South Africa losing buyout allure to fast-growing Sub-Saharan African rivals

The Carlyle Group, the world’s second-largest manager of alternative investments, invested $147 million for an 18 percent stake in Nigeria’s Diamond Bank.

South Africa is no longer the destination of choice for private equity investors seeking to tap returns on the continent.

Buyout firms are increasingly targeting markets such as Kenya and Nigeria, Africa’s largest economy, where expansion this year is forecast by the International Monetary Fund to be more than double that of South Africa.

“Almost all the growth is outside South Africa’s borders,” Andrew Dewar, managing partner of Johannesburg-based Rockwood Private Equity (Pty) Ltd., which was spun out of Barclays Africa Group Ltd. in 2013, said in an interview on Feb. 13. “The shift from South Africa to the rest of Africa also means the way exits happen will change. You could use listings in London if you get to scale in Africa.”

Read more: South Africa Losing Buyout Allure to Fast-Growing Rivals – Bloomberg Business.