AFSIC hosted a flagship panel on private equity’s role in Africa’s growth.
Africa’s private-capital community gathered recently to reflect on the continent’s renewed economic energy and the shifting shape of investment across its markets. The discussion brought together leading voices in African private equity and debt. Franklin Amoo of Baylis Emerging Markets, Abdelaziz Abdel Nabi of Catalyst Partners Egypt, Sihle Gumede of Sanari Capital, Gbenga Ben Hassan of Argentil Capital Management, and Edmund Higenbottam of Verdant Capital. Between them, their experience spans digital infrastructure, financial inclusion, mezzanine finance, and frontier-market investing offering a window into Africa’s increasingly diverse and sophisticated investment ecosystem.
After a challenging few years, Africa’s private capital markets entered 2024 on firmer footing and closed the year with renewed confidence. According to AVCA, 485 investments worth USD 5.5 billion were completed, an 8 percent increase in deal volume and the second highest total on record. Smaller transactions dominated, with deals under USD 50 million making up more than half of total value. Fundraising also gained pace with Africa-focused funds securing roughly USD 4 billion in final closes, more than double the previous year while African investors accounted for nearly a quarter of commitments by mid-2025. Infrastructure and private debt have become two of the fastest-growing strategies.
The panelists agreed this shift toward smaller deals is not a step back but a smart recalibration. Franklin Amoo described it as a better fit for Africa’s market structure, supporting companies that are scaling but not yet on the radar of global buyers. Edmund Higenbottam added that the middle market offers more realistic valuations and healthier exit prospects than large-cap transactions. Managers today are focused less on financial engineering and more on building value strengthening governance, growing management depth, and backing expansion that delivers both returns and jobs.
Another clear trend is the rise of local capital. As DFIs retrench and inflation erodes the appeal of fixed-income assets, African pension funds are stepping forward. Gbenga Ben Hassan noted that Nigeria’s pension funds, which manage USD 20 billion, have so far allocated only USD 200 million to private equity and infrastructure leaving huge room for growth. New regulations could unlock billions more for alternative assets. In Egypt, Abdelaziz Nabi pointed to a similar pivot as local investors seek higher-yielding opportunities in mid-sized enterprises that drive most of the country’s employment and GDP.
Innovation is widening access, too. Catalyst Partners launched Egypt’s first private Special Purpose Acquisition Company (SPAC), combining steady cash-flow businesses with fintech growth, a model now inspiring regulators across the MENA region. In South Africa, Sihle Gumede shared how Sanari Capital raised an R85 million fund entirely from local institutions, underscoring the strength of domestic capital and the need to keep supporting emerging fund managers.
Closing the session, Edmund Higenbottam observed that Africa’s private capital cycle is maturing. The era of volatility is giving way to one defined by better-structured deals, deeper local participation, and a more sustainable rhythm of growth across the continent.