A lot has been written about the potential of the African consumer but there’s not been exactly a flood of deals to demonstrate investor interest.
Well, here’s one: the Abraaj group, one of Africa’s larger private equity groups, has snapped up Fan Milk International of Ghana. It’s a vote of confidence for the west African country, which has seen consistently high growth over the last few years, and for the region in general. Continue reading »
Private equity in Africa is on the up – so it was only a matter of time before investors started looking at the more extreme end of the market: distressed assets. Funds in South Africa are showing a keen interest in what is a new area, buoyed by a new law that helps to rescue ailing companies from the brink of collapse.
But are South African dealmakers fully equipped to handle what is considered to be a highly risky asset class? Continue reading »
East Africa’s largest private equity fund Catalyst Principal Partners reached its final close last week, at $125m, writes Katrina Manson. It marks a growing pot of money chasing deals in the region whose nascent private equity industry has little record but is keen to make the most of a dearth of capital for a growth market of 200m people. Continue reading »
With Africa playing catch-up on developed countries and other emerging markets, it’s easy to focus on the infrastructure projects or the big consumer market plays. And at the other end of the spectrum, for (really) small investments, there’s microfinance.
That leaves something of a “forgotten middle”: African SMEs with the potential for high growth but are not big enough to get on the radar of most western investors, and have trouble getting lending from local banks. Continue reading »