Private Equity investment reaches $5.3 billion in North Africa

Aug 20, 2015

There were 156 PE deals in North Africa over the 2007-2014 period.

North Africa private equity (PE) deal activity has remained relatively stable despite a challenging political and economic environment in recent years, according to new research by the African Private Equity and Venture Capital Association (AVCA).

It reported 156 PE deals in North Africa over the 2007-2014 period, carrying a reported value of $5.3 billion (€4.8 million) and a median deal size of $10 million.

Morocco, Egypt and Tunisia attracted the most deals, accounting for almost 90 per cent of all transactions in the region by volume and value. Morocco alone accounted for 39 per cent of deals in 2007-2014.

"North Africa is resilient as evidenced by PE investment activity in recent years as PE firms are leveraging their skills, networks and resources to identify and execute value creation strategies in portfolio companies," said AVCA chief executive Michelle Kathryn Essomé.

Ponmile Osibo, research analyst at AVCA added: "Deal volumes in North Africa have remained stable in recent years because of local PE firms’ continued appetite to invest in businesses, and the ability of small and medium-sized enterprises to successfully identify new export markets. We see this level of deal activity as continuing."

The association said that North African countries are enacting various reforms to stimulate economic growth and stabilise the political environment, while the recent fall in oil prices is further enabling non-oil exporting countries to improve trade balances - all of which will add further confidence to PE investors in the region.ADNFCR-2976-ID-801798142-ADNFCR