powering up

2022: A prosperous year for African private equity

By Aurélie Benoit

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Posted on January 3, 2023 09:34

 © Health and energy: two safe havens on the continent. Science Photo Library/AFP
Health and energy: two safe havens on the continent. Science Photo Library/AFP

History has been made. More than $7.2bn (nearly €6.8bn) was raised on the continent through the first three quarters of 2022, almost completely eclipsing 2021’s fundraising numbers. Though 2022’s fourth quarter numbers have not yet been released to the general public, 2022 is already shaping up to be one of the most prosperous years in the history of African private equity. 10 years after Africa Rising, the sector has witnessed a true growth in interest.

According to figures provided by the African Private Equity and Venture Capital Association (AVCA) – a leading organisation in this sector – the number of venture capital operations exploded over the first six months of the year, with a total of 338 deals against just 195 over the same period 12 months prior.

On the value side, some $4.2bn in transactions were completed before the end of June 2022, an increase of 55% compared to the first half of 2021. This clear upward trend has also impacted the involvement of potential investors and companies: by the end of December, there were more than 100 companies sharing the management of 260 different investment funds between Tangier, Morocco and Cape Town, South Africa.

Twenty years ago, only a handful of investment players revolved around organisations like Amethis, Emerging Capital Partners, and AIIM. Times have truly changed.

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