Deal activity in Africa grew strongly in 2014, according to the latest AVCA data. There was USD8.1bn worth of deals completed in 2014, the second highest on record.
Since 2007, 983 transactions have been completed with a total value of USD 34.5bn reflecting the improving environment for private equity in Africa. The main sectors attracting African private equity investments continue to be Fast Moving Consumer Goods (“FMCG”), Financials and Industrials, which have accounted for around 60% of private equity transactions by volume from 2007-2014.
Looking ahead, AVCA is upbeat. With fundraising also strong, the investment activity will continue to be directed towards the FMCG sectors, as well as infrastructure, real estate and energy. Sub-Sahara Africa (excluding South Africa) is the focus for investors. West Africa is now receiving the highest share of PE investments by number, providing evidence that PE is expanding well beyond South Africa, once the only nation to attract volume PE activity. (Image source: AVCA)