While almost half of global endowments and foundations are planing to increase their private equity exposure in 2017, institutions in Southern Africa are still lagging behind their peers, Africa Global Funds has learned.
PE Industry News
One of the most underutilised opportunities to drive economic growth in South Africa is through the investment of private equity, according to Paul Boynton, CEO of Old Mutual Alternative Investments.
Nigeria has the capability to become one of the most significant leaders in Africa’s financial technology innovation, according to Irrational Innovations, a venture capital fund focused on fintech in Africa.
Taaleri, a Finnish private equity fund and financial services group, has announced plans to invest Sh10bn ($98m) in East and South African real estate projects, Business Daily reported.
Village Capital has partnered with Schooner Africa Fund to launch the Africa Investment Marketplace that will invest between $100k and $500k in early stage agritech startups in East Africa.
Following the $2.2m investment put up by Proparco and I&P in August 2016, Enko Education has opened its first international school in South Africa - Enko Ferndale International School.
Private equity investment in African infrastructure has been an emerging theme over the past decade, according to Erika van der Merwe, CEO of the Southern African Venture Capital and Private Equity Association (SAVCA).
The Private Equity Women Investor Network (PEWIN), a global networking organization for senior women in private equity, has expanded to Nigeria, following the formal launch of PEWIN Africa earlier in the year, in South Africa.
The current investment cycle has identified increased investor interest in Morocco, which remains the leading country for investment in North Africa, according to the African Private Equity and Venture Capital Association (AVCA).
South African private equity industry delivered a 10-year internal rate of return (IRR) of 18.1% at the end of June 2016, down from 19% reported in the previous quarter, ending March 31, 2016.
Africa's financial environment is as competitive as other developing and high income regions in some countries, but access to finance remains a challenge, according to the Institute of Chartered Accountants in England and Wales (ICAEW).
The Islamic Corporation for the Development of the Private Sector (ICD) and the Deposit and Consignments Fund (DCF) of Gabon have agreed to launch a private equity fund for SMEs in Gabon and Central Africa.
Actis Africa Real Estate Fund 3 (ARE3) is looking for investment opportunities across Africa including in Kenya and Mozambique, Africa Global Funds has learned.
Of the total $1.1bn private equity fund closures in 2016 H1, 46% were dedicated exclusively to real estate opportunities in Africa, according to the inaugural 2016 H1 AVCA report.