Finance

Africa’s top 10 listed businesses post a negative net debt of $29.1bln (Capital IQ)

Tuesday, 02 March 2021 11:39
Africa’s top 10 listed businesses post a negative net debt of $29.1bln (Capital IQ)

(Ecofin Agency) - Africa’s top 10 listed companies have achieved a negative net debt of $29.1 billion, data reported by Capital IQ showed. The net debt is the total of all long-term and short-term debts of the targeted companies, minus the available and potential liquidity (investments in securities) in each of them.

Per financial rules, when net debt is negative, it is good news. This means that the company has more liquid assets than liabilities to be repaid. This strong financial position for the ten largest capitalizations in Africa is supported by Standard Bank based in South Africa, whose first shareholder with a 20.4% stake is the Industrial and Commercial Bank of China, 71% controlled by the Chinese state.

Standard Bank’s cash position shows a surplus of $19.3 billion on its debt, making it the most liquid company in the top 10 African listed companies. South Africa-based FirstRand follows with a cash position exceeding its $5.4 billion debt. Naspers Limited, the continent's largest market capitalization, has $4.5 billion more cash than its overall debt.

The large African capitalizations in the telecommunications sector performed less well than the others. Kenya-based Safaricom, which is the most valued telecommunications group in African financial markets, has a debt of $322.5 million higher than its financial assets.

Moroccan Itissalat al-Maghrib, aka Maroc Telecom, posted the highest debt level compared to its cash position among the companies analyzed. The company has a positive net debt of $1.9 billion, ahead of Vodacom with a positive net debt of $1.7 billion.

It should be noted that while these indicators are analyzed over 12 months, they must have already changed for some of the companies. The period taken into account is either that ending either at the end of June 2020 or at the end of September 2020.

Investors who are sensitive to performances such as growth in net income should pay more attention to mining companies. Their net profits have increased significantly, driven by increases in the prices of the materials they produce and sell.

Idriss Linge



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.