Dry powder refers to the amount of committed but uninvested capital held by private capital funds. The dry powder of the African private equity industry has been estimated using fundraising data and the average deployment period observed by RisCura.
Estimated Dry Powder from 2013-2024:
Interactive column chart: Dry Powder in Africa (USDbn)
View chart data
| Category | Dry Powder (USDbn) |
|---|---|
| 2013 | 6.94 |
| 2014 | 6.52 |
| 2015 | 8.11 |
| 2016 | 8.73 |
| 2017 | 8.42 |
| 2018 | 8.25 |
| 2019 | 9.33 |
| 2020 | 7.82 |
| 2021 | 8.91 |
| 2022 | 8.13 |
| 2023 | 7.34 |
| 2024 | 8.26 |
Between 2020 and 2024, dry powder levels averaged approximately USD 8.10 billion. By the end of 2024, Africa-focused fund managers were estimated to hold around USD 8.26 billion in dry powder. This represents an approximately 11% decrease from the 2019 peak of USD 9.33 billion.
Africa-focused private capital dry powder has declined moderately, indicating sustained investor interest despite macroeconomic challenges. The available capital pool points to continued capacity for investment across African private markets. However, deployment is likely to remain selective given the uneven availability of institutional-quality assets across sectors, geographies and company maturity profiles. Capital deployment is therefore expected to remain concentrated in sectors supported by stronger structural growth themes, including infrastructure, energy, financial services and technology-enabled business models.
The declines observed in 2020 and 2023, from USD 9.33 billion in 2019 to USD 7.83 billion in 2020, and from USD 8.14 billion in 2022 to USD 7.34 billion in 2023, can be attributed to investment funds continuing to draw on committed capital to invest in new businesses and support existing investments. Deployment rates have remained low, reflecting subdued deal activity, increased competition for high-quality assets, and heightened macroeconomic and political risks in certain markets. As a result, funds frequently retain higher levels of uninvested capital into subsequent fundraising cycles.
Annual estimated funds raised versus estimated dry powder, 2007-2024:
Interactive combination chart: Dry Powder versus Funds Raised
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| Category | Fundraising By Year | Dry Powder By Year |
|---|---|---|
| 2007 | 75.27895252 | 6.91375763 |
| 2008 | 56.67973844 | 7.74252607 |
| 2009 | 52.12016798 | 7.38632299 |
| 2010 | 27.51551422 | 7.18041593 |
| 2011 | 50.37720939 | 7.24843535 |
| 2012 | 55.81090653 | 6.5760207 |
| 2013 | 63.85121117 | 6.94706563 |
| 2014 | 85.69812026 | 6.52736582 |
| 2015 | 143.1 | 8.118956001 |
| 2016 | 186 | 8.73816926 |
| 2017 | 252.8 | 8.422951038 |
| 2018 | 207.7 | 8.251485653 |
| 2019 | 353.8 | 9.331593833 |
| 2020 | 278.6 | 7.826380084 |
| 2021 | 379.8 | 8.913308619 |
| 2022 | 403.3 | 8.136941936 |
| 2023 | 400.5 | 7.343264138 |
| 2024 | 305.3 | 8.263972876 |
Dry powder remains elevated relative to near-term deal activity, but this reflects a timing mismatch between fundraising and deployment rather than an absolute surplus of capital. Although capital is ultimately deployed, as evidenced by near-full investment over a typical fund lifecycle, deployment occurs gradually and reflects the market’s underlying characteristics. In Africa, dry powder is spread across a broad base of small- to mid-sized managers, many of whom pursue generalist, pan-African strategies. Elevated dry powder should therefore not be interpreted as immediate deployment pressure or a broad-based catalyst for valuation inflation. Deployment remains constrained by manager mandates, origination capacity, sector focus and the availability of sufficiently mature, investable businesses.
Macroeconomic volatility in key markets, such as currency fluctuations and inflationary pressures, has affected the pace of investor deployment and capital calls. Although improving macroeconomic conditions in certain jurisdictions have supported renewed investor interest, they have not yet led to a significant acceleration in the absorption of dry powder.
Globally, private equity dry powder remains elevated relative to historical levels, though it has eased from its 2023 peak. According to an S&P Global Market Intelligence analysis of Preqin data, global PE dry powder stood at USD2.18 trillion as at March 2025, down 5.2% from its year-end record of USD2.59 trillion in December 2023 (S&P Global Market Intelligence, “Private equity dry powder recedes from all-time highs amid slow fundraising”, 11 December 2025). This concentration of uncommitted capital continues to place deployment pressure on fund managers as investment periods mature and macroeconomic conditions evolve.
The level of dry powder confirms that capital remains available, but it does not imply immediate or indiscriminate deployment. Capital is distributed across managers with different mandates, geographies and sector preferences, while the supply of institutional-quality assets remains uneven. Investment activity therefore provides a more direct indication of where capital is actually being deployed and which markets and sectors are attracting investor conviction.