Africa Records 530 Private Capital Deals In 2025

Africa has outperformed global private capital trends, with deal activity expanding by eight per cent year-on-year to 530 transactions, making it the only global region to record growth in deal volume
The African Private Capital Association revealed this in its 2025 Private Capital Activity in Africa report, showing that Africa outperformed global private capital trends despite a challenging global environment.

Deal activity on the continent expanded by eight per cent year-on-year (YoY) to 530 transactions, making Africa the only global region to record growth in deal volume. The year also marked one of Africa’s strongest exit cycles on record, signalling improving liquidity pathways and a steadily maturing investment ecosystem, even as fundraising moderated in line with global headwinds.

The report showed that $5.1 billion was invested across 530 deals, making Africa the only global region to record deal volume growth in 2025, while global deal volumes fell by seven per cent. Africa recorded 81 exits in 2025, up 27 per cent YoY, marking the second highest exit volume on record.

Private debt gained momentum, with deal volume rising 57 per cent YoY supported by greater use of venture debt. The asset class is now firmly established alongside private equity and venture capital as a key source of financing on the continent.

Financials continued to drive activity, reflecting ongoing demand for Fintech which accounted for 82 per cent of all transactions in the sector. The Information Sector was the second most active sector with investments targeting the finance, healthcare, retail and logistics sectors.

Southern remained the most active region, while East Africa and North Africa were strong performers, supported respectively by the growth in Energy and Information Technology investments.

Africa’s exit market strengthened in 2025 as fund managers prioritised liquidity. Exit volumes rose 27 per cent YoY to 81 transactions, the second highest- level on record. This momentum stood in contrast to global markets, where exit activity declined by 15 per cent over the same period.

Domestic capital was a key source of liquidity, representing 68 per cent of private capital acquisitions. International buyers accounted for the remaining 32 per cent, led by Asian strategic acquirers seeking to expand or deepen their presence in African markets.

Fundraising moderated in 2025 as liquidity pressures persisted globally. A total of $2.7 billion was raised during the year, reflecting a 34 per cent YoY decline in line with broader market headwinds. Development finance institutions continued to anchor the market, accounting for 64 per cent of all commitments.

Domestic capital continued to deepen. African institutional investors contributed 21 per cent of total commitments, led by sovereign wealth funds and pension funds whose allocations to private capital have expanded steadily in recent years. This growing participation highlights a structural shift toward locally sourced capital, even as overall fundraising conditions remained challenging.

The chief executive officer, AVCA, Abi Mustapha-Maduakor 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.”