Browsing: Africa’s private equity (PE)

• The African private equity (PE) industry, continues to prove itself and is once again on a growth trajectory
• Even though growth forecasts remained muted at the beginning of 2021, this was due to several African countries understandably grappling with persistent outbreaks of COVID-19
• North Africa and West Africa jointly attracted the largest share of PE deals by volume

Private equity fundraising in Africa managed to reach US$1.3bn in the first half of 2021 when including final and interim closes, a new report has revealed.

The 2021 H1 African Private Equity Data Tracker released by the African Private Equity and Venture Capital Association (AVCA) indicates that this is despite widespread decline felt by most economies across the globe, owing to the impact of the coronavirus pandemic.

The report noted that the African private equity (PE) industry, continues to prove itself and is once again on a growth trajectory, mirroring the gradual …

Africa is one of the world’s fastest-growing economies with the continent expected to be home to nearly 1.7 billion people by 2030 and have a combined business and consumer spending of $6.7 trillion according to the Brookings Institute.

This potential in the economy has made Africa attractive for investors seeking high growth businesses with long-term impact. Because of this, Venture Capital (VC) and Private Equity (PE) have emerged as important drivers for directing capital into these businesses hence stimulating capacity building and economic growth across Africa.

According to a report from the African Private Equity and Venture Capital Association (AVCA), African companies which are backed by PE and VC firms are among the most innovative and pioneering firms in the world and attract more international and local investments.

According to the report, despite the effect of the pandemic on businesses, many businesses backed by the PE and VC firms especially …