Growth of African agribusinesses cannot be modelled around business strategies utilised by firms in first world countries (FWC). Economic policing characteristics such as interest rates, liquidity, agribusiness subsidies, rules and regulations surrounding the manufacturing, production, processing, export and import of agricultural products and services differ.
Despite the odds and different challenging economic environments in Africa, success has been achieved for agribusinesses.
According to AsokoInsight (2022) there are 14 African agribusinesses with an annual revenue of over USD10 billion. These are Cevital, Nigerian Breweries, FMN, BUA Group, Distell, Astral, Bidcorp, Tongaat-Hulett, Omnia, Pioneer Foods, Tiger Brands, TSB, PCL, and an Ethiopian company.
For this article’s sake we shall look at companies from different countries and sectors, namely Cevital, Nigerian Breweries, Omnia, Pioneer Foods, and Tiger Brands.
Cevital is a family-run group whose operations began in 1971 in the metal construction business. It is the first private Algerian company to have invested in a wide variety of business sectors and has passed significant historical milestones to achieve the size and recognition it enjoys today.
They are involved in the food-processing and mass distribution industry, electronics and domestic appliances, the iron and steel industry, the flat glass industry, industrial construction, the automobile industry, services, and the media. As these investments have been made, the Cevital Group has focused on the key principle of creating an economic unit.
With the support of its 18 000 employees located on three continents, it is the flagship of the Algerian economy, working continuously to create jobs and wealth. Cevital has the largest sugar refinery globally, with an annual production capacity of two million tonnes, and the biggest oil refinery in Africa, which produces 570 000 tonnes per year. Forbes Middle East (2021) states that its 26 subsidiaries generated USD4 billion in revenue in one year.
Nigerian Breweries Plc
Nigerian Breweries began operation in 1949 with the introduction of Star Lager Beer. Since then, they have expanded their Lager portfolio to produce a wider range of Non-Alcoholic, Stout and Spirit Drinks comprised of over 21 brands enjoyed locally and globally.
According to African Financials, the company boasts one of the most modern brew houses in Nigeria. Nigerian Breweries has 11 breweries, two malting plants and 26 sales depots; enjoys a growing export market; and offers sales and logistic and marketing support to merchants and vendors. Brands in the product portfolio are available in 13 countries including the United Kingdom, South Africa, the United States, and various countries in Middle East and West Company. Its company head office is in Lagos, Nigeria. Nigerian Breweries Plc recorded USD961,83 million revenue in the 2021 financial year.
Based in Johannesburg, South Africa, with operations in 25 countries, Omnia has more than six decades’ experience in the business. Additionally, Omnia continues to grow its global footprint, with businesses in Australasia and Brazil, and clients in other regions such as North America and Canada.
Omnia provides customised, knowledge based, innovative solutions through its Agriculture, Mining and Chemicals divisions. These divisions include Omnia Nutriology, Axioteq™, BME, Protea Mining Chemicals and Protea Chemicals.
Operations began in 1953 as a family business with only £53 in capital. Today Omnia has grown to a market capitalisation of ±R12 billion.
Pioneer Foods is one of the largest South African producers and distributors of a range of branded food and beverage products. The group operates mainly across South Africa, providing wholesale, retail, and informal trade customers with products of a consistently high standard. Pioneer Foods exports to more than 80 countries across the globe. The growing international business represents 21% of operating profit.
The company was formed in 1997 and is built on the foundation laid by two pioneering farming co-operatives, namely Bokomo and Sasko, and this journey began nearly 100 years ago.
Africa is a core focus for the Tiger Brands International team, driving growth across 25 countries with five priority markets: Cameroon, Mozambique, Zambia, Zimbabwe, and Nigeria. Companies Market Cap states that, according to Tiger Brands’s latest financial reports, the company’s current revenue (TTM) is $2,04 billion.
Revenue for Tiger Brands (TBS.JO). Available at: https://companiesmarketcap.com/tiger-brands/revenue/#:~:text=Revenue%20in%202021%3A%20%242.04%20B,that%20were%20of%20%241.76%20B
African top 20 Agribusiness Companies. Available at: https://www.howwemadeitinafrica.com/rankedafricas-top-20-agribusiness-companies/13532/
AsokoInsight. Africa’s Largest Agribusiness Companies. Available at: https://www.asokoinsight.com/content/market-insights/africa-slargest-agribusiness-companies
Forbes Middle East. (2021) Available at: https://www.forbesmiddleeast.com/lists/top-100-arab-familybusinesses-in-the-middle-east-2021/cevital-group/
Nigerian Breweries PLC. Available at: https://www.nbplc.com/ourhistory/
African Financials. Available at: https://africanfinancials.com/company/ng-nb/
Pioneer Foods. Available at: https://pioneerfoods.co.za/
Tiger Brands. Available at: https://www.tigerbrands.com/
Omnia Holdings Limited. Available at: https://www.omnia.co.za/
Cevital. Available at: https://www.cevital.com/en/