In the third quarter of 2024, private capital investments in Africa totaled $2.27 billion, with a focus on equity investments as per the latest Stears Private Capital in Africa Report. These investments are made by private investors or firms directly into companies, projects, or assets, rather than through public markets or government funding.
The report highlighted that during this period, there were 73 private market deals across Africa, with 39 deals revealing a combined worth of $2.27 billion. The majority of private capital activity was observed in Southern, East, and West Africa, with Southern Africa leading at 45%, followed by East Africa at 41%. West Africa accounted for 33% of the deals, while Central Africa had only 8% of total transactions.
The primary hubs for private capital were identified as South Africa, Kenya, Nigeria, Ghana, and Egypt, collectively known as the ‘Big 5’, which represented 85% of all private capital deals. The report also noted a preference for equity-based deals, making up 71% of transactions, with debt financing comprising only 19%.
Consumer goods and technology were the sectors that attracted the most equity investments, making up 86% and 90% of equity-based transactions, respectively. These sectors reflect the increasing demand for consumer-centric solutions and digital infrastructure in Africa.
In the technology sector, Terrapay received a $95 million loan package to expand its operations in Africa, highlighting a growing interest in digital infrastructure on the continent. On the other hand, debt financing was more concentrated in agriculture and energy, which represented 79% of all debt deals, emphasizing their significance for long-term capital deployment in Africa’s infrastructure and energy development.