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Why Africa Remains Ripe for Private Equity
Report

Why Africa Remains Ripe for Private Equity

Patrick Dupoux, Marc Becker, Tawfik Hammoud and Seddik El Fihri
Boston Consulting Group, 2016
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Editorial Rating

8

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  • Innovative
  • Overview

Recommendation

Private equity capital in Africa grew spectacularly from about $1 billion in the early 1990s to more than $30 billion in 2016. Some analysts fear an overheated market arising from greater numbers of investors competing for the same assets. At the same time, new markets are proliferating, making the region a continuing fertile zone for successful investments. This intriguing, well-researched look at private equity investing in Africa by professionals at the Boston Consulting Group presents sound guidelines for considering evolving opportunities. getAbstract recommends this expert article to fund managers and their investors.

Summary

Since about 2006, private equity investors – including endowments, pension funds and insurance companies – have been herding toward opportunities in Africa in search of profitable investments. To a large extent, these investors have followed the same strategy: becoming minority stakeholders in large, well-established businesses with solid earnings and continued growth potential. Examples of such targets are banks, utilities and commodities firms. Geographically, over the period from 2007 to 2015, activity has expanded from a concentration in South Africa to investments in ...

About the Authors

Patrick Dupoux et al. are professionals with the Boston Consulting Group.

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