Investors Advocate Increased Capital In Critical Sectors To Drive Economic Growth

The African Private Capital Association (AVCA) has emphasised the need for increased capital deployment in essential sectors to stimulate economic growth and development.

This call was made during the ongoing 21st Annual Africa Venture Capital Association Conference in Lagos, themed “Bold Moves: Powering 10x in Africa,” which runs from April 28 to May 2, 2025.

The event gathered industry leaders from various investment firms to discuss the current economic climate and identify key sectors that are poised for growth.

The CEO of AVCA, Abi Mustapha-Maduakor, stated that holding the conference in Nigeria comes at an opportune time. She noted that the country has experienced depressed deal activity over the past three years due to macroeconomic pressures and geopolitical factors affecting many nations in Africa.

However, she added that , “we have seen stability in the exchange rate for a sustained period. Exit activity is beginning to occur in Nigeria, and investors who had previously not invested in the country are now starting to do so.”

Mustapha-Maduakor emphasised that, ‘the time is now for capital to start coming to Nigeria,’ expressing optimism about the investment landscape.

The founding partner at Ventures Platform, Kola Aina urged local investors to act swiftly and invest in sectors that could benefit from Nigeria’s recovery.

The co-managing director at African Infrastructure Investment Managers (AIIM), Olusola Lawson, highlighted infrastructure, energy, telecommunications, and logistics as critical sectors for investment.

Lawson shared insights into AIIM’s $3.2 billion infrastructure portfolio, underscoring the firm’s commitment to long-term investments in Nigeria despite ongoing economic challenges.

The managing partner at Verod, Danladi Verheijen spoke about the role of private equity in driving growth in Nigeria.  He stated that, ‘while the country faces challenges, sectors such as technology and consumer goods present significant opportunities for long-term-focused investors.’ Verheijen encouraged more local investors to engage in the country’s recovery by concentrating on these promising sectors.

The non-executive director at British International Investment (BII), Andrew Alli reaffirmed BII’s commitment to Nigeria, where it has invested $700 million across sectors including financial services, agribusiness, and infrastructure. He expressed optimism about Nigeria’s future and urged investors to remain confident despite the country’s recent economic volatility.

Partner at Alterra Capital Partners, Genevieve Sangudi emphasised the importance of resilient investments, particularly in emerging sectors like artificial intelligence (AI). She pointed out that, despite current challenges, Nigeria’s potential remains strong, and investors should focus on opportunities that promise long-term growth and sustainable returns.

In a recent development, AVCA and the Private Equity and Venture Capital Association of Nigeria announced a strategic merger aimed at strengthening Nigeria’s private capital ecosystem.

This merger combines AVCA’s global reach with PEVCA’s local networks and is expected to drive new investment opportunities while enhancing sub-regional and continent-wide growth.

Additionally, AVCA revealed that the African continent secured $3.6 billion in venture capital funding in 2024, which includes $1 billion from venture debt.