Private capital investment in Africa is a key driver of economic growth, with significant potential to transform businesses and sectors across the continent. However, this growth is not evenly spread. In Q3 2024 , five countriesSouth Africa, Kenya, Nigeria, Ghana, and Egypt emerged as the primary hubs for private capital, according to a new Stears report. These Big 5 economies alone accounted for 85 of all private capital deals, highlighting their dominant role in shaping the regions investment landscape.
The dominance of the Big 5 economies is no accident as they offer conducive environments for investment, more stable economic conditions, and policies that promote business growth. For example, Nigerias recent strides in fintech regulations and Kenyas robust mobile money ecosystem are two factors that have attracted international venture capital.
Technology is a crucial area of private capital investment, and the Big 5 countries are again at the forefront. For instance, in Q3 2024, Terrapay raised 95 million in debt financing to expand its remittance operations across Africa, demonstrating the appeal of these economies for tech-focused investment. With well-developed ecosystems that foster innovation, these countries continue to attract significant technology-driven capital.
In Q3 2024, 73 private market deals were recorded across Africa, with 39 deals disclosing a combined value of 2.27 billion. Most private capital activity was concentrated in Southern, East, and West Africa, with Southern Africa leading at 45, followed closely by East Africa at 41. West Africa accounted for 33 of the deals, while Central Africa lagged with only 8 of total transactions.
Sector-wise, financial services led the pack, contributing 33 of all private capital deals. Consumer goods followed closely, accounting for 19 of deals, with e-commerce making up 27 of that category as trade and commerce expanded across Africa. In contrast, the technology sector, while still growing, ranked fifth behind agriculture and energy, though 90 of tech deals were equity-based, signalling strong investor confidence in Africas tech future.
