CAPITAL: Analysts say Safaricom is poised to make it to the list of top five biggest companies in Africa by market capitalisation if the latest stock market rally holds.

Data from the Emerging Markets Investment Management Limited in a survey titled Africa Business which is a top 250 survey shows that Safaricom moved up one position to 9th place by March 2021.

 The report released earlier this last covering 12 months to March 2021 shows that safaricom had a market capitalisation of over Sh1.3 trillion by the month of March this year. This means it’s ranking could rise further if the current market rally holds.

 “Dynamic telco Safaricom, a world pioneer and still a leader for mobile money, is the top East African firm on the list, edging up from 10 to nine in the continental ranking, with a strong climb in market capitalisation to $13.3 billion,” said Tom Minney, Project Manager, African Exchanges Linkage Project (AELP) at African Securities Exchanges Association.

In a strong year for the Nairobi Securities Exchange All Share Index, he said Kenyan firms occupy 12 places in their annual ranking of East Africa’s top 20 companies. Head of Research at AIB Capital Sarah Wanga says that Safaricom will correct but not by a huge margin.

“The correction will be marginal we should Safaricom rise up the ranks on positive sentiment from Ethiopia business,” said Wanga, adding that the telco could likely maintain its dividend payout.

Platinum Holdings

 Standard Bank (South Africa) valued at $13,760 million and Maroc Telkom valued at $13,517 million (Morocco), Impala Platinum Holdings at $14,725 million (South Africa) are some of the companies Safaricom could overtake before settings its sights on Vodacom Group in South Africa at $15,698 million

 Other leading Kenyan companies are competitive local banks Equity Group and KCB, vying with each other at 92 and 98 in the main ranking, and expanding to snap up opportunities in central Africa and other regions.

 Analysts at Kestrel Capital add that the investors may take profit on banks, adding that banks may lend less next year on election anxiety.