The African Private Capital Association (AVCA) has released its 2022 African Private Capital Activity Report, which provides detailed insights into private capital fundraising, investments, and exits across all subregions in Africa. Here are some of the key findings:
- Africa’s private capital markets experienced a record-high volume of deals in 2022, with 626 deals taking place, representing a remarkable 46% YoY growth in deal volumes.
- Despite global economic uncertainty, Africa is the only market worldwide that has experienced growth in both the number of deals closed and capital invested, with US$7.6bn of private capital invested in 2022, marking a 3% YoY growth in deal values across the continent throughout the year.
- Venture capital was the most active asset class, accounting for 74% of the total private capital deal volume and over half of private capital deal value, reflecting Africa’s changing demographics and the increasing interest in disruptive sectors.
- Private equity activity in Africa experienced a resurgence, with a 24% YoY increase in the number of deals and a 31% YoY increase in the value of those deals.
- West Africa witnessed the most private capital deals on the continent, while South Africa saw a surge of activity in private equity and infrastructure, reversing years of decline in investments in the wider Southern African region.
- Multi-region investments accounted for the largest deal volume, with investors channelling 37% of the total value of investments into portfolio companies with operations in more than one African economy.
- The financial sector was the most attractive sector across private capital deal volume (29%) and value (32%), followed by consumer discretionary services.
- Last year marked a record number of successful exits, with 82 exits spread across all sub-regions, dominated by the financial sector.
Read alsoInvestors Pull $1.6-Billion From Binance After US Lawsuit
According to Abi Mustapha-Maduakor, Chief Executive Officer at AVCA, “The growing diversity of asset classes in the private capital ecosystem unlocks broader investment opportunities across exciting geographies and represents a marketplace finding more solutions in response to our transforming economy. We are delighted to see strong performance in venture capital and growth in private equity and private debt. As our industry matures, AVCA’s metrics mark the evolution.”
Venture capital africa 2022 Venture capital africa 2022
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard