The Private Equity Market in Africa: Trends, Opportunities, Challenges, and Impact

Abstract

This article analyzes the steady growth of the private equity industry in Africa, noting, among other things, the infancy of the industry, the reasons behind its growth, the comparatively small size of the industry, and recent trends in the industry on the continent. It further analyzes the structure of private equity fundraising and investment in Africa by investigating and profiling private equity activity in the region by the scope of activity, sectors receiving the most attention, destinations, and the firms and investors. It argues that the private equity industry in Africa is growing, in part because the continent is loaded with business opportunities. The article further argues that to keep fund managers and investors interested in the continent’s PE market and surmount its inherent challenges, African governments must continue to adopt investor-friendly and business-friendly policies.

TOPICS: Private equity, frontier, legal/regulatory/public policy, portfolio construction