Africa has the fastest growing private equity market in the world: German Vegarra, Africa Head of Industry, International Finance Corporation (Video)

Africa has the fastest growing private equity market in the world: German Vegarra, Africa Head of Industry, International Finance Corporation
Private equity flows into Africa have increased at a rate of 40% annually since 2011, making Africa the region with the fastest growing private equity market globally, according to German Vegarra, IFC Africa’s Head of Industry.

The high growth rate of Africa’s private equity market is expected to continue for, at least, another decade, says Vegarra.

According to Vegarra, IFC’s returns on private equity investments in Africa, particularly in the agribusiness and food sectors, have delivered returns in excess of 20% annually.

Africa’s private equity landscape is presently dominated by foreign firms. As much of 80% of private equity funds currently invested in Africa are from foreign firms, Vegarra says.

Vegarra says that the hottest sectors for private equity investment in Africa include fast-moving consumer goods (FMCG). FMCG is a strong play on Africa’s rapid urbanization and young population.

Strategic sales continues to remain the primary exit route taken by private equity firms for their stakes in African companies.

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