Stears, a financial data and software firm specializing in African markets, has published its Private Capital in Africa Report for Q3 2024. The report provides a deep dive into the continent’s evolving investment landscape, highlighting critical trends and developments shaping private capital flows. The report came up with following 10 key findings:
- Deal Count and Value: The quarter saw 73 private market transactions, with 39 deals disclosing a combined value of $2.27 billion.
- Equity Dominance: Equity featured in 75% of transactions, with 71% being strictly equity-based, while debt accounted for 19%.
- Sector Activity: Financial Services emerged as the top sector, driving 33% of all deals, followed by Consumer Goods (19%) and Energy (18%).
- Regional Leaders: Southern Africa led with 45% of deals, trailed closely by East Africa (41%) and West Africa (33%).
- Country-Level Trends: South Africa and Kenya dominated, each accounting for 33% of all transactions, reflecting their regional influence.
- Sectoral Regional Disparities: Financial Services deals were concentrated in East and West Africa (46% of all sector deals), while West Africa claimed a 46% share of energy transactions.
- Investor Hotspots: The “Big 5” economies—South Africa, Kenya, Nigeria, Ghana, and Egypt—drove 85% of all deals, cementing their status as key investment destinations.
- Debt-Financed Deals: Non-Big 5 countries relied more heavily on debt financing, with debt comprising 28% of deals compared to 18% for the Big 5.
- Localised Investments: Single-country deals made up 64% of the total, led by South Africa, Egypt, and Kenya. Agriculture was the most localized sector, with 91% of its deals confined to a single market.
- Technology Focus: All Technology investments were concentrated within the Big 5 economies, reflecting their robust ecosystems for innovation.
To download the full report, please link to Stears’ website
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