Private Equity in Africa: funding the gap and stimulating the economy

The African PE industry has become increasingly complex and diverse, with the arrival of global institutional investors in recent years paving the way for some of the world’s largest firms to enter the market. Between 2014 and 2019 the total value of the 1053 PE deals reported in Africa reached $25.4bn. While deal volumes have maintained an upward trend, their value has gradually eased, suggesting growing investor interest but smaller deal sizes. Moreover, in addition to consumer-driven industries, PE fund managers have diversified their strategies to invest across a variety of sectors such as IT, renewable energy, infrastructure and real estate.

The continent’s growing consumer class played a crucial role in driving much of this change, as did government efforts to move beyond commodity-based growth. This encouraged greater private sector participation and fostered expansion in a wide range of industries.

After the launch of the Private Equity & Venture Capital in Africa Covid-19 Response Report, produced in partnership with the African Private Equity and Venture Capital Association (AVCA), Oxford Business Groups meets members of the association to discuss how Private Equity can stimulate growth in the continent during the pandemic. Abi Mustapha- Maduakor, newly appointed CEO of AVCA,´Tokunboh Ishmael, Managing Director of Alitheia Capital, Antoine Delaporte, Managing Partner of Adenia Partners and Ziad Oueslati, Executive Co-founding partner of Africinvest will be joining us to share their thoughts about the role of Private Equity in the continent, bridging the funding gap for essential services, providing guiding and support for companies during the pandemic, and the exit landscape in Africa.