Private Equity narrows Africa’s infrastructure gap

Nov 29, 2016

Private Equity investment in infrastructure has been growing over the past decade.

Private Equity is contributing to narrowing Africa's infrastructure gap, according to the SAVCA’s 2016 Private Equity Industry Performance Survey.

It found that about 14.5 per cent of the R165.3 billion (€11.2 billion) in assets under management in Southern Africa in 2015 are from funds with a dedicated infrastructure mandate.

This marks an improvement on the 7.6 per cent allocated the previous year.

Private Equity investment in infrastructure has been growing over the past decade, according to SAVCA’s chief executive Erika van der Merwe, who spoke with Africa Capital Digest: "Investment into African infrastructure offers compelling exposure to African growth, while simultaneously helping to drive that growth."

She added: "Unlike performances in other world regions, infrastructure assets in Africa continue to offer private equity-style returns, and moreover enable private equity to invest in scale on a continent where there are limited investment opportunities of sufficient size."

Investments from international private equity in sub-Saharan Africa has grown five-fold between 2008 and 2015 to reach $12 billion, according to figures from the Overseas Development Institute.ADNFCR-2976-ID-801829073-ADNFCR