Cross-border listings on African Stock Exchanges; How are we doing?

Dear Africa Interested Individuals:

                                                        Happy Hump Day!  Let us get to it.  As African countries seek more listings on their respective stock exchanges, I decided to look at developments and strategies deployed to achieve more listings.  

First Rand Bank is the third largest bank in South Africa and has listed subsidiaries in Namibia and Botswana.  First Rand Bank has contributed to the increased listing of companies on African Stock Exchanges.  Rand Merchant Bank has been operating in Nigeria for over four years.  Will they ever list?  

Barclays Africa (Absa) is the second largest bank in South Africa and has listed subsidiaries in Botswana and Kenya.  Barclays Africa has applied for a merchant banking license from the Central Bank of Nigeria.  

Illovo Sugar South Africa owns Zambia Sugar Company (ZSC) and ZSC is listed on the Lusaka Stock Exchange and the Johannesburg Stock Exchange.  

 

Societe Generale is a popular bank in France and one of the largest banks in Cote D' Ivoire; the bank is listed on the BRVM based in Abidjan.  France colonized Cote D' Ivoire.  Societe Generale is also listed on the Ghana Stock Exchange and sold its operations in Egypt to Commercial International Bank, Egypt.  Cote D' Ivoire is to the francophone speaking region of Africa what Nigeria is to the anglophone speaking region of Africa.   

Britain colonized Nigeria.  Standard Chartered Bank (SCB) is a British bank (does not do retail operations in Britain.)  Standard Chartered Bank has thus far refused to list on the Nigerian Stock Exchange despite the close historical and business ties between the home countries and Nigeria being the largest economy and most populous nation in Africa.  SCB is listed on smaller stock exchanges in Kenya, Ghana and Botswana.  All three countries gained their independence from Britain.  This is equivalent to Societe Generale not being listed on the BRVM; they are listed.

Tullow Oil (Irish company) discovered oil in Ghana in 2007 and started pumping oil from the Jubilee oil field in December 2010.  Six months later Tullow Oil listed on the Ghana Stock Exchange.  I hereby quote Ian Springett "Tullow wants to be in Ghana very much for the long term.  I think a listing on the Ghana Stock Exchange is an excellent way to demonstrate that commitment and it really gives Ghanaians an opportunity to invest in our company and share in our future."       

MTN Group (a South African company) has been in Nigeria for about fifteen (15) years and has still not listed on the Nigerian Stock Exchange.  Remember how other South African companies are listing on other African stock exchanges.  I do believe that MTN wants to be in Nigeria for the long term.  Given antecedents, I do not think they are excited to let Nigerians share in the company's future.  Even if MTN list tomorrow in Nigeria, nothig will change the fact that it took them fifteen years to do what Tullow Oil did in less than a year after commencing operations.  Are Africans really their brother's keeper?  More than 35% of MTN's EBITDA comes from Nigeria alone. 

Shoprite has its main listing on the JSE and secondary listings on the Namibian and Lusaka Stock Exchanges.  Nigeria is the in market for Shoprite as it expands across the African continent and has been in Nigeria for about eight years.  Will Shoprite list on the Nigeria Stock Exchange and allow Nigerians share in its growth across the country?  

Attijariwafa Bank Morocco listed its Tunisian subsidiary (Attijari Bank)on the Tunis Stock Exchange.  Qatar National Bank listed its Egyptian subsidiary on the Egyptian Exchange; this is another knock for SCB not listing its Nigerian subsidiary on the local stock exchange.  

Kenyan companies have done the best across Africa in increasing cross-border listings on the continent.  Uchumi supermarket is listed on the Nairobi, Dar Es Salaam, Rwanda and Uganda Securities Exchange.  Kenya Commercial Bank has listed in Tanzania, Rwanda and Uganda and its base of Kenya.  East African Breweries (Diageo) is listed in Kenya, Tanzania and Uganda.  Diageo is also listed on the Nigeria and Ghana Stock Exchanges.  Diageo has done very well in boosting listings across African stock exchanges.  

Kenya Airways is listed in Kenya, Tanzania and Uganda.  Jubilee Holdings (financial conglomerate mainly into Insurance) has listed in Kenya, Tanzania and Uganda.  Equity Bank Group has listed in Kenya, Tanzania, Uganda and Rwanda.  Centum Investments is listed in Kenya and Uganda.  Nation Media is in Rwanda, Uganda, Kenya and Tanzania.  Umeme is listed in Kenya and Uganda.  

Oando (a Nigerian energy solutions provider) has a cross-border listing on the Johannesburg Stock Exchange which took place in November 2005.  

No Nigerian Bank has listed on any other African stock exchange other than Nigeria.  They all jostled for listing of GDRs on the alternative and main market of the London Stock Exchange while ignoring listings in the continent where they do business.  Nigerian banks need to show commitment to Africa.  Stanbic Bank Uganda (Ugandan subsidiary of Standard Bank Group) is listed on the Uganda Securities Exchange and is the largest bank by assets in Uganda.  Cross-border listings in Africa help companies build up continent-wide visibility and an African business dynasty.  

Africans will tell others around the globe about African companies and the foreign investors will come in before they are even formally invited to make money.  Companies running to list on the LSE while hoping to drive business across the continent, have gotten it all wrong in my opinion.  They have put the cart before the horse.  Push inward and then spring outward and let the reverberations resound.  Kenya and South Africa are getting it right while Nigeria (maybe companies in Nigeria think they have conquered Africa; excuse me?) keeps seeking foreign attention and approval.  This is why Nigerians avoid locally made products and go for foreign made products even if substandard. I guess Africa is now also considered local by Nigerians.  British American Tobacco is listed on the Nairobi and Uganda Securities Exchanges.  This British company is also operating in Nigeria and is not listed; same thing for Standard Chartered Bank.  Meanwhile, Nigerian banks fall over themselves to list GDRs on the LSE in this one-sided listing relationship.  Shaking my head in disbelief.  A departed African musical icon Fela once sang about Colonial Mentality.  It still lives on... 

Southern and Eastern Africa companies, Ecobank (ETI) and Diageo are doing well in growing listings across African Stock/Securities Exchanges.  ETI needs to list on the Nairobi Stock Exchange.  North Africa is in the middle while West Africa is lagging behind with Nigeria taking the brunt of rejection (from fellow African and foreign companies) while also doing little to espouse cross-border listings across African Stock Exchanges by its banks.  Remember, charity begins at home at the country and continental level.  Till next time... 

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