London City

(Reuters) -

When Zambian farming firm Zambeef Products began considering a dual listing of its stock, it looked at both the Johannesburg exchange and London's AIM market.

Although Johannesburg was closer to home for Lusaka-based Zambeef, the London Stock Exchange's higher profile won in the end, and in June the company became the first Zambian firm to list on the AIM, a market for smaller companies.

"It was a tough decision," said Zambeef executive director Yusuf Koya, taken after plenty of internal debate.
"A key factor in the decision process was London's reputation as the world's financial centre, which allows us to access a potentially wider range of investors and liquidity."

As African companies increasingly look to do dual listings, many, like Zambeef, opt for London over Johannesburg, challenging the Johannesburg Stock Exchange's aim to become the gateway to Africa's capital markets.

A total of 104 African companies are listed on the London exchange, with the majority on AIM. The combined market value of African companies listed in London is now bigger than every African exchange except Johannesburg.

Just under $2.1 billion was raised by African companies on the London bourse in 19 transactions in 2010, representing about 90 percent of all equity capital raised by Africa-focused companies in 2010, said Ibukun Adebayo, the LSE's head of equity primary markets.

Dual listings are critical for companies that outgrow their home exchanges, where thin liquidity keeps large investors out.