Education, technology and finance are seen by specialists as the sectors that will continue to dominate private equity transactions in Africa in the year 2021.
“We are planning more investments there. The pandemic has illustrated the effectiveness of technology in improving the resilience and capacity of the continent to manage external shocks and risks,” said Dara Oweyemi, the current acting director of the African Private Equity and Venture Capital (AVCA) on the sideline of AVCA Live, a recent event organized by the organization that took stock of the sector in Africa.
According to Oweni, beyond the challenges and negative consequences, the Covid-19 pandemic has generated several opportunities.
“The digital economy has an impact on the development of the continent by promoting the creation of new jobs and providing new solutions through innovation in healthcare, education and technology” said Ms. Oweni.
With the coronavirus, companies that are part of the portfolio of companies of private equity firms have displayed different needs, she said. Some, for example, need to improve the efficiency of their operating processes. On the other hand, others mainly need cash. New financing solutions will be needed to provide answers.
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The 2021 outlook for private equity in the region remains uncertain, however. In 2020, some capital investment firms and institutions targeting Africa increased their available resources. However, the new transactions will take into account the take-over policies of the countries, as well as the evolution of the situation at the global level.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer