African firms prove an inspiration

That firm was African Explosives & Industries, a company that made blasting explosives and detonators for the gold and diamond mining industries in South Africa. It’s still on our markets today, though listed under the moniker AECI.Many more companies have since made the journey to London, with over 100 African firms listed or trading in the UK capital, more than on any other international exchange. In the last 10 years alone, African companies have raised $26bn in London in new and further issues, highlighting the UK’s role as a global hub for investment and fund raising.On Friday, we celebrated our latest effort to foster economic development in Africa: the launch of the first ever edition of Companies To Inspire Africa, a landmark report identifying hundreds of the continent’s fastest-growing private companies. Hailing from 43 countries across Africa, each inspiring business has a unique story to tell, and the diversity of the collection is a clear reflection of the vibrancy of Africa itself.The report serves as a reminder of how these dynamic businesses are becoming corporate champions: propelling African economies to growth by increasing employment and developing a skilled workforce. It also shows how international collaboration can foster innovation and success.African companies looking to London have traditionally come from the natural resources sector - oil and gas, mining and precious metals. But the range of sectors is now broadening as the economies of the continent mature and millions more consumers enter its rapidly expanding middle class. This trend is corroborated by the sheer variety and number of high growth companies in the report. They come from all corners of Africa and across seven sectors: from healthcare, to technology & telecoms, to consumer services.The report is also an example of the work underway to foster an efficient financial infrastructure serving companies across Africa. This is the best way to accelerate economic growth and create the jobs and prosperity that can be reinvested into other areas of the African economy, and across the world. Developing a vibrant community of high growth small and medium sized business is a vital part of these efforts.LSEG is already playing an active role in this, by championing a tailored version of our successful business support and capital raising programme, ELITE, in Morocco, in partnership with Casablanca Stock Exchange. The ELITE ecosystem which extends across the UK and Europe supports the most ambitious companies prepare and structure for the next stage of growth through access to long term financing opportunities. The opportunity is huge. Small and medium sized enterprises account for the vast majority of businesses in Morocco: they are key to the future growth of the economy.Friday’s event also saw London Stock Exchange Group play host to the latest meeting of the Africa Advisory Group. This bi-annual forum brings together high profile business leaders, policymakers and investors from across Africa to discuss the development of Africa’s capital markets and how best to address the challenges and opportunities this presents. The aim of the group is to deliver policy recommendations to influence the progress of Africa’s capital markets. It’s another example of partnering and combining expertise to bring about positive change and real progress.Africa’s and London’s stories may be more closely linked than meets the eye: it’s clear that in Africa, just as in Britain, small businesses are the lifeblood of the national economies. They play an essential role in developing skills, jobs, wealth and ultimately driving economic growth.That’s why it’s essential to continue to nurture these ties and to further develop an effective financial markets infrastructure to boost economy and spearhead growth. It’s a target which LSEG is firmly committed to.