According to the most recent Stears Private Capital in Africa Report for Q3 2024, a staggering 85% of all private market transactions in that quarter took place in Nigeria, South Africa, Kenya, Ghana, and Egypt.
The research, which was released on Wednesday, indicates that only 15% of deals took place outside of these large economies, highlighting how attractive they are to private investors in Africa.
The five nations Stears referred to as its “Big 5” economies made deals in energy and technology.
Every quarter, the Stears Private Capital in Africa Report examines transactions in the African private market. It looks at major patterns in private investments, giving fund managers and business decision-makers important information about countries, sectors, and firms that attract private capital.
According to the survey, debt-based investments were more common in non-Big 5 nations (28 per cent vs 18 per cent in the Big 5), which is indicative of the markets’ comparatively stable and low-risk financing.
At the geographical level, South Africa accounted for 45% of all recorded private market transactions in Q3 2024, closely followed by East Africa (41%), and West Africa (33%). Central Africa only contributed 8% of transactions during that time, which was a substantial lag.
Financial services transactions were over-represented in both East and West Africa, accounting for 46% of all financial services transactions, surpassing their respective shares of total deals (East Africa: 41%, West Africa: 33%), making them the sector that benefited from the greatest investment.
