Highest ROE Stocks in Africa 2026 — Return on Equity Across 7 Exchanges
Which African stocks deliver the highest return on equity? ROE rankings across 516 stocks on JSE, BVC, EGX, NGX, NSE, BVMT and BRVM. Top performers by sector and exchange.
Return on Equity (ROE) measures how much net profit a company generates for each dirham, CFA franc, pound, or shilling invested by shareholders. An ROE of 15% means the company generates 15 cents of profit for every unit of equity.
But beware: a high ROE can signal excellent operational management — or excessive financial leverage. The DuPont decomposition settles the question:
ROE = Net Margin x Asset Turnover x Equity Multiplier
In other words: how much margin does the company extract from each sale (efficiency)? How fast does it turn its assets (productivity)? And how much debt amplifies the return (risk)?
Across African markets, this decomposition is crucial. In hyperinflationary or severe devaluation environments (Egypt, Nigeria), historical book equity remains static while nominal earnings artificially inflate — producing mathematically elevated ROE figures that mask reality. Conversely, in mature, regulated sectors (JSE banking), strict capital adequacy requirements suppress the equity multiplier, forcing institutions to achieve superior returns through operational efficiency alone.
Casablanca Stock Exchange (BVC) — Insurance and Infrastructure Dominate
AFMA posts the highest ROE on the continent: 102.1%, consistent over three years (120.5% in 2022, 109.3% in 2023, 105.6% in 2024). DuPont decomposition reveals the quintessential asset-light model: insurance brokerage requires virtually zero tangible equity to generate massive commission revenues. Net margin of 25.3%, near-zero leverage (D/E = 0.24x). This is "pure" ROE — driven entirely by operational profitability. The market knows it and pays the price: P/B of 16.7x. Global comparison: European insurance brokers (Marsh, AON) post 25-35% ROE — AFMA outperforms them 3x through an incomparably leaner cost structure.
Marsa Maroc illustrates port monopoly power: 25.3% margins, D/E of 0.44x, +49% net income growth. P/B reaches 15.3x — investors are pricing in the MAD 16 billion investment program and the Nador West Med terminal activation by 2027.
Maroc Telecom maintains a rising 28.1% ROE (3-year average: 21.0%). The "quality compounder" profile: dominant position, reasonable leverage (D/E = 0.42x), 19% net margin, attractive dividend yield. P/B of 3.4x remains reasonable for this ROE level.
Tunis Stock Exchange (BVMT) — Zero Debt Makes the Difference
Rank
Ticker
Company
Sector
ROE
3yr Avg
D/E
Net Margin
1
MGR
Marches de Gros
Food Distribution
23.9%
—
—
—
2
TPR
TPR
Manufacturing
21.2%
21.3%
0.11x
14.2%
3
SFBT
SFBT
Beverages
19.9%
20.6%
0.02x
20.2%
4
ARTES
ARTES
Telecommunications
18.4%
14.9%
0.00x
13.7%
5
BIAT
BIAT
Banking
Top-Tier
—
—
—
The Tunisian podium is characterized by near-zero debt. SFBT — Tunisia's dominant brewer — shows a D/E of 0.02x (essentially zero debt) with a 19.9% ROE driven entirely by a 20.2% net margin. No leverage. The "cleanest" ROE on the continent.
Marches de Gros (MGR) leads non-financials with 23.9% ROE — outperforming global consumer staple peers (average 20.6%). The DuPont key: intense asset turnover. As a central wholesale market operator, massive daily revenues flow through a constrained, depreciated physical asset base.
BIAT — the BVMT's largest capitalization (14.5% of the market), +22.9% price appreciation in 2024 — generates top-tier ROE through its unparalleled deposit franchise (lowest cost of funding in the sector), producing immense net interest margins. P/B of 1.9x — investors pay for this quality.
Egyptian Exchange (EGX) — Extreme Returns and the Nominal Mirage
Rank
Ticker
Company
Sector
ROE
3yr Avg
D/E
Net Margin
1
HELI
Heliopolis Housing
Real Estate
89.1%
83.0%
0.00x
50.0%
2
ALCN
Alexandria Container
Port Operations
61.3%
59.5%
0.01x
79.2%
3
EAST
Eastern Company
Tobacco
58.1%
54.1%
0.69x
26.0%
4
JUFO
Juhayna Food
Food & Beverages
43.1%
28.6%
0.62x
11.3%
5
CIEB
Credit Agricole Egypt
Banking
37.4%
36.5%
0.08x
57.7%
The EGX displays the most spectacular ROE figures on the continent: the EGX100 average reaches 29.06%, and 50% of companies exceed 40% ROE. But these numbers demand context.
Alexandria Container (ALCN) — 61.3% ROE, 79.2% net margin, zero debt — is a monopoly port operator whose USD-denominated revenues mechanically explode in Egyptian pounds after each devaluation. The ROE reflects FX dynamics as much as operational efficiency.
Credit Agricole Egypt (CIEB) deserves particular attention: 37.4% ROE with a D/E of just 0.08x — remarkably low for a bank — and a 57.7% net margin. Explanation: low-cost deposits invested in historically high-yield treasury bills. The sustainability question: will this ROE survive a rate cut? P/B of 1.3x — the market clearly doubts durability.
Global comparison: Commercial International Bank (COMI), Egypt's largest bank, posts a 36.2% three-year average ROE, crushing the global banking average (10-12%). Yet it trades at just 1.6x P/B and 3.9x P/E — the market applies a massive "macro penalty" (devaluation, inflation, sovereign risk).
JSE (Johannesburg) — Consistency and Quality Come at a Price
Rank
Ticker
Company
Sector
ROE
3yr Avg
D/E
Net Margin
1
CLS
Clicks Group
Pharmacy Retail
45.1%
44.7%
0.60x
6.2%
2
GFI
Gold Fields
Mining (Gold)
42.3%
27.3%
0.38x
40.8%
3
LHC
Life Healthcare
Healthcare
34.0%
24.6%
0.35x
15.4%
4
MRP
Mr Price Group
Retail
27.2%
27.0%
0.65x
9.2%
5
CPI
Capitec Bank
Banking
27.0%
25.1%
0.10x
31.2%
The JSE stands out for consistency: Clicks maintains 44.7% over three years, Mr Price 27.0%, Capitec 25.1%. This signals mature models and disciplined management.
Clicks Group is the textbook case of ROE through asset turnover: a modest 6.2% net margin, but a network of 900+ pharmacies generating immense sales volume relative to an optimized equity base.
Capitec Bank — South Africa's most profitable bank. 27% ROE with a 0.10x D/E (exceptional for a bank). The DuPont decomposition is crystal clear: an entirely digital model that compresses operational costs, a 31.2% net margin. South Africa's major banks post a combined 19.5% ROE with an 18.3% CET1 ratio and 448 basis points net interest margins — confirming that South African banking ROE is driven by margins, not leverage.
Kumba Iron Ore (KIO) — 26.6% ROE, zero debt, P/B of 1.8x. One of the rare mining stocks where high ROE is entirely funded by margins.
NGX (Lagos) — Beware Naira Distortions
Rank
Ticker
Company
Sector
ROE
3yr Avg
D/E
Net Margin
1
OKOMUOIL
Okomu Oil Palm
Agriculture
113.3%
79.5%
0.09x
32.1%
2
ARADEL
Aradel Holdings
Oil & Gas
Very High
—
—
56.0%
3
MTNN
MTN Nigeria
Telecoms
202.8%
205.9%
0.76x
21.4%
4
NGXGROUP
NGX Group
Exchange/Finance
23.4%
—
—
—
5
NESTLE
Nestle Nigeria
Food & Beverages
814.3%
364.8%
35.08x
8.7%
Nigeria demands the most careful reading on the continent.
Nestle Nigeria at 814% ROE is a textbook trap. D/E of 35x: equity has been wiped out by accumulated FX losses. The ROE is mathematically explosive without reflecting any real operational performance. THE case study to avoid in any mechanical screening.
In contrast, Okomu Oil Palm is a quality ROE: 113.3% with a 32.1% net margin and 0.09x D/E. Nigeria's premier palm oil producer — structural domestic demand, rising prices.
Aradel Holdings — the NGX phenomenon. Operating margin of 56%, EBITDA margin of 70.7%. An 11,000-barrel/day refinery, indigenous energy operator. The stock jumped +94% after listing — the market pays massively for the ability to extract extreme margins from local refining.
NGX Group (the exchange itself) — 23.4% ROE (89th percentile of frontier financials). In monopoly position, trading volumes from bank recapitalizations flow directly to the bottom line. The ultimate asset-light model.
NSE (Nairobi) — The Paradox of Absurd Discounts
Rank
Ticker
Company
Sector
ROE
3yr Avg
D/E
Net Margin
1
BAT
BAT Kenya
Tobacco
33.9%
32.2%
—
22.6%
2
SCOM
Safaricom
Telecoms
31.2%
24.5%
0.29x
18.1%
3
EQTY
Equity Group
Banking
21.5%
—
—
—
4
KCB
KCB Group
Banking
Top-Tier
—
—
—
The NSE presents the continent's most glaring valuation anomalies. Equity Group generates a phenomenal 21.5% ROE and 2.8% ROA, yet trades at just 0.8x P/B. KCB Group at 0.7x P/B.
When a stock generates a consistent ROE above 20% but trades below book value (P/B < 1), the market signals extreme pessimism about the sustainability of those returns — in Kenya's case, the sovereign risk premium (government debt exposure, Eurobond anxieties).
In contrast, Safaricom at 31.2% ROE and 5.0x P/B benefits from fintech monopoly status that insulates it from sovereign credit risk. M-Pesa is the country's financial infrastructure — massive returns without balance sheet risk.
Cross-Cutting Analysis: Lessons from African ROE
Which Sectors Consistently Deliver the Highest ROE?
1.Asset-light brokerage/insurance (BVC): AFMA at 102%, AGMA at 42%. Zero tangible assets required.
2.Port and infrastructure monopolies (BVC, EGX): Marsa Maroc at 35%, Alexandria Container at 61%. Irreplaceable assets.
4.Tobacco (EGX, NSE): Eastern Company 58%, BAT Kenya 34%. Inelastic demand, low capital intensity.
5.Digital banking (JSE): Capitec 27% with D/E of 0.10x. Tomorrow's model.
The African Bank Leverage Myth — Demolished by Data
South Africa's major banks post an 18.3% CET1 ratio — they are massively overcapitalized. Despite this mathematical drag on the equity multiplier, they generate a combined 19.5% ROE. How? Through 448 basis points net interest margins (vs 150-200 bps in Europe). African Bank reaches 960 bps NIM.
Verdict: high ROE in African banks is a product of margins, not leverage. This is the exact opposite of what most foreign investors assume.
The ROE / P/B Relationship: Where Value Hides
Stock
ROE
P/B
Verdict
AFMA (BVC)
102%
16.7x
Market fully pays for exceptional ROE
SFBT (BVMT)
20%
0.1x*
Probable anomaly (accounting verification needed)
Credit Agricole Egypt
37%
1.3x
Discounted — market doubts sustainability
Capitec (JSE)
27%
9.5x
Premium — quality recognized and priced
Equity Group (NSE)
21.5%
0.8x
Extreme discount — sovereign risk premium
Kumba Iron Ore (JSE)
27%
1.8x
Moderate — mining cyclicality priced in
The best opportunities sit where high, sustainable ROE coexists with reasonable P/B — typically:
•Egyptian banks (CIEB at 1.3x P/B for 37% ROE)
•Tunisian industrials (TPR at 1.4x P/B for 21% ROE)
*Information provided is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Stock market investments carry risk of capital loss.*
