Benchmarking key strategy consulting firms … key strategy consulting firms footprint in Africa ......

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Benchmarking key strategy consulting firms footprint in Africa

2nd Edition

2016

1

Context and Scope

In order to map the main consulting firms’ footprint in Africa, a benchmark of the six largest

management consulting firms has been conducted:

• McKinsey & Company

• Bain & Company

• The Boston Consulting Group

• A.T. Kearney

• Roland Berger Strategy Consultants

• Strategy& (formerly Booz & Company)

It is worth noting that while Oliver Wyman has a presence in the Middle East, the firm has none in Africa.

Our research covered all types of functions and roles including:

• Partners,

• Consultants

• Research, Knowledge & Analytics

• Support/ Internal Services

• Other (advisors, etc.)

Our research was focused on all African countries with activity by our targeted management

consulting firms, this resulted in a zoom on: Angola, Egypt, Ethiopia, Kenya, Morocco, Nigeria and South

Africa.

2

Methodology Note

This analysis was conducted using only publicly available information, from sources like company

websites, the press or Linkedin

• The data contains errors due to methodological constraints (For example, consultants figures are

derived from LinkedIn whereas we know that not all consultants have active profiles on LinkedIn),

but we chose not to manually correct the data to have a consistent approach between all firms.

• Resources at outsourcing partners and fly-ins are not accounted for in this analysis.

• This analysis does not account for any partners having a foot in Africa and a foot in Europe or the

Middle East.

Some analyses are based on judgment calls, like assigning employees to groups (like consultants vs

Research, Knowledge & Analysis professionals) or assessing the nationality of employees based on

their names and their education history.

As for any judgment, there is a risk of error on a case by case approach but we are quite confident

that the overall picture that is given in this analysis is consistent.

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Key Findings

4

Key Findings – 1/2 - Countries

A strong growth of consulting staff in Africa (+39%YoY), with Kenya leading the way with the highest % increase in number of employees

• The absolute number of employees grew from 545 to 755 in Africa showing a 39% growth

• South Africa showed the highest growth in absolute terms with an increase of 102 employees from 2015

• McKinsey has grown their number employees in Kenya significantly from 2015 to 2016 from 10 to 40 employees. Making Kenya the highest growth region showing 300% growth,

• Egypt and Angola showed the second and third highest growth at 84% (25 to 46) and 58% (12 to 19) respectively

• The remaining countries all showed growth in number of employees above 25%

1

New offices have opened, mostly in Nigeria – Egypt seems to also gain some traction

• Bain & Company and BCG officially opened up in Nigeria in 2015.

• Bain has an unofficial office in Egypt with a small presence of 5 consultants

2

South Africa remains the hottest hub in Africa for four out of six firms with 67% of all staff

• Except for Roland Berger and Strategy&, the other four firms have allocated more than 60% of their human resources in South Africa

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5

Key Findings – 2/2 - Companies

McKinsey is still leading the way in the African market: in terms of total number of employees, variety of groups’ functions covered (Research, Knowledge& analysis) and geographical footprint

• McKinsey stands out from the rest of the consulting firms with actual presence in 7 African countries and a total number of 420 employees, of which 267 are consultants and partners

• Bain & Company comes second in terms of number of employees (145 in total in South Africa and Nigeria, with an unofficial presence in Egypt)

• BCG comes third and showed the largest employee growth in % in Africa (80 employees in 2015 to 113 employees in 2016 across 3 countries)

• A.T. Kearney, Roland Berger and Strategy& have the absolute lowest number of employees covering Africa. They are however growing their staff on the ground

4

McK showed the largest increase in absolute number of employees within the region ; While ATK has the highest % growth

• McKinsey increased their employees in by 107, followed by Bain with 40 and BCG with 33 respectively within the region

• ATK showed the highest growth at a 106% (18 to 37), followed by Strategy& and BCG showing growth of 75% (16 to 28) and 41% (80 to 113)

• Only Roland Berger showed a decrease in number of employees by 1 in 2016 (13 to 12

• The remaining firms all showed growth in number of employees above 34%

5

McKinsey has 70% of the total research staff in the region thanks to more than doubling its staff ; While BCG and McK have the best R&K to consultant ratios (1 for 10)

• BCG & McKinsey have an average ratio of 1:10 while Bain & Company has the lowest ratio of 1:122

• Strategy& has since 2015 invested in research, Knowledge & Analysis and have 3 dedicated staff located in Egypt – Although they serve the Middle East

• A.T. Kearney and Roland Berger have no professionals dedicated to the Research, Knowledge & Analysis in Africa

• It is worth noting that for firms who have local teams, or the ones who don’t, Research, Knowledge and Analysis needs are supported from research teams out of Europe, Middle East or with Infomineo as a local provider

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6

Detailed analysis

7

Key Findings: Zoom on McKinsey in Africa

McKinsey has the longest history of presence in Africa: Opened its South African office in 1995, a decade before Strategy& launched its

first African office and 15 years before BCG’s set up its first office in Casablanca.

McKinsey bets on emerging African markets: currently, it is the only consulting firm with offices in Ethiopia and Kenya.

As for the total number of employees, McKinsey has a current footprint approximately 3 times bigger than Bain, 4 times bigger than BCG

and 20 times bigger than Roland Berger and Strategy&.

McKinsey share its project experience in some African offices:

• Johannesburg:

• 2015: 800+ projects, 600 more across Africa, since 1995

• 2016: 1000+ projects, 1400 more across Africa, since 1995

• Lagos: 120 projects, since 2002

• Luanda: 52 projects, since 2007

• Cairo: 750+ projects, since 2010 – Caro office closed after then revolution

McKinsey’s client work is underpinned by major knowledge investment and intellectual property showing that the continent is

among the firm’s top strategic priorities:

• The Africa Consumer Insight Centre

• Large number of publications covering and analysing new trends in Africa – Lions on the move, Country reports, McKinsey

quarterly articles and MGI on Nigeria and South Africa

McKinsey is heavily recruiting young African talents through its Leadership Fellowship Program – only Bain has a smaller but

similar type program.

McKinsey alone has 70% of the total R,K&A staff in the whole African region.

Sources: McKinsey website, Press Search, LinkedIn

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An overview of total employees & consultants staff across the six key consulting firms in Africa

Sources: LinkedIn

Total StaffMcKinsey & Company Bain & Company

The Boston

Consulting GroupA.T. Kearney Strategy& Roland Berger Total

Growth rate 15/16 34% 38% 41% 106% 75% -8% 39%

Absolute 2016 420 145 113 37 28 12 755

Share of absolute 2016 56% 19% 15% 5% 4% 2% 100%

Consulting staffMcKinsey & Company Bain & Company

The Boston

Consulting GroupA.T. Kearney Strategy& Roland Berger Total

Growth rate 15/16 27% 40% 35% 88% 55% -8% 33%

Absolute 2016 267 120 77 32 17 11 524

Share of absolute 2016 51% 23% 15% 6% 3% 2% 100%

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An overview of total employees across functions in the six key consulting firms in Africa

Sources: LinkedIn

All employees numbers and data presented are best

estimates based on the search conducted on LinkedIn

Figures do not include fly ins which could make a

significant share of billings, esp. for new offices

23%

47%

6%

24%

3%

63%

8%

75

11%

Other

33

3%

38

20%

3%

18%

4%

71%

3%

60%

49%

160

91%

19%

1%

4% 4%

18%

Research, Knowledge & AnalyticsSupport/ Internal Services

14%

Consultants

76

14%

Project Managers

3%

3%

11%

373

1%

Partners

2%

Bain Roland BergerStrategy&ATKBCGMcKinsey

10

South Africa is the hottest hub in Africa with four out of six firms representing 62% of all staff, Morocco is second with 13%

Sources: LinkedIn

5%

6%8%

9%

14%

13%

67%62%

3%

5%

2016

2%

755

1%

2015

545

1%2%

46

7077

101

367

469

8 19

40

46

2510

2015

12

+39%

2016

755

10

545

South Africa Egypt Angola EthiopiaMorocco KenyaNigeria

30

102

2424

21

545

102

24242130

7

South

Africa

MoroccoNigeria

7

Angola

2

Egypt Total

employees

2016

Kenya EthiopiaTotal

employees

2015

755

545

2

11

An overview of total employees across geographic locations in the six key consulting firms in Africa

Sources: LinkedIn

All employees numbers and data presented are best

estimates based on the search conducted on LinkedIn



51%

40

63%

19 10

South Africa

12%

EgyptMorocco Ethiopia

101469 73

73%

AngolaNigeria

52%

Kenya

46

28%

61%

12%

37%

37%

11%

28%

11%

4%

12%

8%

Roland BergerBain BCGMcKinsey Strategy&ATK

12

McKinsey & BCG lead the way with the largest dedicated African research functions

Sources: LinkedIn

It is worth noting that Research, Knowledge and Analysis needs in Africa are currently partially or totally covered by the European

offices of the respective firms.

3

7

4

11

27

12

BCG 2016BCG 2015 Strategy&

2015

McKinsey

2016

McKinsey

2015

Bain 2016 Roland

Berger

2016

Roland

Berger

2015

ATK 2016ATK 2015Bain 2015

0%

+75%

+125%

Strategy&

2016

0

Strategy&

- 2015

Strategy&

- 2016

Bain - 2015 Roland

Berger

- 2016

6

McKinsey

- 2016

McKinsey

- 2015

BCG - 2015

10

Roland

Berger

- 2015

ATK - 2015

11

14

ATK - 2016Bain - 2016 BCG - 2016

No dedicated

research function120

14

No dedicated

research function86

Ded

icate

d R

&K

fu

nctio

ns

Ratio: C

on

su

ltin

g s

taff

to

R&

K s

taff

Note: Strategy& research function is located in Egypt and

only supports ME

13

Mapping African offices

African Offices McKinsey BCG Bain A.T. Kearney Roland Berger Strategy&

Angola

Egypt

Ethiopia

Kenya

Morocco

Nigeria

South Africa

Official registered office (on respective websites)

Locations with activity but without operating offices

New registered office in 2015

Sources: Companies’ respective websites, Press Search, LinkedIn

14

Mapping the consultancy market in Africa – 2016 – Market growth



Sources: LinkedIn

All employees numbers and data presented are

best estimates based on the search conducted on

LinkedIn

3652

13

12

37

28

2015

77

2016

101

+31%

Moro

cco

5339

9

8

7

2016

3

3

+49%

73

2015

49

132

245205

98

55

46

37

367

+28%

18

2015 2016

469

Bain

McKinsey

ATK

BCG

Roland Berger

Strategy&

Nig

eria

South

Afr

ica

6

12

7

6

19

12

+58%

2015 2016

Angola

16

28

13

9

5

25

2015 2016

+84%

46

Egypt

108

20162015

+25%

Eth

iopia

40

10

20162015

+300%

Ke

nya

15

Mapping the consultancy market in Africa – 2016 – Market share



Sources: LinkedIn

2015

37%

2016

50%

63%50%

5% 8%

56%

2015 2016

52%

13%12%

28%27%

4%6%

80% 73%

14%

2015 2016

12%

11%

12%

36%37%

2016

51%

2015

47%

17%

20162015

64% 61%

20162015

28%36%

11%

20162015



LinkedIn

Morocco

Nigeria

South Africa

Angola

Kenya

Ethiopia

Egypt

Bain

McKinsey

ATK

BCG

Roland Berger

Strategy&

16

McKinsey & Company: A very strong footprint distributed across all Africa, with staff mostly based in South Africa

Sources: McKinsey website, Press Search, LinkedIn



LinkedIn



McKinsey & Co Registered Offices

Casablanca Office:Number of Employees: 52

Number of Consultants: 24

Number of Project Managers: 4

Number of Partners: 3

Managing Partner : Foreign national Cairo Office:Number of Employees: 13




Managing Partner : Egyptian AmericanLagos Office:Number of Employees: 53




Managing Partner : Foreign national

Luanda Office:Number of Employees: 7


Number of Project Managers 1


Managing Partner : NA

Johannesburg Office:Number of Employees: 245




Managing Partner: South African

This office has a Leadership Fellowship program

Addis Ababa Office:Number of Employees: 10





This office has a Young Leaders program

Nairobi Office:Number of Employees: 40





(Based in South Africa)

17

Bain & Company: A South African official focused footprint, with emerging full time presence in Nigeria

Sources: Bain website, Press Search, LinkedIn



LinkedIn



Locations with Bain activity without open offices

Lagos Office:Number of Employees: 8









Managing Partner: Foreign National

Bain Registered Offices

Cairo Office:Number of Employees: 5





18

The Boston Consulting Group: A South African & Moroccan focused footprint

Sources: BCG website, Press Search, LinkedIn



LinkedIn






Number of Partners/Principals: 6


Luanda Office:Number of Employees: 12



Number of Partners/Principals : 3





Number of Partners/Principal: 6

Managing Partner: Foreign national

BCG Registered Offices




Number of Partners/Principals : 3


19

A.T. Kearney: Official presence only in South AfricaFocused coverage of Angola & Nigeria, along with a large project in Ethiopia



LinkedIn







Managing Partner: Foreign national

ATKearney Registered Offices

Sources: ATKearney website, Press Search, LinkedIn

Locations with activity without open offices





Managing Partner : Managed by SA office

20

Roland Berger Strategy Consultants: A small presence in the region



LinkedIn












Managing Partner : Foreign national (Based in UAE)

Roland Berger Registered Offices

Sources: Roland Berger website, Press Search, LinkedIn

21

Strategy&: Small presence in Egypt only (part of a strong ME interest & footprint rather than African)



LinkedIn



Cairo Office:Number of Employees: 28





Strategy& Registered Offices

Sources: Strategy& website, Press Search, LinkedIn

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