Private Equity in Africa steps up a gear in 2016

28 Feb 2017

Tuesday, 28th February 2017, London: Private equity investment in Africa continues to go from strength to strength, evidenced by a new report from the African Private Equity and Venture Capital Association (AVCA). AVCA’s 2016 Annual African Private Equity (PE) Data Tracker shows a marked increase in the total deal value during 2016.

Overall, there were 145 PE deals reported in Africa over the course of the year, amounting to US$3.8bn – versus US$2.5bn in 2015 – highlighting the robust nature of Africa’s investment landscape amidst global headwinds and worldwide political shifts.

In terms of deal size, several large transactions in the energy and utilities sectors in 2016 contributed to the notable rise in total deal value compared with the previous year. The total value of deals above US$250mn was also significantly larger than in 2015.

African PE funds registered a final close total of US$2.3bn in 2016, which although lower than the previous year, supports an upward trend over the past 5 years.

West Africa continues to be the focus for PE investments by region, holding a 27% share of both number of deals and deal value between 2011 and 2016.

The 2017 outlook is positive, with strong indications of sustained confidence in the African PE industry. With political stability returning to North Africa, it is expected that there will be a growing appetite for investment in the region, along with under-served markets such as Central Africa.

Commenting on the report, Cyril Odu, Chief Executive Officer at African Capital Alliance, noted: “As the effects of rapid urbanisation, a resilient and adapting middle class and accelerating consumption patterns begin to take shape, increasing investor interest will continue to boost deal flow and intensify capital injections. As the 2016 Annual PE Data Tracker shows, private investment in Africa is developing at an exciting rate.”

Enitan Obasanjo-Adeleye, Director and Head of Research at AVCA, added: “Africa’s PE potential is coming to fruition as illustrated here through another year of strong results. This is no flash in the pan; we now have seen strong and sustained PE investment in Africa over the past 10 years and AVCA will continue to play its role as a major enabler and champion for PE investment in Africa as the region becomes more widely recognised as the world’s most exciting and attractive frontier investment destination”.

 

To download the public version of the report, please click here.


The full report will be made available exclusively to the AVCA membership.

ENDS

AVCA: Enabling private investment in Africa

The African Private Equity and Venture Capital Association is the pan-African industry body which promotes and enables private investment in Africa.

AVCA plays an important role as a champion and effective change agent for the industry, educating, equipping and connecting members and stakeholders with independent industry research, best practice training programmes and exceptional networking opportunities.

With a global and growing member base, AVCA members span private equity and venture capital firms, institutional investors, foundations and endowments, pension funds, international development finance institutions, professional service firms, academia, and other associations.

This diverse membership is united by a common purpose: to be part of the Africa growth story.

www.avca-africa.org | www.avcaconference.com

For further information, please visit the AVCA website or contact AVCA at: avca@avca-africa.org or +44 (0)20 3874 7008

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