The African Private Capital Association (AVCA) has released its 2024 African Private Capital Activity report, providing insights into the evolving investment landscape across the continent.
Drawing on proprietary data across fundraising, investments, and exits, the report affirmed the strength and maturity of Africa’s private capital ecosystem despite persistent global macroeconomic headwinds.
The report found that African private capital activity showed notable resilience in 2024, marked by increased participation from African Limited Partners (LPs), continued reliance on proven sectors like Consumer Staples and Financials, and an increase in exit volumes.
After a turbulent period, 2024 also brought a moderately favourable environment for deal-making and capital deployment.
In 2024, African private capital fundraising more than doubled to $4 billion, representing the third highest final close value on the continent in the last decade. Infrastructure and private equity funds led fundraising activities, each making up 30 per cent of total capital raised. Development finance institutions (DFIs) were the biggest contributors, committing $1.4 billion, amounting to 42 per cent of the total.
At the same time, domestic investor participation grew significantly, with commitments from African pension funds, insurers, and corporates increasing 3.7 times, from $171 million in 2022 to $639 million in 2024. This marks a growing confidence in Africa’s long-term prospects and the impact of blended finance and co-investment models in mobilising local capital.
The investment landscape in Africa saw an eighth per cent year-on-year increase in volume as the continent recorded 485 private capital deals in 2024. While total deal value declined slightly to $5.5 billion (-7% YoY), this reflects investors’ growing preference for smaller, more strategic deal sizes amid macroeconomic uncertainty.
Private Equity experienced a notable resurgence with deal volume surging by 51 per cent year-on-year, reaching its highest level in over a decade.
Financials remained the most active sector, led by deal value, accounting for 23 per cent of total deal volumes and 33 per cent of deal values, while Consumer Staples demonstrated growth with deal volume increasing 67 per cent year-on-year and values doubling.
Regionally, Southern Africa recorded the highest deal volume (129 deals), followed by West Africa (105), East Africa (99), and North Africa (77).
At the close of 2024, Africa-focused fund managers held an estimated $10.3 billion in dry powder, equal to 36 per cent of total capital commitments secured between 2018 and 2024. At the prevailing deployment rate of $4.9 billion yearly, these reserves provide roughly two years of runway, highlighting the need for continued fundraising momentum.
By strategy, Private Equity funds (which control 35 per cent of the total) and Infrastructure funds (30 per cent) dominate Africa’s undeployed reserves, while Private Debt and Venture Capital accounted for 18 per cent and 12 per cent respectively.
Exit activities rose by 47 per cent, with 63 exits recorded across Africa in 2024, exceeding pre-pandemic levels. This trend reflects delayed exits by investors in anticipation of a more favourable economic climate following disruptions caused by the pandemic. Additionally, heightened pressure to return capital to Limited Partners (LPs) and demonstrate liquidity contributed to the uptick of exits in 2024.
Chief Executive Officer, AVCA, Abi Mustapha-Maduakor, said: “The rise of African institutional investors, growing infrastructure allocation, and the rebound in exits all point to a deepening and maturing private capital market in Africa. Despite a complex global environment, the ecosystem is adapting, pursuing smaller deal sizes, strengthening domestic capital mobilisation, and driving long-term value creation across sectors. These shifts reinforce the role of private capital in unlocking sustainable growth across the continent.”
