Where are equity firms, managing funds over $1bn, investing in Sub-Saharan Africa   

16 October 2018 : According to a research conducted by Asoko Insight and Africa Capital Digest, there are currently about 207 private equity investment firms in Sub-Saharan Africa with some of them managing funds as massive as $1 billion. These firms include Brait, Development Partners International, Helios Investment and Old Mutual Capital. There are quite a few which manage funds between $500 million and $1 billion. Moreover, about 60 of them which manage between $100 million to $500 million within Sub-Saharan Africa. Although, most of the firms in the region ( approximately 71 ) manage less than $100 million.


Which are the most tempting sectors and regions in terms of investments?

According to the research, South Africa seems to be luring the equity firms the most, mainly because of its “relative stability” and amicable relations with foreign investors. About 39% of the total firms were set up in South Africa, while Kenya follows closely, boasting of 14% of the total firms being set up in the country. Nigeria comes in third with 13%. 


In terms of sectors, financial services gets the most attention from the firms, followed by the consumer space. Healthcare, agribusiness, and the technology sectors also attract prestigious investments.

The report also states that US fast food giant Burger King is seeking to expand in the Sub Saharan Africa, as it strongly believes that the region has massive growth potential 

Development Partners International, which is one of the biggest investors in Sub-Saharan Africa with over $1 billion of funds under management, has diversified its investment portfolio, directing its funds into consumer services, education, healthcare, and the financial sector. While another firm Emerging Capital Partners, managing $1 billion of funds is putting their money on consumer services, finance, infrastructure , industrial, manufacturing and technology as part of its investment strategy in the region. While there are also firms like Métier, possessing funs over $500 million under management, are focussing on agribusiness, consumer and education sector.

Reporting for EasyKobo on Tuesday ,16 October 2018 in Lagos, Nigeria

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