Letter from the CEO: Championing Job Creation in Africa

29 Jun 2017

We noted with interest the FT's recent comment piece highlighting the need for job creation in Africa, and the role that private equity (PE) can play in generating employment. Over the past eight years, AVCA has been tracking the employment impact generated by PE firms in Africa.

Our inaugural Africa Sustainability Study found that African portfolio companies had created an average 15% increase in jobs since receiving PE investment. This year, our second study - informed by data from over 231 companies representing a quarter of all PE-backed companies in Africa over the period – showed a 17% increase, with 91% of those jobs being permanent.

AVCA believes that the African private equity industry should be blazing a trail for job creation. However, we need to look beyond numbers of jobs created and focus on the type and quality of those jobs. Private equity can have a significant impact on gender diversity, which is crucial to driving development.

Our data shows that of the new jobs created by PE-backed companies in 2016, only 33% were held by female employees, leaving much more to be done in addressing the gender gap and helping to mobilise long-term capital. We will be working with our members to prioritise this and reporting back in 2018.

Michelle Kathryn Essomé
Chief Executive Officer
African Private Equity and Venture Capital Association

« Back to AVCA News

Senegal is taking a unique approach to closing its financing gap. Bloomberg @markets’s @alonsosotoj talks to FONSIS… https://t.co/7j6Gg5Flhn

Verod Capital Management makes investment into West Africa’s largest clothing manufacturer. Read more: https://t.co/izNBfvo2iw

Join us this September for training, thought leadership and networking opportunities in Lagos, Nigeria. Register To… https://t.co/Qomz9RqUfZ

@AVCA_Africa is coming to Lagos, this September! Join us from Wednesday, 11th September – Friday, 13th September fo… https://t.co/0dxQN0kNIZ

@norfund_ makes investment into Nigeria’s Sundry Foods, an integrated foods service company. Read more:… https://t.co/7xoVNhilcb

;