Africa's Private Equity Promise And What It Can Deliver

The fundamental precept of Private Equity (PE) is to transform a company and improve it, thus allowing it to achieve its full capability by enhancing its operational structure. This strategically targets gross revenue and increases portfolio effectiveness thereby increasing the profitability of the company in question. As such, emerging markets have become a key opportunity for global investors.

Following the 2008 international financial crisis and credit crunch, PE firms have shifted towards emerging markets in search of growth. Back in 2008, Africa only accounted for a mere 4% of emerging market fundraising. It now accounts for over 10%. It is true that global macro interest has increasingly shifted back towards advanced economies in recent months, as emerging markets have suffered from weak economic and political environments.

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