The African Private Capital Association (AVCA) has released its 2024 Activity Report, providing insights into the evolving investment landscape across the continent.
Specifically, AVCA disclosed that in 2024, African private capital fundraising more than doubled to $4 billion, representing the third highest final close value on the continent in the last decade, with infrastructure and private equity funds led fundraising activity, each making up 30 per cent of total capital raised.
Also, at the close of 2024, Africa focused fund managers held an estimated $10.3 billion in dry powder, equal to 36 per cent of total capital commitments secured between 2018 and 2024.
However, drawing on proprietary data across fundraising, investments, and exits, the report affirms the strength and maturity of Africa’s private capital ecosystem despite persistent global macroeconomic headwinds.
The report finds that African private capital activity showed notable resilience in 2024, marked by increased participation from African Limited Partners (LPs) continued reliance on proven sectors like Consumer Staples and Financials, and an increase in exit volumes. After a turbulent period, 2024 also brought a moderately favourable environment for dealmaking and capital deployment.
The report said that Development Finance Institutions (DFIs) were the biggest contributors, committing $1.4 billion, amounting to 42 per cent of the total. At the same time, domestic investor participation grew significantly, with commitments from African pension funds, insurers, and corporates increasing 3.7 times—from $171 million in 2022 to $639 million in 2024.
This marks a growing confidence in Africa’s long-term prospects and the impact of blended finance and co-investment models in mobilising local capital.
The investment landscape in Africa saw an 8 per cent year-onyear increase in volume as the continent recorded 485 private capital deals in 2024. While total deal value declined slightly to $5.5 billion (-7 per cent Year on Year), this reflects investors’
