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Sub-Saharan Africa

Please find below a sampling of some of the latest EMPEA statistics, programs and content covering information on Sub-Saharan Africa. For a more comprehensive listing, please search "Sub-Saharan Africa" and customizable criteria in Advanced SearchScroll down for additional data and resources.


Sub-Saharan Africa Data Insight (Q4 2013)

While the pace of private equity fundraising for Sub-Saharan Africa slowed in 2013, total capital invested in the region reached a five-year high, increasing by 43% from US$1.1 billion in 2012 to US$1.6 billion in 2013. An emerging trend was a shift in the geographic focus of funds raised within the region, where pan-Sub-Saharan African vehicles accounted for 92% of capital raised, a marked increase from 2012. Moreover, six funds in the market with targets above US$500 million have pan-Sub-Saharan African remits... Learn more »

 


Featured Case Study

KZ Noir (Rwanda)

In early 2011, Kaizen Venture Partners (KVP), which focuses on special situations in Sub-Saharan Africa, saw an opportunity to create value as well as improve the lives of Rwandan coffee farmers by consolidating several struggling Rwandan coffee producers under one holding company—KZ Noir. By supporting KZ Noir’s working capital needs and improving internal reporting and capacity utilization, KVP helped its investee companies recover profitability and increase sales at a CAGR of 73% from 2010 to 2012. Source: EMPEA, June 2013

Featured Survey

9th Annual Global LP Survey

Global limited partners in search of the next wave of growth are evaluating their emerging market exposure and increasingly seeking investment opportunities in less-penetrated markets. EMPEA's latest survey of institutional investors reveals that Sub-Saharan Africa, Southeast Asia and Latin America (excluding Brazil) are poised to see the greatest increase in new private equity commitments across the emerging markets over the next two years, edging out Brazil, China and India as the most attractive destinations for dealmaking. Source: EMPEA, May 2013


 

Sub-Saharan Africa Fundraising and Investment

Source: EMPEA
  Fundraising (US$m) Investment (US$m)

2013

922

1,610

2012

1,448

1,162

2011

1,332

1,059

2010

1,499

631

2009

964

2,889

2008

2,241

631

2007

2,034

NA

 


 

Additional Resources

Africa: Maximizing Investment Opportunities While Minimizing Risk
African markets, boasting 10 of the top 20 fastest growing economies in the world and five of the world’s top 10 reformers in 2012 according to the World Bank’s Doing Business rankings, hold exceptional promise for private equity investors. However, the lack of transparency and underdeveloped legal systems and institutional infrastructure in many African markets make assessing potential investments difficult.  Source: Legal & Regulatory Bulletin, Autumn 2012

Inside Perspectives: An Interview with African Capital Alliance's Okechukwu Enelamah
Okechukwu (“Okey”) Enelamah, a Founder and Chief Executive Officer of African Capital Alliance (ACA) shares his insights on the opportunity set in Africa and offers his advice on how to convert growing LP interest in the region into capital commitments. ACA is a private equity firm investing in West Africa, principally in Nigeria and countries in the Gulf of Guinea. Source: EM PE Review, July 2012.

Regulation of Private Equity in West Africa - Emerging Trends
In contrast to India and Mexico, where there have been serious efforts to introduce regulations specific to private equity, in the Western African jurisdictions surveyed here by Udo Udoma & Belo-Osagie and Norton Rose Africa Legal, with the possible exception of Nigeria, the adequacy of existing frameworks varies widely and generally leaves room for improvement. Source: Legal & Regulatory Bulletin, Winter 2012

Impact: Case Study: Fleurhof
The Fleurhof Project, a residential real estate development in Johannesburg, South Africa began construction in 2009. Private equity fund manager International Housing Solutions (IHS) has provided the majority of the equity financing for the project, which plans to eventually house over 30,000 moderate to mid-income urban workers and promote community through the inclusion of schools, religious sites, business centers and community gardens. Source: EMPEA 2012

EMPEA Special Edition Insight: Sub-Saharan Africa
The buzz surrounding the African private equity opportunity has escalated during the global economic crisis, as the region's brand has continued to subtly improve. Despite increased interest, actual private equity dollars in play in Sub-Saharan Africa remain at modest levels. However, significant developments currently taking place at the margins hold great promise for the region over the course of the next few fund cycles. Source: EMPEA, 2010