Steady PE deal flow highlights continued confidence in African Private Equity

10 Sep 2018

AVCA releases new study presenting Africa’s Private Equity (PE) activity for the first half of 2018

London: The African Private Equity and Venture Capital Association (AVCA) today released its report analysing deal and fundraising trends in Africa PE, for the first half of 2018. The report provides robust data that illustrates the continued strength of African PE.

PE fundraising, including final and interim closes, totalled US$2.1bn, highlighting the continuing attractiveness of Africa’s investment landscape, 60% of this amount was allocated to infrastructure-related funds.

The total value of reported PE deals in the first half of 2018 was US$0.9bn, with the Consumer Discretionary, Financials and Consumer Staples sectors accounting for the highest volume of activity over the period. Specifically, the Financials sectors’ deal volume share increased to 16% in 2018 H1, from 10% in 2017 H1. These figures illustrate the significant potential of Africa’s growing middle class and their consumption patterns.

The Financials, Industrials and Utilities sectors accounted for the largest shares of overall deal value, representing 75% of the total. Notably, the Utilities sector increased its share of deal value to 37% in 2018 H1 from only 3% in 2017 H1.

West Africa continues to be a hotspot for PE activity, along with multi-region deals, with both attracting 46% of the total number of PE investments. In terms of value, multi-region deals accounted for the greatest share.

The outlook for the rest of 2018 and beyond is positive, with strong indications of sustained confidence in the African PE industry, as evidenced by the stable levels of PE activity.

'Tokunboh Ishmael, Chair of the AVCA Board and Co-Founder and Managing Director at Alitheia Capital, noted: “Africa’s private equity industry continues to grow, highlighting investors’ ongoing commitment to the continent. Consumer-focused deals have dominated investments for the first half of 2018, a testament to the resilience of Africa’s consumer story”

Enitan Obasanjo-Adeleye, Director and Head of Research at AVCA, added: “As the 2018 H1 Data Tracker illustrates, private investment in Africa is developing at an exciting pace. We have seen sustained PE investment in Africa over the last decade and we expect this to grow even further as investors increasingly recognise Africa as one of the most attractive destinations for investment. AVCA will continue to use its voice to champion and enable private investment across the continent.”

 For more information, and to download the report, please click here.

-ENDS-

« Back to AVCA News

Archive

Institutional Investors believe in the long-term attractiveness of African PE - especially when compared to develop… https://t.co/TPoVK6lC6I

RT @CDCgroup: We're very happy to announce that we'll soon be welcoming our first Chief Impact Officer. Liz Lloyd CBE will lead a team of 5…

RT @Mkessome: Global private equity managers are ready to double down on their African investments https://t.co/LzuDaoOPHa via @qzafrica @a…

@Mkessome @AVCA_Africa CEO, moderated a panel discussing the role of private equity in Africa growth story… https://t.co/JJZnU4Ko3l

@Mkessome @AVCA_Africa CEO, shared insight alongside @OMFIF @IFC_org @LeapFrogInvest @meridiam_news and SI Capital… https://t.co/UUxUiAkWxc

;