Private equity investment in Africa totals $ 3 billion – 2011
Private equity investment into Africa more than tripled in 2011 to reach US $3 billion, according to the Chief Economist of the African Development Bank (AfDB).
The figure is even seen rising in the coming years as the AfDB has observed that investors are moving into consumer products and services on the continent instead of the traditional targets of natural resources, infrastructure and renewable energy.
In his latest blog, July 12, 2012, Dr Mthuli Ncube, said “private equity investors closed US$3 billion worth of deals in Africa, up from US$1.5 billion in 2010.”
As a result of the increased investments, sub-Saharan Africa now accounts for 6 percent of total emerging markets private equity investment, double the 2007 share of 3 percent, the economist indicated.
Currently, approximately 200 equity investors are actively involved in the African market, according to Dr Ncube.
He writes “Beyond traditional development institutions and institutional investors, more global frontier investors are exploring opportunities in Africa, seeking to diversify risk, improve efficiency and unlock value.”
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