Private equity

Fundraising over time

Before the significant market contraction in early 2020, private equity fundraising activity across Africa continued to show strong growth in the 2019 calendar year.

By region

Fundraising in 2018 Download the graph PDF (26KB)

*2020 relates to the six-month period ended June 30 2020.

The regional split and the investment themes of funds raised indicates that the market still favours generalist funds with a wide regional mandate. This may be due to Africa’s economies remaining largely informal and fragmented.

According to the IMF, the informal sector makes up from 20%-25% of GDP on the lower end, in Mauritius, South Africa, and Namibia, up to a high of 50%-65% in Benin, Tanzania, and Nigeria. Along with small, fragmented, and poorly connected markets and a high cost of compliance, these factors limit the number of investable opportunities available to investors. This limitation necessitates a wider mandate to ensure sufficient opportunities with a desirable risk and return profile that can be identified and evaluated.

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