US pension funds embrace private equity in Africa

Adiba Ighodaro, Partner, Investor Development, Actis. Credit:

That Missouri’s 111,000 retired state workers receive some of their pensions thanks to Africa consumers may seem unlikely.

But while African pension funds still tend to err on the side of caution and, for the most part, avoid investing in domestic private equity funds, US pension funds are embracing private equity on the continent.

As pension funds the world over struggle to meet their responsibilities, many are considering a larger exposure to African economies to tap into growth of, on average, close to 5 per cent a year. Some sectors, particularly those serving the nascent middle classes, have been growing much faster, at up to 20 per cent a year.

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