Finance

Southern Africa, first in private equity transactions on the continent in 2014-19 (report)

Southern Africa, first in private equity transactions on the continent in 2014-19 (report)
Wednesday, 02 December 2020 05:02

Southern Africa is the continent's leading region in terms of the number of private equity transactions completed between 2014 and 2019, according to a report published late November by the African Private Equity and Venture Capital Association (Avca). The region accounts for 26% of the total investments made across the continent, with 311 deals closed for a total of $3.8 billion.

South Africa is the most attractive country in the region. The rainbow nation alone accounts for 65% of the investments made in Southern Africa. According to the Avca study, this situation can be explained by all the initiatives taken by the government to attract investors. Last year, during a conference, the country mobilized 365 billion rand from several investors and companies.

Zambia is the second most attractive country in the region with 11% of total investment. Mozambique, Mauritius, and Namibia complete the top 5, respectively.

Overall, the African continent recorded a total of 1,053 private equity transactions for a total of $25.4 billion over the period indicated. Local and foreign investors have invested more in the consumer goods sector, industry, and financial services as well as information and communication technologies.

Chamberline Moko

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