The report finds that African private capital activity showed notable resilience in 2024, marked by increased participation from African LPs, continued reliance on proven sectors like Consumer Staples and Financials, and an increase in exit volumes. After a turbulent period, 2024 also brought a moderately favourable environment for dealmaking and capital deployment.

In 2024, African private capital fundraising more than doubled to US$4.0 billion, representing the third highest final close value on the continent in the last decade. Infrastructure and private equity funds led fundraising activity, each making up 30% of total capital raised. Development finance institutions (DFIs) were the biggest contributors, committing US$1.4 billion, amounting to 42% of the total. At the same time, domestic investor participation grew significantly, with commitments from African pension funds, insurers, and corporates increasing 3.7 times—from US$171 million in 2022 to US$639 million in 2024. This marks a growing confidence in Africa's long-term prospects and the impact of blended finance and co-investment models in mobilising local capital.

The investment landscape in Africa saw an 8% year-on-year increase in volume as the continent recorded 485 private capital deals in 2024. While total deal value declined slightly to US$5.5 billion (-7% YoY), this reflects investors' growing preference for smaller, more strategic deal sizes amid macroeconomic uncertainty. Private Equity experienced a notable resurgence with deal volume surging by 51% year-on-year, reaching its highest level in over a decade. Financials remained the most active sector led by deal value, accounting for 23% of total deal volumes and 33% of deal values, while Consumer Staples demonstrated growth with deal volume increasing 67% year-on-year and values doubling. Regionally, Southern Africa recorded the highest deal volume (129 deals), followed by West Africa (105), East Africa (99), and North Africa (77).

At the close of 2024, Africa-focused fund managers held an estimated US$10.3 billion in dry powder, equal to 36% of total capital commitments secured between 2018 and 2024. At the prevailing deployment rate of US$4.9 billion annually, these reserves provide roughly two years of runway, highlighting the need for continued fundraising momentum. By strategy, Private Equity funds (which control 35% of the total) and Infrastructure funds (30%) dominate Africa's undeployed reserves, while Private Debt and Venture Capital account for 18% and 12% respectively.

Exit activity rose by 47%, with 63 exits recorded across Africa in 2024, exceeding pre-pandemic levels. This trend reflects delayed exits by investors in anticipation for a more favourable economic climate following disruptions caused by the pandemic. Additionally, heightened pressure to return capital to Limited Partners (LPs) and demonstrate liquidity contributed to the uptick of exits in 2024.

Abi Mustapha-Maduakor, CEO of AVCA, said:

"The rise of African institutional investors, growing infrastructure allocation, and the rebound in exits all point to a deepening and maturing private capital market in Africa. Despite a complex global environment, the ecosystem is adapting—pursuing smaller deal sizes, strengthening domestic capital mobilisation, and driving long-term value creation across sectors. These shifts reinforce the role of private capital in unlocking sustainable growth across the continent."