African private equity deals hit seven-year high

US private equity firm KKR made its maiden investment in Africa in 2014, spending $200M on a stake in an Ethiopian flower farm.

The value of private equity deals in Africa reached their second-highest level on record in 2014 as population growth and an increasingly stable political climate helped drive international interest in the continent.

The total value of deals in Africa last year was $8.1bn, just short of the $8.3bn high recorded in 2007, according to figures from the African Private Equity and Venture Capital Association (AVCA).

Private equity veteran Marleen Groen estimated that more than a fifth of private equity companies are “now expressing serious interest in investing in Africa”.

“[Africa] offers investors less competitive investments in a diversified market where many countries show ongoing GDP growth of over 7 per cent per annum,” she said.

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