How To Get Private Equity Exits in Africa Right

Private equity (PE) as an asset class has received reasonable prominence in Africa in recent times. New records are being set both at the levels of fund raising and sector diversity of investments. Africa is becoming increasingly investor-friendly.

The attraction of PE to Africa is driven largely by many factors such as: the huge market size – Africa is home to over 1 billion people; relatively young population – about 60% are below 40 years of age; favorable demographics – rising middle class, increasing urbanization, increasing disposable income etc; improved democratic rule and governance, increasing public sector reforms, reducing incidences of civil unrests and wars etc and the mobile technology revolution in Africa driving increased efficiencies, productivity and reducing cost of doing business.

In a continent with weak infrastructure (outside of South Africa), mobile technology applications have been successfully implemented across several consumer facing sectors such as financial services, healthcare, education to drive penetration, financial inclusion, communication, logistics and process efficiency. These factors have contributed greatly to increased investors’ interest in Africa

Read more: How To Get Private Equity Exits in Africa Right – Blog KPMG Africa.