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 sector

Fundraising in 2018 Download the graph PDF (26KB)

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

Another trend observable from the breakdown of fundraising in investment themes is the high proportion of funding raised for infrastructure themes. When infrastructure and energy are combined, the result represents almost half of all funds raised. Of the total USD 3.8bn PE fundraising closed in 2019, USD 1.6bn is focused explicitly on the infrastructure and energy sector, a 24% increase when compared to the fundraising closed in 2018.

This reflects the high level of interest in infrastructure as an investment theme and the growing realisation that Africa cannot fund its infrastructure gap through government balance sheets but requires significant private sector investment. The AfDB estimates around USD 130-170bn is needed annually in Africa to spend on its infrastructure and energy needs, with most allocated to maintenance and rehabilitation of existing infrastructure that has become outdated and inefficient. With South Africa, one of the continent’s largest economies, announcing an infrastructure-led recovery plan from the pandemic even more activity is expected in this sector.

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