A 2018 report by the African Development Bank Group (AfDB) said the African agribusiness sector is projected to hit a $1 trillion valuation come 2030. Now, that’s a lot of money. And what this means, in essence, is that the sector is well on its way to becoming the “new oil”, even as key industry players are poised to cash out big time. But this is not to say that they are not already cashing out. As a matter of fact, the African agribusiness sector is currently worth billions of dollars. Some of the biggest companies on the continent currently play in this sector.
Around the world, agribusiness has always been a cash-cow; literally. And this is mainly due to humans’ ever present need for food, as well as the constant quest for raw materials and finished products. Some astute businessmen and women dedicate all of their time and resources towards harnessing the potentials inherent in agriculture and the entire agriculture value chain. It is, therefore, unsurprising that in return, they make a lot of money.
Keeping that in mind, this article examines the key players in the African agribusiness sector. We shall be looking at when they were established, what they specialize in, their leadership, and valuation. The companies are named in no particular order.
Dangote Sugar Refinery Plc: This Nigerian company, which is majority-owned by Africa’s richest man Aliko Dangote, is arguably one of the biggest sugar producers on the continent. The company was established in 2005 and fully engages in the entire value chain of sugar production, from plantation to refining and packaging. The Dangote sugar brand is widely sold in Nigeria and other African markets.
According to information obtained from the Wall Street Journal’s Market Data, Dangote Sugar Refinery Plc has a market capitalization of N204.67 billion. The company’s total assets currently stand at N278 billion according to Bloomberg. Ravindra Singhvi serves as the Chief Executive Officer.
Nestle Nigeria Plc: This company is a subsidiary of Nestle S.A, the multinational Swiss food manufacturer. It is one of the most dominant and profitable consumer goods makers in Nigeria, with varied product offerings ranging from cereals to beverages and food seasoning.
The company has been operating in Nigeria since September 25, 1969, is headed by Wassim Elhusseini who serves as CEO. The consumer goods maker was listed on the Nigerian Stock Exchange in April 1979. Its market capitalisation is over N1 trillion while its current total assets stand at N246.1 billion, according to Bloomberg.
EDITOR’S NOTE: Continue on page 64 of our 20 Trending and most Profitable Businesses in 2021 edition. Click here to read it.