Driven by a combination of higher commodity prices, the relaxing of lockdowns and a recovery in global trade, Africa has had some success in overcoming the recession provoked by the coronavirus pandemic and returned to growth in 2021.
Driven by a combination of higher commodity prices, the relaxing of lockdowns and a recovery in global trade, Africa has had some success in overcoming the recession provoked by the coronavirus pandemic and returned to growth in 2021.
Economic zones in Africa have had a significant impact on trade volumes across the continent, as well as on job creation and foreign direct investment inflows.
The African PE industry has become increasingly complex and diverse, with the arrival of global institutional investors in recent years paving the way for some of the world’s largest firms to enter the market. Between 2014 and 2019 the total value of the 1053 PE deals reported in Africa reached $25.4bn. While deal volumes have maintained an upward trend, their value has gradually eased, suggesting growing investor interest but smaller deal sizes. Moreover, in addition to consumer-driven industries, PE fund managers have diversified their strategies to invest across a variety of sectors such as IT, renewable energy, infrastructure and real estate.
Which factors contributed to the growth of private equity in Africa before the pandemic?
As the global economy faces a significant downturn, funds in Egypt are looking to bolster the start-up ecosystem to ensure innovative firms are supported.
Several positive macro-economic developments gave the Egyptian economy a boost in 2019.
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