Expert commentary by Christian Chammas, CEO, Vivo Energy
Africa is one of the world’s fastest-growing regions, whether measured by GDP growth, population and urbanisation growth, or in terms of rising income levels and an increasing middle class.
These trends lead to a growing need for commercial transport, personal mobility, infrastructure development and power generation to drive industrial growth – underpinning demand for the retail and commercial fuels that we provide across the African continent.
Urbanisation and higher income also drive change in consumer habits and lifestyles, with city dwellers increasingly valuing convenience and quick service while shopping.
Since our launch in 2011, we have invested in all our markets across Africa to grow the business, adding hundreds of new service stations and convenience retail outlets, continuing to deliver improved results, year on year.
None of this would have been possible without the dedication of our local teams in Africa – not just the 2,350 direct Vivo Energy employees, but the tens of thousands of other partners, including our dealers, retail staff, transporters and contractors. Our success is built on these people, who deliver world-class standards across our operations, every day, working to achieve our vision of becoming Africa’s most respected energy business.
Today, with over 1,800 Shell-branded service stations in 15 countries across the continent, we like to say that we are at the heart of the African growth story, helping to fuel Africa’s future.
Vivo Energy’s initial public offering in May 2018 was a major milestone in our business and was the largest entry to London Stock Exchange by an African-focused company (by money raised) in over a decade.
Additionally, we made a secondary inward listing on the Main Board of the Johannesburg Stock Exchange. These are premium listings on what are seen as premium stock exchanges.
Bringing Vivo Energy to the public markets has diversified our shareholder base and enhanced our profile with customers and broader stakeholders. Beyond that, it has also enabled us to further grow the business and strengthen our market-leading position across Africa.
Our unconditional entry into eight new markets in March 2019, following completion of a transaction with Engen, will give us a footprint in additional high-growth Sub-Saharan markets and make us the largest pan-African independent fuel retail network by a wide margin. It will give us access to around 150 million new consumers, taking us from around 23% to over 35% of the African population.
We are excited about the future of Africa and we are excited about the future of Vivo Energy.