In a report dated June 13, the Kenyan investment firm Burbidge Capital said that the number of private equity deals (PE deals) in East Africa from January to April 2016 rose by 50% from 12 to 19 deals. However, despite volume going up, the value of these deals slumped by 83% from Sh73.5 billion ($728 million) in the first four months of 2015, to Sh12.4 billion ($123 million) over the same period in 2016.

Last year, the private equity business benefited from some main highlights that pulled its value up. These include Helios Partners selling its stake in Equity Bank for Sh50 billion (about $500 million) and British insurer Old Mutual buying for Sh15.5 billion, stakes of Abraaj Group, AfricInvest and Swedfund in UAP Holdings.

This year, major PE deals include the purchase by the Commonwealth Development Corporation (CDC) of 10.68% stake in I&M Bank from DEG (Germany’development finance institution) and Proparco (subsidiary of French Agency for Development, in charge of private sector). There is also New-York-based firm Kuramo Capital who invested Sh2 billion in Transcentury, by converting bonds.

According to Cytonn Investment, another Kenyan investment consulting firm, private equity deals should keep rising as investors keep seeking for profitable investments, which Kenya and Cote d’Ivoire presently offer. Much more so considering the recent crisis that banks went through and that should result in a concentration of the sector.

Idriss Linge