Q3 2024 Private Capital Activity in Africa

This series offers an overview of Africa's Private Capital Activity, with this report highlighting key trends in investments, exits, and fundraising observed during the third quarter of 2024.

Key Findings

• Steady Deal Volume Amidst Decline: 287 private capital deals were concluded in Africa in 2024 YTD, just shy of the 5-year average of 294 deals despite an 11% YoY decline. The volume highlights Africa’s sustained investment appeal despite global headwinds.
• Investment Declines with Shift to Smaller Deals: Year-to-date investment fell to US$1.9bn, setting a slower pace in African deal values unseen since 2020. Meanwhile, deals over US$50mn contracted by 75% as investors shifted focus to smaller commitments.
• Private Debt Outperforms: Amidst wider value downturns for every other asset class, private debt stood out as a growth area with deal values growing 14% YoY. Private debt provided a capital lifeline for the continent's financial services sector in 2024, particularly for lending firms.
• Regional Resilience with West African Setback: While most regions maintained stable deal volume, West Africa saw a 30% YoY decline. Deal values fell more broadly across the continent, particularly in West and East Africa.
• Fundraising Stays Strong: Private capital fundraising in Africa remained stable. US$2bn in final closes was raised to date in 2024 - on track with 2023’s full-year benchmark of US$1.9bn.
• Exits on Track to Match 2023 Volumes: With 31 exits reported year-to-date, exit activity is on course to match last year’s levels. Trade Sales remain the primary exit strategy, particularly in the financial sector.