Africa recorded 530 private capital transactions in 2025, representing an 8% year-on-year increase, making it the only global region to post growth in deal volume despite a slowdown in global markets.
This was revealed in the 2025 Private Capital Activity in Africa Report released by the African Private Capital Association (AVCA), which showed that the continent outperformed global private capital trends even amid a challenging investment climate.
According to the report, $5.1 billion was invested across the 530 deals in 2025, while global deal volumes declined by seven per cent during the same period.
The year also marked one of Africa’s strongest exit cycles on record, reflecting improving liquidity pathways and the gradual maturation of the continent’s private capital ecosystem.
Exit activity rose significantly, with 81 exits recorded in 2025, representing a 27 per cent year-on-year increase and the second-highest exit volume ever recorded in Africa’s private capital market.
The report further indicated that private debt gained traction, with deal volume rising 57 per cent year-on-year, driven largely by the increasing adoption of venture debt. The asset class has now become firmly established alongside private equity and venture capital as a key source of financing across the continent.
Sector-wise, the financial services sector remained the most active, driven by continued demand for fintech solutions, which accounted for 82 per cent of all transactions.
The information technology sector ranked second in activity, with investments also targeting finance, healthcare, retail and logistics.
Regionally, Southern Africa remained the most active market, while East Africa and North Africa also recorded strong performances, supported by growth in energy and information technology investments.
Africa’s exit market strengthened in 2025 as fund managers increasingly prioritised liquidity. Exit volumes rose 27 per cent to 81 transactions, in contrast to global markets where exit activity declined by 15 per cent.
Domestic capital played a major role in sustaining deal activity, accounting for 68 per cent of private capital acquisitions, while international buyers made up the remaining 32 per cent, led largely by Asian strategic investors seeking to expand their presence in African markets.
However, fundraising slowed during the year as global liquidity pressures persisted. A total of $2.7 billion was raised in 2025, representing a 34 per cent year-on-year decline, in line with broader global market headwinds.
Development finance institutions continued to play a critical role in the ecosystem, accounting for 64 per cent of all commitments.
Domestic participation also deepened, with African institutional investors accounting for 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.
The chief executive officer of African Private Capital Association, Abi Mustapha-Maduakor, said the report underscores the resilience of Africa’s investment ecosystem despite global uncertainties.
“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,” she said.
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