Africa recorded 530 private capital deals worth $5.1 billion in 2025, marking an 8% increase in deal volume year-on-year (YoY) and making the continent the only global region to grow amid a global decline in private investment, according to the African Private Capital Association (AVCA).

The year also saw 81 exits—a 27% rise YoY—signaling improving liquidity and a steadily maturing investment ecosystem, even as fundraising slowed 34% to $2.7 billion in line with global pressures.

Investment activity in Africa rose for the third consecutive year. While the total deal value edged slightly lower, fund managers focused increasingly on smaller mid-market opportunities, with deals in the $50–99 million range doubling as capital-intensive transactions became less frequent.

Private debt gained momentum, with deal volume rising 57% YoY, supported by growing use of venture debt. The asset class is now firmly established alongside private equity and venture capital as a core source of financing across the continent.

Financial services remained the most active sector, with fintech accounting for 82% of transactions, while information technology, healthcare, retail, and logistics also saw significant activity. Geographically, Southern Africa led deal activity, with East and North Africa performing strongly, supported by energy and IT investments.

Africa’s exit market strengthened even as global exits fell 15%. Trade buyers represented 38% of exits, while sponsor-to-sponsor transactions reached a record 26%, reflecting the growing depth of secondary markets. IPO activity improved modestly, with four listings during the year. Domestic investors provided 68% of acquisition liquidity, while international buyers—led by Asian strategic acquirers—made up the remaining 32%.

Fundraising declined due to global liquidity pressures, with development finance institutions anchoring 64% of commitments. Domestic institutional investors, including sovereign wealth and pension funds, contributed 21% of total commitments, reflecting a structural shift toward locally sourced capital.

Abi Mustapha-Maduakor, CEO of AVCA, said: “This year's report tells a clear story: Africa is decoupling from the global slowdown. Stronger exit performance, deeper participation from domestic institutional capital, and sustained commitments from development finance institutions all point to a maturing ecosystem. We expect this momentum to build further as capital providers increase their exposure to sectors driving Africa’s next phase of economic transformation.”