Browsing: private equity (PE) and Venture Capital In Africa

• Africa’s venture ecosystem experienced a marked downturn in 2023, mirroring broader declines in venture capital to startups in the global market.
• Both the volume and value of venture capital investment decreased by close to a third in 2023.
•  Africa attracted a combined $4.5 billion in venture capital and venture debt investment during the year, across 603 deals.

The high investor flight seeking better returns from markets abroad negatively impacted on Startups in Africa, as venture capital deals dropped in 2023 amid a turbulent time that saw the closure of some key firms.

Africa’s venture ecosystem experienced a marked downturn in 2023, mirroring broader declines in venture capital to startups in the global market.

After a record-breaking year for investor interest in African ventures, with over 1,100 unique investors participating in deals in 2022, there was a dramatic reversal of this trend last year, industry data shows, as the number …

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 …