tanzania, Dar es Salaam | Construction Mulla family

Machine Sales Real Estate Highland Estates Limited is a commercial company in Tanzania. Launched in 1930 with agricultural roots, it now engages in civil building, agricultural activities, machine sales, Civil & Building Water Bottling real estate, transportation and crane hire, and water bottling. It is based in Dar es Salaam, Tanzania.

Transport & Crane Hire

Jamana Printers Limited LONGEVITY Private | Tanzania, Dar es Salaam | Services - Commercial Printing Kassamali Husein family

Binding & Jamana Printers Limited is an finishing industrial printing company Commercial Flexo printing printing offering commercial printing, stationary, labels, textbooks, binding, packaging and Textbook Stationary promotional printing alongside printing in-house design and pre-press services. Jamana Printers was founded in 1977 and is based in In-house Packaging Dar es Salaam, Tanzania. design Promotional printing

Mohammed Enterprises Tanzania Limited REGIONAL REACH Private | Tanzania, Dar es Salaam | Agriculture UAE Dewji family (DUBAI)

Horizon AFRICAN SUBSIDIARIES Commodities Mohammed Enterprises Tanzania Ltd Ltd DMCC Rainbow (MeTL) is a holding company in Tanzania, Commodities Ltd TANZANIAN SUBSIDIARIES

with businesses across a wide range of MeTL industries. The company’s subsidiaries Uganda Ltd are involved in trading, agriculture, manufacturing, energy and petroleum, financial services, telecommunications, real estate, infrastructure, transport, MeTL logistics and distribution. MeTL was Zambia Ltd established in 1970 and is headquartered MeTL Mozambique in Dar es Salaam, Tanzania. It also has Lda operations in ten other African countries.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE TANZANIA | COUNTRY DEEPDIVES 83

Motisun Group REGIONAL REACH Private | Tanzania, Dar es Salaam | Construction Motibhai Patel family

Motisun Group is a privately owned diversified business conglomerate based in Tanzania with various manufacturing Subsidiaries companies in building materials such as MMI Steel Ltd steel, roofing products, cement, plastic Mamba Cement Company Ltd tanks, pipes and paints, among others. Maganaga Matitu It is also present in sectors such as real Resource Development estate, logistics, food and beverages, and Ltd hospitality. As well as Tanzania, Motisun Kiboko Plastics Group also has manufacturing facilities Kiboko Paints Ltd in Mozambique, Uganda and Zambia. Sayona Drinks Limited Motisun Group was established in 1994 Pearlsun Hotels & Resort and is based in Dar es Salaam, Tanzania. MM Estate

Red Dot Distribution Limited REGIONAL REACH Private | Tanzania, Dar Es Salaam | Information Technology Bharwani family

Red Dot Distribution is an IT distribution company founded by the Bharwani operations open in operations open in Group in 2001. It has operations across East and Southern Africa, including Kenya, Ethiopia, Key Regional 2001 2005 2009 2011 2012 Uganda, Rwanda, Developments Botswana, Zimbabwe and Namibia.

Red Dot Distribution operations open in operations open in founded

Sunflag Tanzania Limited LONGEVITY Private | Tanzania, Arusha | Industrial Manufacturing Export Bhursan Bhardwaj family Locations Sunflag (Tanzania) Limited is a textile and clothing company in Tanzania. It engages ring spinning, yarn twisting, circular knitting, warp knitting, yarn and fabric processing, a woven made up unit, mosquito net manufacturing, knitted garmenting with in- house embroidery and screen printing. Sunflag (Tanzania) Ltd operates as a subsidiary of Sunflag Group, founded by the Bhardwaj family in Kenya in the 1930s. Tanzania was the firm’s second expansion after Nigeria; it was incorporated in 1965 and is headquartered in Arusha, Tanzania. Sunflag also has operations in India, Thailand and North America.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

COUNTRY DEEPDIVES RWANDA 86 COUNTRY DEEPDIVES | RWANDA

LOCKING IN GROWTH RWANDA

A landlocked country with just 12.5 million residents, infrastructure. Projects under development include Rwanda is one of East Africa’s smallest economies, two regional rail lines connecting Rwanda to ports although it is also one of its fastest-growing. GDP in Mombasa and Dar es Salaam, part of the Northern growth averaged 7.6% between 2008 and 2018, Corridor Integration Project, as well as upgrades to supported by sound government policies targeting 1210-km of highways, the 80-km Kigali city ring road, public investment in infrastructure and poverty and around 350 km of roads in secondary cities. The reduction, as well as rapid expansion of the services government is also planning to build a second airport to sector. increase passenger and cargo freight handling capacity. The National Bank of Rwanda (NBR) reports that Although manufacturing is much smaller in value, it the economy grew by 9.5% in fiscal year 2018/19, is also benefitting from government initiatives including against 8.9% in 2017/18, supported by strong Vision 2020, the National Strategy for Transformation, performance of the tertiary sector, which accounted and the long-term Vision 2050 plans, which seek to for 4.5 percentage points of GDP growth, followed transform Rwanda into an upper-middle-income country by industry (2.9 percentage points) and agriculture by 2035, and high-income country by 2050. (1.2 percentage points). The World Bank, meanwhile, The Ministry of Trade and Industry’s Made in estimates growth hit 8.67% in 2018, and projected it Rwanda development agenda, which was published would moderate slightly to 8.5% in 2019. in December 2017, supports these targets through Comprising agriculture and mining, the primary sector accounted for 33.9% of GDP by activity in Rwanda FOB Sector current prices in 2018, the secondary sector for 14.8%, and the tertiary sector for 51.4%, according to African Development Bank data. The country’s secondary sector, which includes manufacturing, construction, electricity, gas and water, has been the fastest-growing in recent years. The NBR reports that industry grew by 15.9% in 2018/19, up from 8.1% in 2017/18, supported by 14 FOBs the construction, manufacturing and electricity sectors, which expanded by 24.9%, 12% and 9.2%, respectively. Services rose by 9.3% over the same period, down from 9.7% in 2017/18, while agriculture rose by 4.6%.

Agriculture FOBs by Sector

Agriculture is the largest single sector of Rwanda’s Telecommunications economy, accounting for 31.2% of GDP by activity in 8.3% current prices in 2018. Its GDP contribution in current Oil & Gas prices has more than doubled since 2010, rising from 8.3% Agriculture $1 billion in 2010 to $2.6 billion in 2018. Rwanda is 25.0% home to rich agricultural land and a diverse base of

cash crop exports. The largest by volume are bananas, Industrial Manufacturing sweet potatoes, cassava, potatoes and beans. 16.7% Construction 16.7% Industry Food & Rwanda’s construction sector has boomed in recent Beverages Consumer 16.7% Goods years, with the government channelling roughly 10% 8.3% of its annual budget into transportation and other

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE RWANDA | COUNTRY DEEPDIVES 87

five key objectives including development of sector- and communications sector experienced the strongest specific strategies, reduced cost of production, increase in 2018, at 17.9%, followed by retail and improved quality, backward linkages and education hospitality, at 13.8%, and financial and insurance and awareness. The country has already reached a activities at 10.1%. major recent manufacturing milestone: in October 2019, Rwanda’s Mara Group launched the first- Family-Owned Businesses ever “Made in Africa” smartphones, which are Though small, Rwanda’s universe of leading family- manufactured at a $50 million plant in Kigali with owned businesses (FOBs) plays an important role in capacity for 10,000 devices per day. the economy, especially in the agriculture, food and beverage, construction and manufacturing sectors, Services where they are most heavily concentrated. Given the The service sector has also risen to become a key smaller size of the national market compared to its growth driver, supported by rapid expansion of the neighbours, it is unsurprising that as a whole Rwanda’s transport and communications, retail and hospitality, leading FOBs have lower revenues, with two-thirds and financial services industries, which recorded estimated to be in the $10 million - $25 million band, average annual growth rates of 8%, 8.6% and 11.4%, and none reporting estimated annual earnings over respectively, between 2010 and 2018. The transport $100 million.

Company Headquarters by Province Annual Revenue Breakdown

$25m - $100m 25%

x3 $10m - $25m 66.7%

x2

$5m - $10m 8.3%

No. of Companies: 1 10

FOB Employee Range

BAND D: 11-50 BAND E: 51-200

0% 25% 50% 75% 100% 83% of FOBs represented

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 88 COUNTRY DEEPDIVES | RWANDA COMPANY PROFILES ADAPTED FROM ASOKO’S DATABASE

Caferwa Limited EXPORT-FOCUS Private | Rwanda, Kigali | Agriculture Kananura family Nkora washing station Rulindo washing Caferwa Limited is a coffee Capacity: 500 tonnes station Capacity: 200 tonnes exporter working across the coffee value chain. It Nkora Farmer provides haulage, grading Association and packing services to = 750

ready locally produced Rutsiro washing Kigali Farmer coffee for export. The station Association company depends on small- Capacity: 200 tonnes = 350 scale farmers for the supply Nyamaseke of special caferwa coffee washing station Capacity: 200 tonnes beans. It is headquartered in Yamagabe Kigali, Rwanda. Cyamgugu Farmer washing station Association Capacity: 200 tonnes = 250

Fair Construction Limited LARGE EMPLOYER Private | Rwanda, Kigali | Construction Mugisha family

Fair Construction Limited originally launched its building and civil works operations in Uganda in 1986 and was established in Rwanda in Staffing structure 15 250 1995. Fair Construction undertakes 2200 Management public sector contracts, in Technical staff particular for roads and earthworks Labourers projects, and is also involved in power, water and industrial Business lines infrastructure projects in areas

such as hydro power projects, bulk Stone Quarry Ready-Mix Material Construction Concrete Concrete Delivery Blocks & Paver water storage, roads and bridges. Batching Plant Fabrication Yard

Karongi Tea Factory Limited SOCIAL IMPACT Private | Rwanda, Karongi | Agriculture Mutangana family

Karongi Tea Factory Limited is a privately owned Rwandan company operating in the tea sector. Its principal business is growing, processing and marketing Kibuye, Karongi of Karongi brand tea, which is District grown in the Karongi District of 2000 hectares western Rwanda. The company also exports CTC black tea to Kenya. Karongi Tea Factory was formed in 2009 and has created employment opportunities for more than 2,000 people.

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE RWANDA | COUNTRY DEEPDIVES 89

Sina Gerard Ese Urwibutso LARGE EMPLOYER Private | Rwanda, Rulindo | Agriculture Sina Gerard family

Ese Urwibutso/Sina Gerard is an agro-processing company producing jams, oils, flours, fruit juices and wine. The company also Jams & Honey Edible Oils Flours Beverages provides inputs including Products: Products: Products: Products: seeds and technical advice Strawberry jam Akabanga chili oil Composite flour Agashya squash to local farmers from whom Honey Akabanga olive oil Sorghum flour Akandi natural mineral water Millet flour the majority of its raw Akarusho wines materials are sourced. It is located in Nyirangarama, 70% Rwanda. of revenue

Sulfo Rwanda Industries Limited LONGEVITY Private | Rwanda, Kigali | Consumer goods Jaffer family

Sulfo Rwanda Industries Kigali Limited is a manufacturer Rue du Marche, Kigali Cosmetics, Plastics & Tajdin H. and distributor of fast- Detergent Division Jaffer moving consumer goods based in Kigali, Rwanda. The Founded: 1962 Kigali company exports cosmetics, Rue du Lac Lhema, plastics, detergent, carton Kigali 150 Soaps, Packaged Products and water to Burundi, DRC Drinking Water and Uganda. Founded in Division 1962 as a soap company, it Gikondo Carton Factory is now one of the country’s Tins & Casserole Division leading manufacturers. It is Raw Material Depot LPG Filling Station based in Kigali, Rwanda.

Star Construction and Consultancy Limited DIVERSIFIED Private | Rwanda, Kigali City | Construction Kazawadi family

Star Construction and Consultancy Limited is a construction company in Rwanda founded in 1996. It specialises in the building of water-related infrastructure, such as irrigation and drainage systems. The company also engages in the Construction Materials Management Training Legal manufacture of concrete products • Building works • Concrete • Construction • Engineering • Arbitration and consultancy in project • Irrigation products project CPDs • Commercial management management and professional works • Professional mediation • Enterprise skills training services. It is located in Resource Kigali, Rwanda. Planning

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE

4 COMPANY DIRECTORY 92 COMPANY DIRECTORY| KENYA

CONTACT US AT [email protected] FOR FULL DATASET

KENYA A-Z Petroleum Products (Kenya) Limited Associated Construction Company Kenya Limited Oil and Gas Construction http://associated.co.ke AAA Growers Limited Agriculture Astrol Petroleum Company Limited https://www.aaagrowers.co.ke/ Oil and Gas http://astrolpetroleum.com/ Abyssinia Iron And Steel Limited Construction Atta Kenya Limited Food and Beverages Acceler Global Logistics Limited http://www.attakenya.co.ke Transport http://www.acceler.co.ke AutoXpress Limited Retail Acme Containers Limited https://www.auto-xpress.co.ke/ Industrial Manufacturing http://acmecontainers.com/ Awadh Omar Bayusuf & Sons Limited Transport African Banking Corporation Limited Financial Services Ayoti Distributors Limited http://www.abcthebank.com/ Food and Beverages

African Gas and Oil Company Limited Azure Hotel Limited Oil and Gas Leisure and Tourism https://www.azurehotelnairobi.com/ Agrifresh Kenya Limited Food and Beverages Bakex Millers Limited Food and Beverages Ainu Shamsi Energy Limited http://www.bakex.co.ke/ Oil and Gas Balaji EPZ Limited http://www.ainushamsi.com/ Industrial Manufacturing Akamba Steel and General Wholesalers Limited https://www.eatradehub.org/balaji_group Construction Basco Products (Kenya) Limited Alibhai Ramji Mombasa Limited Industrial Manufacturing Food and Beverages http://bascopaints.com

All Pack Industries Limited Bash Hauliers Limited Industrial Manufacturing Transport https://www.allpack.co.ke/ http://www.bashhauliers.co.ke/

Alpha Grain Millers Limited Benjuma Distributors Limited Food and Beverages Food and Beverages https://alphagrainmillers.com/ Bidco Africa Limited Alpharama Limited Food and Beverages Consumer Goods http://www.bidcoafrica.com/

Amritlal Sojpar Shah Wholesalers Limited Blowplast Limited Retail Industrial Manufacturing APA Insurance Limited http://blowplastkenya.com/ Financial Services Blue Bird Aviation Limited http://www.apainsurance.org Transport Apex Africa Resources Limited http://www.bluebirdaviation.com Financial Services Blue Nile Rolling Mills Limited http://www.apexafrica.com/ Industrial Manufacturing Aquamist Limited http://bluenile-group.com/ Food and Beverages BN Kotecha and Sons Limited http://www.aquamistwater.com Retail Aristocrat Concrete Limited Bobmil Industries Limited Construction Industrial Manufacturing http://sameer-group.com/construction/aristocrats- concrete-ltd/ https://www.bobmilgroup.com/ Associated Battery Manufacturers East Africa Limited Bowip Agencies Limited Industrial Manufacturing Consumer Goods http://www.abmeastafrica.com/ http://www.bowipagencies.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COMPANY DIRECTORY 93

Brand Limited Dawa Group Limited Construction Healthcare http://www.brandltd.co.ke/ http://www.dawalimited.com/about-us/group-profile/

Broadway Bakery Limited Daykio Plantations Limited Food and Beverages Real Estate http://www.broadway.co.ke/ https://daykio.com/

Bunson Travel Service Limited Dayliff Holdings Limited Leisure and Tourism Industrial Manufacturing https://www.bunsontravel.com/ https://www.dayliff.com/

Butali Sugar Mills Limited Desbro Kenya Limited Agriculture Industrial Manufacturing http://desbroeastafrica.com/ Buzeki Dairy Limited Food and Beverages Devji Meghji and Brothers Limited http://www.buzeki.co.ke Agriculture

C & P Shoe Industries Limited Devki Group of Companies Consumer Goods Industrial Manufacturing http://cpshoes.com/ http://devkigroupke.com/

Capwell Industries Limited Devki Steel Mills Limited Food and Beverages Industrial Manufacturing http://www.capwell.co.ke/ http://devkigroupke.com/steel/

Career Connections Limited Diamond Industries Limited Services Food and Beverages http://www.pangasoap.co.ke Carton Manufacturers Limited Industrial Manufacturing Diamond Wholesalers Limited https://carton.co.ke/ Consumer Goods Chandarana Supermarket Limited https://diamondwholesalersltd.com/ Retail Dodhia Packaging Limited http://foodplus-amcard.com/index.php Industrial Manufacturing Chandaria Industries Limited http://www.dplkenya.com/ Consumer Goods Dola Petroleum (K) Limited http://www.chandaria.com/ Oil and Gas Chloride Exide Kenya Limited Dominion Engineering Works Limited Industrial Manufacturing Construction https://www.chlorideexide.com/ http://dominion.co.ke/ Cleanshelf Supermarkets Limited Retail Dominion Petroleum Kenya Limited https://www.cleanshelf.co.ke/ Oil and Gas http://dominionpetroleumltd.com/ Coast Cables Limited Industrial Manufacturing Doshi and Company Hardware Limited http://www.coastcables.com/ Industrial Manufacturing http://www.doshi.co.ke/ Coastal Bottlers Limited Industrial Manufacturing Doshi Enterprises Limited Industrial Manufacturing Comply Industries Limited http://www.doshienterprises.com/ Industrial Manufacturing http://complykenya.com/ Doshi Group of Companies Industrial Manufacturing Corrugated Sheets Limited Industrial Manufacturing http://www.doshigroup.com/index.php https://steelitems.com/ DPL Festive Limited Creative Innovations Limited Food and Beverages Construction http://festivebrands.com/

Crown Petroleum Kenya Limited Dudutech Kenya Limited Transport Industrial Manufacturing http://crowngroup.co.ke/ https://www.dudutech.com/ Davis and Shirtliff Limited Dyer and Blair Investment Bank Limited Industrial Manufacturing Financial Services https://www.davisandshirtliff.com/ https://www.dyerandblair.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 94 COMPANY DIRECTORY| KENYA

CONTACT US AT [email protected] FOR FULL DATASET

Dynamic Petroleum Investments Limited Furniture Palace International Kenya Limited Oil and Gas Consumer Goods https://www.furniturepalacekenya.com/ East African Elevator Company Limited Construction Futures Energy Company Limited http://eaecl.net Oil and Gas http://futuresenergy.co.ke East African Growers Limited Agriculture G Issaias and Company Kenya Limited http://www.eaga.co.ke/ Construction

East African Sea Food Limited GA Insurance Limited Agriculture Financial Services http://www.alphaafrica.com https://www.gakenya.com

Edible Oil Products Limited Galsheet Kenya Limited Food and Beverages Industrial Manufacturing

EldoHosp Pharmaceuticals Limited Ganatra Plant and Equipment Limited Healthcare Retail http://www.epl.co.ke http://www.gpe.co.ke/

Eldoret Packers Limited Gap Fabricators Limited Industrial Manufacturing Construction

Elgon Kenya Limited Gemmology Kenya Limited Agriculture Consumer Goods https://elgonkenya.com https://gem-a.com/component/k2/atcs/gemmology- kenya-ltd-nairobi Enke Investments Limited Financial Services General Plastics Limited Industrial Manufacturing Epco Builders Limited https://www.genplastkenya.com Construction http://www.epcobuildersltd.com/ General Printers Limited Services Equator Bottlers Limited http://www.gplflexibles.com/ Food and Beverages Global Petroleum Products Kenya Limited Erdemann Property Limited Oil and Gas Construction http://www.erdemann.co.ke/ Gulf Stream Investments Limited Financial Services Excel Chemicals Limited Food and Beverages HACO Industries Kenya Limited Industrial Manufacturing Export Trading Company Inputs Kenya Limited http://www.haco.co.ke/ Industrial Manufacturing Harleys Limited http://www.etgworld.com Healthcare Family Bank Kenya Limited https://harleysltd.com/ Financial Services Hasbah Kenya Limited https://familybank.co.ke/ Consumer Goods First Community Bank of Kenya Limited http://www.hasbahkenya.co.ke/ Financial Services Hashi Energy Limited https://www.firstcommunitybank.co.ke Oil and Gas Five Star Agencies Limited https://www.hashienergy.com/ Construction Hayer Bishan Singh and Sons Limited http://nula.co.ke/about.html Construction Foam Mattress Limited Hebatullah Brothers Limited Consumer Goods Construction Fones Direct Limited http://www.hebatullah.org/ Retail Heller Petroleum Limited Forest Gate EPZ Limited Oil and Gas Agriculture http://www.hellerpetroleum.com http://www.aaagrowers.co.ke/ Hi-Plast Limited Fresh An Juici Limited Industrial Manufacturing Food and Beverages http://www.hiplast.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COMPANY DIRECTORY 95

Hot Point Appliances Limited Kenya Coach Industries Limited Consumer Goods Transport https://hotpoint.co.ke/ http://kci.co.ke/

I and M Holdings Limited (I&M) Kenya General Industries Limited Financial Services Industrial Manufacturing https://www.imbank.com/ https://www.gilkenya.com/

ICEA Lion Group Kenya Orient Insurance Company Limited Financial Services Financial Services https://www.icealion.com/ http://www.korient.co.ke

Ideal Ceramics Limited Kenya Sweets Limited Construction Food and Beverages http://www.idealceramics.com/ http://kenyasweets.com/

Interbeauty Products Limited Keroche Breweries Limited Consumer Goods Food and Beverages http://www.nicenlovely.com/ http://www.kerochebreweries.com/

Jamii Telecommunications Limited Khetia Drapers Limited Telecommunications Retail https://www.faiba4g.co.ke/ http://www.khetia.com/#KDLAdvert

Jumbo Foam Matresses Industries Limited Kibos Pulp and Paper Mills Limited Consumer Goods Consumer Goods Kalptaru Gems Limited http://kibossugar.co.ke/index.php?id=10 Mining and Metals Kibos Sugar and Allied Industries Limited Kanini Haraka Enterprises Limited Agriculture Food and Beverages https://www.kibossugar.co.ke/

Kapa Oil Refineries Limited Kinangop Dairy Limited Food and Beverages Food and Beverages http://www.kapa-oil.com/ http://kinangopdairy.co.ke/

Karebe Gold Mining Limited King’s Wear Limited Mining and Metals Retail http://marisafrica.com/karebe-gold-mining-limited/ http://kingscollection.co.ke/

Karirana Estates Limited Kingsway Tyres Limited Food and Beverages Retail http://www.karirana.co.ke/ http://www.kingswaytyres.com

Karuturi Limited Kitui Flour Mills Limited Agriculture Food and Beverages https://www.karuturi.com/ http://kituiflourmills.co.ke/

Kassmatt Supermarkets Limited Kofinaf Company Limited Retail Agriculture

Ken Bookmakers (2002) Limited Kongoni River Farm Limited Leisure and Tourism Agriculture

Ken Tobacco EPZ Limited Kotecha Wholesalers Limited Consumer Goods Food and Beverages http://www.kotechawholesalers.com Kenafric Bakery Limited Food and Beverages Krishna Chemists Limited https://www.kenafricind.com Retail http://www.krishnachemists.com Kenafric Industries Limited Industrial Manufacturing Kyoga Hauliers Limited https://www.kenafricind.com/ Transport http://kyoga.co.ke/ Kenblest Group Food and Beverages Laboratory and Allied Pharmaceuticals Limited http://www.kenblestgroup.com Healthcare http://laballied.com/ Kenpoly Manufacturers Limited Industrial Manufacturing Lalji Ramji Filling Station Limited https://kenpoly.com/ Oil and Gas

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 96 COMPANY DIRECTORY| KENYA

CONTACT US AT [email protected] FOR FULL DATASET

Landmark Holdings Limited Mjengo Limited Construction Food and Beverages http://www.lhl.co.ke http://www.mjengo.com/

Laneeb Plastics Industries Limited Mohan Meakin Kenya Limited Industrial Manufacturing Food and Beverages http://www.laneeb.co.ke/ Mombasa Cement Limited Laxmanbhai Construction Limited Industrial Manufacturing Construction https://mombasacement.com/ http://laxconke.com/ Mombasa Maize Millers Limited London Distillers Kenya Limited Agriculture Food and Beverages Motrex Limited http://londondistillers.com/ Transport

Lucky Africa Company Limited Mount Elgon Orchards Limited Oil and Gas Agriculture http://mtelgon.com/en/ Maathai Supermarket Limited Retail Mt. Kenya Tobacco Stores Limited Retail Magnate Ventures Limited http://mtkenyagroup.co.ke Services http://www.magnate-ventures.com/ Mufindi Paper Limited Industrial Manufacturing Manji Food Industries Limited Food and Beverages Mulji Devraj and Brothers Limited http://manji.co.ke/ Construction

Maruti Steel Limited Multiple Hauliers (EA) Limited Construction Transport http://marutisteel.com/ http://www.multiplehauliers.com/ Mayfair Holdings Limited Mzuri Sweets Limited Food and Beverages Food and Beverages McNeel Millers Limited http://www.mzurisweets.co.ke/contact.html Food and Beverages Nails and Steel Products Limited http://www.kenblestgroup.com/ Industrial Manufacturing

Mega Wholesalers Limited Nairobi Flour Mills Limited Consumer Goods Food and Beverages https://megawholesalers.co.ke http://jimbi.co.ke/ Melvin Marsh International Limited Nairobi Plastics Limited Agriculture Industrial Manufacturing https://melvinstea.com/ https://www.nairobiplastics.com/ Menengai Oil Refineries Limited Nairobi West Hospital Limited Food and Beverages Healthcare http://menengai.com/ https://www.nairobiwesthospital.com/ Metal Crowns Limited Naivas Limited Industrial Manufacturing Retail Metro Plastics Kenya Limited https://www.naivas.co.ke/ Industrial Manufacturing Nakuru Equipment Supplies Limited http://www.metroplasticskenyaltd.insideke.com/ Retail Metsec Cables Limited Nampak Kenya Limited Industrial Manufacturing Industrial Manufacturing http://www.metsec.co.ke http://www.nampak.com Midcom Limited National Cement Company Limited Consumer Goods http://midcomafrica.com/ Industrial Manufacturing Milly Grain Millers Limited http://devkigroupke.com/cement/ Food and Beverages NCBA Mini Bakeries Mombasa Limited Financial Services Food and Beverages https://ke.ncbagroup.com/ Mitsumi Computer Garage Limited New Kenya Co-operative Creameries Limited Information Technology Food and Beverages http://www.mitsumidistribution.com/ http://www.newkcc.co.ke/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA | COMPANY DIRECTORY 97

Next Technologies Limited Premier Bag and Cordage Limited Information Technology Industrial Manufacturing http://next.co.ke http://www.premierbag.co.ke

Nila Pharmaceuticals Limited Prime Bank Limited (Kenya) Healthcare Financial Services https://www.nilapharm.com/ Prime Capital Holdings Limited Nixomb Limited Real Estate Oil and Gas Pwani Oil Products Limited Njimia Pharmaceuticals Limited Food and Beverages Healthcare https://pwani.net https://njimiakenya.co.ke/ Quick Mart Limited NK Brothers Limited Retail Construction http://www.quickmart.co.ke http://www.nkbrothers.co.ke/contact.html Rai Group Limited Industrial Manufacturing Oilcom (K) Limited Oil and Gas Rai Plywoods Kenya Limited http://www.oilcomtz.com Construction

Opalnet Limited Ramco Group Retail Media http://opalnet.co.ke/ http://www.ramco-group.com/

Optica Limited Regal Pharmaceuticals Limited Consumer Goods Healthcare http://optica.co.ke http://www.regalpharmaceuticals.com/

Oserian Development Company Limited Regnol Oil Kenya Limited Agriculture Oil and Gas http://oserian.com/ http://www.regnol.com

Osho Chemical Industries Limited Rising Star Commodities Limited Industrial Manufacturing Food and Beverages http://www.oshochem.com/ http://www.risingstar.co.ke/

Ouru Super Stores Limited Riva Petroleum Dealers Limited Oil and Gas Retail http://riva.co.ke https://www.ourusuperstores.com Rolmil Kenya Limited Packaging Industries Limited Industrial Manufacturing Industrial Manufacturing http://pil.co.ke/ Royal Energy Kenya Limited Oil and Gas Paddy (Kenya) Limited Construction Sadolin Paints East Africa Limited Industrial Manufacturing Patrick Ndichu Gitau and Sons Limited Consumer Goods Safepak Limited Industrial Manufacturing Pekay Brothers Limited http://www.safepack.com/ Food and Beverages Sai Pharmaceuticals Limited PJ Dave Flowers Limited Healthcare Agriculture http://saipharm.com/ http://pjdave.com/ Saj Ceramics Limited Platinum Packaging Limited Industrial Manufacturing Industrial Manufacturing https://www.sajceramics.com/ http://ppl.co.ke/ Securex Agencies Kenya Limited Polypipes Limited Services Industrial Manufacturing https://www.securexafrica.com http://polypipes.co.ke/ Shah Timber Limited Polythene Industries Limited Industrial Manufacturing Industrial Manufacturing http://www.shahtimber.co.ke/ http://www.polythene.co.ke/ Shakab Imports Exports Company Limited Pramukh Cash And Carry Limited Food and Beverages Retail https://shakab.co.ke/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 98 COMPANY DIRECTORY| KENYA

CONTACT US AT [email protected] FOR FULL DATASET

Siginon Freight Limited Tai Enterprises Limited Transport Construction http://www.siginon.com http://taienterprises.co.ke/

Sigma Supplies Limited Techpak Industries Limited Agriculture Industrial Manufacturing http://isinyafeeds.co.ke/ https://www.techpakindustries.com/

Silpack Industries Limited Teita Estate Limited Industrial Manufacturing Agriculture http://www.silpack.com/ Tej Steel Limited Simba Africa Rift Energy Limited Industrial Manufacturing Oil and Gas Texplast Industries Limited http://simbaenergy.ca Industrial Manufacturing Simba Corporation Limited http://www.texplast.co.ke/ Financial Services Text Book Centre Limited https://www.simbacorp.com/simba-corporation Consumer Goods Simba Telecom Limited https://textbookcentre.com/ Consumer Goods Thames Electricals Limited Simkan Agencies Limited Retail Consumer Goods http://www.thameselectricals.com/

Southern Engineering Company Limited The Copy Cat Limited Construction Retail http://www.secoafrica.com/ https://www.copycatgroup.com/about-kenya

Spinners and Spinners Limited The Karen Hospital Limited Industrial Manufacturing Healthcare http://www.spinners.co.ke/ http://www.karenhospital.org/

SS Mehta and Sons Limited Thika Coffee Mills Limited Construction Agriculture http://ssm.co.ke/ http://www.thikacoffeemills.com

Steel Makers Limited Tile and Carpet Centre Limited Industrial Manufacturing Retail http://www.steelmakers.com http://www.tileandcarpet.co.ke/

Suera Flowers Limited Timaflor Limited Agriculture Agriculture https://www.timaflor.com/en/ Sukari Industries Limited Agriculture Tononoka Rolling Mills Limited Industrial Manufacturing Summer Africa Limited http://tononokasteels.com/ Healthcare Transafrica Motors Limited Sundries Bargains Nairobi Limited Retail Food and Beverages http://transafricamotors.com/

Sunflag Textile and Knitwear Mills Limited Transchem Pharmaceuticals Limited Industrial Manufacturing Healthcare http://www.sunflag.com/textiles/index.php http://transchempharma.com/

Supaflo Flour Mills Limited Transfreight Logistics Limited Food and Beverages Transport

Superfoam Limited Transport and Lifting Services Limited Consumer Goods Transport https://www.superfoam.co.ke/ http://tnl.co.ke/

Supra Textiles Limited Tri-Clover Industries Kenya Limited Consumer Goods Consumer Goods

Surgipharm Limited Tuffsteel Limited Healthcare Construction http://www.tuffsteel.co.ke/ Sybyl Kenya Limited Information Technology Tulsi Construction Limited http://sybyl.com Construction

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE KENYA / ETHIOPIA | COMPANY DIRECTORY 99

Tumaini Self Service Limited Vegpro Kenya Limited Consumer Goods Agriculture Tuskys Kenya Limited https://www.vegpro-group.com/home.html Retail Victory Constructions Company Limited http://www.tuskys.com/ Construction Twiga Stationers and Printers Limited https://www.victoryafrica.com/contact Industrial Manufacturing http://www.twigastationers.com/ Wananchi Group (Holdings) Limited Media Umoja Rubber Products Limited https://www.zuku.co.ke/ Industrial Manufacturing http://www.umojarubber.co.ke/ Wells Oil Limited Oil and Gas United Aryan Epz Limited Consumer Goods http://wellsoil.com/ http://www.unitedaryan.net/home.html# West Kenya Sugar Company Limited United Millers Limited Agriculture Food and Beverages Whitesands Hotel (Kenya) Limited http://united.co.ke/ Leisure and Tourism Universal Corporation Limited https://www.sarovahotels.com/whitesands- Healthcare mombasa/ http://ucl.co.ke/ Wood Products Limited Uzuri Foods Limited Food and Beverages Construction https://www.woodproductskenya.co.ke/ Van den Berg Kenya Limited Agriculture Yh Wholesalers Limited https://www.bergroses.com/nl/ Food and Beverages

ETHIOPIA Abbahawa Trading PLC Amdehun General Trading PLC Food and Beverages Real Estate http://www.amdehungt.com/ Abyssinia Springs PLC Food and Beverages Anbessa Shoe Share Company http://greatabyssiniaplc.com/ Industrial Manufacturing

Afro-Tsion Construction PLC Anmol Products Ethiopia PLC Construction Industrial Manufacturing http://www.afro-tsion.com/ Asbek Engineering and Commerce PLC Construction Afro-Tsion Real Estate http://asbekplc.com/ Construction https://www.afro-tsion.com/ Aser Construction PLC Construction Ahfa PLC https://aserplc.com/ Food and Beverages http://ahfaplc.com/ ASKU PLC Food and Beverages Akir Construction PLC http://www.ab-ig.com Construction Asmen PLC Al-Sam Corporation Limited Industrial Manufacturing Consumer Goods https://asmenplc.com/ http://alsamgroup.com/ Baheran Trading PLC Alem Steel PLC Agriculture Industrial Manufacturing http://baherantrading.com/ Aleta Land Coffee PLC Bamacon Engineering PLC Food and Beverages Construction https://aletalandcoffee.com/# http://www.bamaconengineering.com/

Alta Computec PLC BEAEKA General Business PLC Information Technology Agriculture https://www.altacomputec.com/ http://www.beaeka.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 100 COMPANY DIRECTORY| ETHIOPIA

CONTACT US AT [email protected] FOR FULL DATASET

Belayneh Kindie Import and Export PLC Equatorial Business Group PLC Agriculture Transport http://www.belaynehkindie.com/ http://www.ebg.com.et/

BELT General Business PLC ETCOF Trading PLC Construction Food and Beverages http://www.beltgeneralbusinessplc.com/ Ethio Ceramics PLC BMET Energy Telecom Industry and Trade PLC Industrial Manufacturing Industrial Manufacturing Ethiopia Tannery SC Limited http://www.bmetenergy.com/ Consumer Goods Bokra Construction and Trading PLC http://www.ethiopiatannery.com.et Construction Euro Cable PLC Boston Partners PLC Industrial Manufacturing Leisure and Tourism http://www.eurocableplc.com/

Bridgetech PLC Gemshu Beyene Construction PLC Agriculture Construction http://www.bridgetechplc.com/ https://gebeconstruction.com/ Burayu Development PLC Get-As International PLC Industrial Manufacturing Consumer Goods http://www.get-asinternational.com Buzalem Kids General Trading PLC Construction Glorious PLC Consumer Goods C & E Brothers Steel Factory PLC Industrial Manufacturing http://glorious-plc.com/ http://candebrothersteel.com/ GMT Industrial PLC Agriculture C.G.F Business Group PLC Agriculture http://gmtindustrialplc.com/ https://www.cgfbg.com/ Great Abyssinia PLC Cabey PLC Food and Beverages Agriculture http://greatabyssiniaplc.com/ http://www.cabeyplc.com/index.php?option=com_ Habesha Steel Mills PLC content&view=featured&Itemid=101 Industrial Manufacturing CGF Crown Cork Factory Hadeed Trading PLC Industrial Manufacturing Construction https://cgfbg.com/index.php http://www.hadeedtrading.com/ Coma Import and Export PLC Hagbes PLC Agriculture Industrial Manufacturing http://comaimportandexport.com/ https://www.hagbes.com/ Cooperative Bank of Oromia S.C Horizon Addis Tyre Share Company Financial Services Industrial Manufacturing http://www.coopbankoromia.com.et/index.php http://www.horizon-atc.com/ Country Trading PLC Industrial Manufacturing K.A.M PLC http://www.countrytradingplc.com/ Construction http://www.kamplc.com/ DH Geda Trade and Industry PLC Industrial Manufacturing Kaki PLC http://dhgeda.com/ Agriculture http://www.kakiplc.com/ East Cement SC Industrial Manufacturing Karuturi Agro Products PLC Agriculture Elmi Olindo Contractors PLC https://www.karuturi.com/ Construction http://www.elmiconstruction.com/ Kemal Abdela International PLC Agriculture Enyi General Business PLC Construction KK PLC http://www.enyirealestate.com/ Industrial Manufacturing http://kkplcethiopia.com/index.php Enyi Real Estate Construction KO.J.J Food Processing Complex PLC http://enyirealestate.com/ Food and Beverages

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE ETHIOPIA | COMPANY DIRECTORY 101

Lanchihun Business PLC Santa Maria Construction PLC Agriculture Construction http://lanchihunbusinessplc.com/ http://www.santamariaconstruction-et.com/

Luna Export Slaughter House PLC Satcon Construction PLC Food and Beverages Real Estate http://www.lunafarmexport.com/index.html Sher Ethiopia PLC Mamo Kacha PLC Agriculture Food and Beverages https://sherethiopie.com/

Marathon Motor Engineering PLC Snap Trading and Industry PLC Transport Industrial Manufacturing http://marathonmotor-hyundai.com/comment.html http://snap-trading.com/

Mekab PLC Sunshine Construction PLC Industrial Manufacturing Construction https://www.mekabplc.com/ https://www.sunshineinvestmentgroup.net/

Metro PLC Sunshine Investment Group Industrial Manufacturing Real Estate http://metroplc.com/ https://www.sunshineinvestmentgroup.net/

Midroc Ethiopia PLC Tamrin International Trading PLC Agriculture Industrial Manufacturing http://www.midroc-ceo.com/?q=ginfo http://www.tamrininternational.com/

Moha Soft Drinks Industry SC Tekleberhan Ambaye Fanta Corporate Group Construction Food and Beverages http://www.tafcorporate.com https://mohasoftdrinksindustry.com/ The Ghions Mohan PLC Agriculture Consumer Goods http://www.ghions.com.et/index.html http://www.highlandershoe.com/ Ture PLC Mullege PLC Industrial Manufacturing Agriculture http://tureplc.com/ http://www.mullege.com/ United Bank Share Company Myseru General Trading PLC Financial Services Industrial Manufacturing http://www.unitedbank.com.et/

Nared General Trading PLC Warka Trading House PLC Healthcare Agriculture https://naredpharma.com/ http://www.warkaplc.com/

NAS Foods PLC Wereta International Business PLC Food and Beverages Consumer Goods http://www.weretaib.com/ Orchid Business Group PLC Construction Wonberta General Import and Export PLC http://www.orchidplc.com/ Food and Beverages http://www.wonberta.com/ Orchid Transit PLC Yencomad Construction PLC Transport Construction http://www.orchidplc.com http://www.yencomad.com/index.html Rama Construction PLC Yesu PLC Real Estate Industrial Manufacturing http://www.ramaconstructionplc.com/ Yhaenu PLC Ries Engineering Share Company Agriculture Transport http://www.yhaenuplc.com/ http://riesethiopia.com/ Yotek Construction Private Limited Company Romina PLC Real Estate Food and Beverages http://www.yotekcon.com/index.php/contact-us http://rominaplc.com/ Zablon Trading PLC S.A. Bagersh PLC Transport Agriculture http://zablontrading.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 102 COMPANY DIRECTORY| UGANDA

CONTACT US AT [email protected] FOR FULL DATASET

UGANDA A.K. Plastics Uganda Limited Exim Bank Uganda Limited Industrial Manufacturing Financial Services https://www.mukwano.com/divisions http://www.eximbank-ug.com/

A.K. Transporters Limited Fifi Transport Limited Transport Transport https://www.mukwano.com/ FOL Logistics (Uganda) Limited Acacia Apartments Limited Transport Real Estate GM Tumpeco Limited AK Oils and Fats (U) Limited Industrial Manufacturing Agriculture http://www.gmtumpeco.co.ug/index.html https://www.mukwano.com/ AK Plastics (U) Limited Goldstar Insurance Company Limited Industrial Manufacturing Financial Services https://goldstarinsurance.com Akright Projects Limited Real Estate Golf Course Hotel Alam Group Limited Leisure and Tourism Industrial Manufacturing http://golfcoursehotel.com https://www.alam-group.com/ Great Lakes Coffee Limited Aya Group Agriculture Food and Beverages http://greatlakescoffee.co.ug/

Bakhresa Grain Milling Uganda Limited Hariss International Limited Food and Beverages Food and Beverages http://bakhresa.com/services/agro-processing-grain- milling/bakhresa-grain-milling-uganda-limited/ https://www.rihamgroup.com/ Basajjabalaba Hides & Skin Limited Hass Oil and Petroleum Food and Beverages Oil and Gas https://hasspetroleum.com Biplous Uganda Limited Consumer Goods Hass Petroleum Uganda Limited http://biplous.com/ Oil and Gas Britam Insurance Uganda Limited http://hasspetroleum.com/beta/uganda-2/ Financial Services Hotel Africana Limited https://www.britam.com/web/uganda Leisure and Tourism Britania Allied Industries Limited http://www.hotelafricana.com/ Food and Beverages http://www.britania.ug/ House of Dawda Food and Beverages Bulaimu Muwanga Kibirige Group Industrial Manufacturing http://www.britania.ug/ Bushenyi Cotton Limited Imperial Group Of Hotels Limited Agriculture Leisure and Tourism https://www.imperialhotels.co.ug/ Cable Corporation Limited Industrial Manufacturing International Hospital Kampala https://www.mehtagroup.com/electric_cables.html Healthcare Cafe Javas Limited http://ihk.img.co.ug/ Food and Beverages International Medical Group https://cafejavas.co.ug/ Healthcare Casements Africa Limited http://img.co.ug/ Industrial Manufacturing http://www.casements.co.ug/ Jesa Farm Dairy Limited Food and Beverages City Oil Uganda Limited Oil and Gas https://jesa.co.ug/ https://www.cityoiluganda.com/ Kabira County Club Desbro Uganda Limited Leisure and Tourism Industrial Manufacturing https://www.kabiracountryclub.com/ https://desbroeastafrica.com/ Kakira Sugar Works Limited East African Packaging Solutions Limited Agriculture Industrial Manufacturing http://www.kakirasugar.com/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE UGANDA / TANZANIA | COMPANY DIRECTORY 103

Kampala International University Roofings Limited Education Industrial Manufacturing http://www.roofingsgroup.com/ Liberty Life Assurance Uganda Limited Financial Services Ruparelia Group of Companies https://www.liberty.co.ug/Default.aspx Financial Services https://www.rupareliagroup.com/ Madhvani Group Of Companies Agriculture Rwenzori Commodities Limited http://www.kakirasugar.com/content/madhvani-group Food and Beverages Meera Investments Limited http://www.mukwanotea.com/ Real Estate Shumuk Group of Companies https://www.rupareliagroup.com/meera-investments Agriculture Mehta Group http://www.shumukgroup.com/ Financial Services Shumuk Investments Limited https://www.mehtagroup.com/ Industrial Manufacturing Mukwano Group of Companies http://www.shumukgroup.net/investments.htm Industrial Manufacturing Simba Telecoms Limited https://www.mukwano.com/ Telecommunications Mukwano Industries Limited https://simbatelecom.com Consumer Goods Spear Group https://www.mukwano.com/ Media Mukwano Personal Care Products Limited http://spearmotors.co.ug/ Consumer Goods https://www.mukwano.com/brands Spear Motors Limited Mulwana Group of Companies Limited Transport Food and Beverages http://spearmotors.co.ug/ https://jesa.co.ug/ Steel Rolling Mills Limited Munyonyo Commonwealth Resort Limited Industrial Manufacturing Leisure and Tourism Sugar and Allied Industries Limited https://www.munyonyocommonwealth.com/ Food and Beverages Nice House of Plastics Limited http://www.sail.co.ug Industrial Manufacturing http://nice.co.ug/ Sugar Corporation of Uganda Limited Agriculture Ntake Group https://www.mehtagroup.com/sugar.html Food and Beverages http://www.ntakegroup.co.ug/ Tirupati Group Limited Construction Oxygas Limited Healthcare Tirupati Investments Uganda Limited https://www.alam-group.com/ Real Estate

Premier Roses Limited Translink Uganda Limited Agriculture Consumer Goods https://www.premier-roses.com/ http://www.translink.co.ug/

Roofclad Limited Uganda Batteries Limited Industrial Manufacturing Industrial Manufacturing http://www.roofclad.co.ug/ https://www.ublbatteries.ug/

TANZANIA Abood Group Amir Hamza (Tanzania) Limited Transport Agriculture http://www.aboodgroup.com/ http://amimza.com/ Advent Construction Limited Asas Group Limited Construction Agriculture http://www.adventconstructions.co.tz/ http://asasgrouptz.com/new/contact-us/ Alistair Group Industrial Manufacturing Asher Industries Limited https://www.alistairgroup.com/ Consumer Goods

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE 104 COMPANY DIRECTORY| MARKET LANDSCAPE

CONTACT US AT [email protected] FOR FULL DATASET

Bahari Bounty Group Mansoor Industries Limited Agriculture Consumer Goods http://www.baharibounty.com Mohammed Enterprises Tanzania Limited Bakhresa Group Limited Agriculture Food and Beverages http://www.metl.net/ http://bakhresa.com Motisun Group Limited Demeter Group Construction Mining and Metals https://motisungroup.com

Export Trading Company Limited Murzah Oil Mills Limited Agriculture Agriculture http://www.etgworld.com/contact.php http://murzah.co.tz/

Fabec Investment Limited Oilcom Tanzania Construction Oil and Gas http://www.fabec.co.tz/ http://www.oilcomtz.com/

Highland Estates Limited Red Dot Distribution Limited Construction Information Technology http://www.estates.co.tz/ https://www.reddotdistribution.com/

Jamana Printers Limited Sunflag Tanzania Limited Services Industrial Manufacturing http://www.jamanaprinters.com/ https://www.sunflag-tz.com/

Lodhia Group of Companies Sunshine Group Limited Industrial Manufacturing Transport http://www.lodhiagroup.com/ http://sunshinegroupltd.co.tz/

RWANDA Ameki Colour Limited Merez Petroleum Limited Industrial Manufacturing Oil and Gas http://www.amekicolor.com/ http://www.merezpetroleum.com/

Bakhresa Grain Milling Rwanda Limited Speranza Group Limited Food and Beverages Food and Beverages http://speranzarwanda.com/ Caferwa Limited Agriculture Star Construction and Consultancy Limited Construction https://www.caferwa.com/ http://www.starconstruction.rw/ Ese Urwibutso/Sina Rwanda Sulfo Rwanda Industries Limited Agriculture Consumer Goods https://sinarwanda.com/ http://www.sulfo.com/ Fair Construction Limited Tolirwa Limited Construction Industrial Manufacturing http://www.fairconstructionrw.com/ http://www.tolirwa.com

Karongi Tea Factory Limited Trust Engineering Solutions Limited Agriculture Telecommunications https://www.karongitea.com/ http://tres.rw/13013-2/

EAST AFRICA’S FAMILY-OWNED BUSINESS LANDSCAPE