Monday, 20 July 2015

Sales growth in DRC companies

The DRC economy has been growing at an annual rate of seven percent in the last few years, so a similar growth may be expected in the total sales of DRC companies.  For individual companies, the rate will vary substantially as they differ in their ability to capture part of the national growth.

The graph shows the distribution of annual growth rates for DRC companies who stayed in operation over the period 2009-2012.  I have used an inflation rate of 11.6 percent to adjust the annual growth rates, which was calculated from a World Bank source.  I have also omitted the few companies who say that their growth rate exceeded 200 percent.


The companies can be split by their rate of annual growth:
  • 55 percent of companies had flat or declining growth.
  • 23 percent of companies had moderate growth rates of between zero and ten percent per year.
  • 6 percent of companies had good annual growth rates of between ten and 20 percent.
  • 16 percent of companies were growth champions, with an annual growth exceeding 20 percent.
Life has been tough for the majority of companies, but some companies have done very well from the DRC's national growth.  For companies as a whole, their sales rose by 12.7 percent.

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