Record year for African private equity

Feb 12, 2014

Four billion dollars' worth of private equity was dealt in Africa in 2013, four times more than the 2012 amount, Privateequityafrica.com reports.

Four billion dollars' worth of private
equity
was dealt in Africa in 2013, four times more than the 2012 amount, Privateequityafrica.com reports.

Most was invested in the industrial (20 per cent) and business services sectors (19 per cent). Other favoured industries included food and agriculture (18 per cent) and consumer and retail space (11 per cent).

Two key deals drove up the total: a US$1.5 billion investment in Petrobras Africa, the Nigerian oil and gas exploration company, and a US$1.03 billion investment in Nigerian telecommunication companies.

However, these were only the two most significant deals of the year out of more than 60.

Actis, for instance, committed a total of US$900 million over ten deals including nearly US$500 million in two Moroccan utility services companies and US$200 million in the Cameroon national energy provider.

Last year was the most successful year for private equity in Africa since 2007, when US$7.2 billion was dealt.


Regional private equity deals were also on the increase.

Sub-Saharan Africa attracted US$1.6 billion of the continent's deals last year, the highest since 2009, according to Reuters.

Investors favoured the natural resources and consumer spending in the region.

East Africa was also popular with investors, with nearly a third of all deals concluded there thanks to the recent discovery of gas and hydrocarbon.ADNFCR-2976-ID-801692572-ADNFCR