African private equity sector remains robust, finds report

first_img“The datafrom the annual Data Tracker shows that investors remain bullish aboutAfrica’s prospects and we are proud to continue educating and informing localand international investors about opportunities on the continent.” The African Private Equity and Venture CapitalAssociation (AVCA) today released its annual report analysing activity in the private equity (PE) sector,incorporating regional spotlights covering Southern, West, North and EastAfrica, alongside exit data for the first time. The reportreveals that African PE has remained robust with the total value of fundraisingincreasing to $2.7 billion in 2018 from $2.4 billion in 2017, indicatinginvestors’ ongoing confidence in African PE. The total value of African PE fundraising between 2013 and 2018 was $17.8 billion and the median size of final closed funds over the same period was $123 million. Read more: Africa’s GDP growth projected to hit 4% in 2019 In total273 exits were reported between 2013 and 2018. There was a slight decline inexit activity between 2017 and 2018, with the number of exits dropping from ahigh of 52 to 46, with this being attributed to uncertainty in South Africa,which saw its share of exit volume decline from an average of 42% between 2013and 2017 to 20% in 2018. The report alsoprovides political, economic and regulatory contexts for key markets, as wellas two case studies per region.  Reflecting the attractiveness of businesses UNDP China, CCIEE launch report to facilitate low-carbon development Directorand head of research at AVCA, Enitan Obasanjo-Adeleye, commented: “African PEcontinues to present exciting developments and we are encouraged by theincrease in fundraising in 2018 relative to the previous year. Featured image: Stock RELATED ARTICLESMORE FROM AUTHOR Over the2013 to 2018 period, Southern Africa attracted the largest number of PE dealsat 294, while West Africa had the largest share of deals by value at $10.8 billion. Meanwhile,Communication Services and Utilities were the largest sectors by value in 2018. Meanwhile,the growing trend of exits to PE & other financial buyers, which emerged in2016, persisted in 2018, accounting for 37% of exits. In terms ofsectors, Information Technology, Consumer Discretionary and Consumer Staplesaccounted for almost half the total number of PE deals last year, reflectingthe attractiveness of businesses that capitalise on Africa’s growing consumermarket. center_img Exits totrade buyers accounted for the largest share of exits at 39% in 2018, up from25% in 2017. Low carbon, solar future could increase jobs in the future – SAPVIA Notably,Information Technology’s share of deal volume has significantly grown in recentyears, nearly doubling to 19% in 2018 from only 10% two years prior. Finally,North Africa had the largest median deal size at $8 million, while East, Westand Southern Africa each had a median deal size of $6 million over the sameperiod.  Todownload the report click here. The datashows that 1,022 reported deals worth a total of $25.7 billion took place from2013 to 2018. Exit activity Finance and Policy AFD and Eskom commit to a competitive electricity sector TAGSeconomic outlookeconomic transformationfinance & investment Previous articleUganda: $27m approved for Kikagati hydropower plantNext articleTender: TCN requires supply of power equipment in Lagos Babalwa BunganeBabalwa Bungane is the content producer for ESI Africa – Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast. BRICS Generation While thevalue of PE deals dropped marginally in 2018 to $3.5 billion from $3.9 billionin 2017, the number of PE deals encouragingly reached a six-year peak of 186 in2018.  last_img read more