In some respects, things have never been better when it comes to private equity in Africa. Despite global economic headwinds, for example, some US$7.6 billion was invested across 626 deals in 2022 (versus US$7.4 billion over 429 deals in 2021, a year in which interest rates were still low and investors could borrow money for practically nothing). It’s also true that there were 82 exits, compared with 36 in 2021. That’s 82 companies where investors saw the potential for growth and helped build them to the point where they were ready for an exit. These stats not only show increased investment in Africa but that the investments made are paying off at an increasing rate. In theory, those numbers should keep growing, helping build better business and investment environments around the continent. The thing is, for all the good that private equity has done on the African continent, I can’t help but feel that we could do better. More specifically, I think it’s time for the sector to take its next branch into a full investment proposition for global investors. Finance Monthly. Investment 75
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