AVCA Research Release: North Africa Private Equity Investment Remains Resilient

30 Jul 2015

London, UK, 30 July 2015: North Africa private equity (PE) deal activity has remained relatively stable despite a challenging political and economic environment in recent years, new research by the African Private Equity and Venture Capital Association (AVCA) shows.

AVCA’s Spotlight on North Africa Private Equity, with the full report to be released to the Association’s members on July 30, highlights how PE firms’ continued appetite to invest in North African businesses has enabled the region to retain a 15% share of PE deal volume and value in Africa from 2007-14.

The research reported 156 PE deals in North Africa from 2007-2014, carrying a reported value of US$5.3bn and a median deal size of US$10mn. Morocco, Egypt and Tunisia attracted the lion’s share of North African deals, accounting for almost 90% of all deals in the region by volume and value, with Morocco taking the single greatest share (39%) of deal numbers in North Africa in 2007-2014.

Commenting on the research findings, Michelle Kathryn Essomé, Chief Executive of the African Private Equity and Venture Capital Association, said: “North Africa is resilient as evidenced by PE investment activity in recent years as PE firms are leveraging their skills, networks and resources to identify and execute value creation strategies in portfolio companies.”

Ponmile Osibo, Research Analyst at the African Private Equity and Venture Capital Association, added: “Deal volumes in North Africa have remained stable in recent years because of local PE firms’ continued appetite to invest in businesses, and the ability of small and medium-sized enterprises to successfully identify new export markets. We see this level of of deal activity as continuing. In addition, North African countries are enacting various reforms to stimulate economic growth and stabilise the political environment, while the recent fall in oil prices is further enabling non-oil exporting countries, such as Egypt and Tunisia, to improve trade balances – all of which will add further confidence to PE investors in the region.”

The full report, which includes further details and statistics on the exit environment and fundraising activity in the region, will be made available exclusively to the AVCA membership.

The Spotlight on North Africa Private Equity is available to download here.

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