Business
Africa grows, however East Africa tops continent in attracting private equity funds
Rising business confidence and consumer demand have lifted private equity (PE) fund executives’ appetite in East African economies to an all-time high, shrugging off rising concern over the level of political risk.
The East African Community is this year expected to surpass the US$200 million worth of deals pumped into the region in 2011.
Analysts say the increased inflows could help push huge infrastructure projects in a new financing plan.
A new survey by Deloitte Consulting shows in comparison with South Africa and West Africa, PE executives polled cited East Africa’s higher growth potential, more business confidence, less exposure to global turmoil and the benefits of a strong regional trading bloc as key lures.
As such, more private equity firms are set to open shop in East Africa in 2012, attracted also by a growing young and urban population.
New East Africa-focused funds are targeting high-growth small and medium enterprises in consumer-driven sectors.
