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Zawya
23-04-2025
- Business
- Zawya
Fund managers double private capital in Africa to $4bln
Fund managers focused on raising private capital for African companies more than doubled their funds to $4 billion in 2024, the third highest value in 10 years. Most of the funds (42 percent) came from development finance institutions (DFIs), demonstrating the continent's growing appeal to investors despite its macroeconomic headwinds. The amount, which represents a 110.52 percent increase from $1.9 billion in 2023, was raised in final closes across 22 funds, boosted by a resurgence in commitments to infrastructure and private equity funds, according to the latest study by the African Private Equity and Venture Capital Association Ltd (AVCA). The African Private Capital Activity report, dated April 2025, shows that DFIs contributed 42 percent of the $4 billion, while African investors increased their commitments between 2022 and 2024, growing their share from 14 percent to 19 percent. The rebound in private capital activity on the continent pushed the value of fundraising above the $2.7 billion annual average of the previous five years (2019–2023) and ended two consecutive years of decline.'Steady commitments into private equity funds further bolstered fundraising values as the asset class, alongside Infrastructure funds, each accounted for 30 percent of the total value of final closed funds,' the report says. Southern Africa tops Regionally, Southern Africa continued to stand out as a top destination for investments in Africa, attracting $2 billion in private capital invested across 129 deals, followed by West Africa (105), East Africa (99), and North Africa (77). The financial sector remained a key pillar of investment activity across the continent in 2024, accounting for 23 percent of total deal volume and 33 percent of deal value. Overall, deal volume within the financial sector grew by 18 percent, driven by a notable 31 percent increase in financial services deals.'Investors gravitated towards companies offering digital financial solutions, capitalising on Africa's dynamic start-up ecosystem to pursue opportunities deepening financial inclusion in the continent with the help of technology,' the report says.'While investments in traditional banking and insurance services have been on a downward trend since the record highs of 2022, this decline in deal volume did not translate into a fall in value.' The report notes that the total investment value in banking and insurance companies matched the 2022 peak, buoyed by the successful completion of another major funding round for TymeBank, a digital lender that achieved unicorn status in 2024, with deal value in the sector climbing 29 percent year-on-year. Consumer staples showed tremendous growth, with deal values growing to $200 million in 2024, from $100 million in 2023, driven by increased volume of investments in food-producing and processing companies in Southern and East Africa. According to the report, the average private capital deal size declined to $15.2 million in 2024, from $18.2 million in 2023, while the average holding period for the investments increased slightly to 6.6 years, from 6.3 years in the same period. Large funds In 2024, there was a strong concentration of commitments in large funds (above $250 million), which propped up overall final close values amid a stagnation in commitments within small funds (below $100 million). Large funds accounted for 66 percent of the total final close values, the largest share since 2021, driven by a 2.8 fold increase in the value of upper midsize funds ($250-500 million), while the return of supersize funds (above $500 million) in 2024 made a significant contribution to overall fundraising values. According to the report, fund managers navigated the African investment terrain cautiously following a prolonged period of economic volatility.'2024 brought a partial exhale for Africa's private capital industry,' the report says. 'While some markets in Africa emerged from the turbulence and showed signs of stability, others remained caught in the crosswinds of persistent macroeconomic challenges that have defined Africa's economic landscape in recent years.'South Africa and Kenya stood out for their relative stability, holding steady even as they navigated political disruptions (nationwide protests in Kenya and the general election in South Africa). Fund managers raised $4.5 billion and $4.4 billion in 2015 and 2021, respectively. Compared to global fundraising outcomes, where most regions experienced a pullback in commitments, Africa posted a 2.2 times year-on-year surge in final close values in 2024. According to the report, private equity shook off years of fluctuating activity to record a 51 percent year-on-year surge in deal volume and a 25 percent increase in deal value, driven by increased investments in both growth capital and buyout opportunities. Venture capital On the other hand, private debt investments maintained the momentum, which began in 2022, with deal volume registering a modest 10 percent increase and deal values climbing by 36 percent as fund managers gravitated towards opportunities within the small and medium-sized enterprises. In 2024, venture capital entered its second and third consecutive years of decline by deal volume and value, respectively, as the persistent headwinds of 2022 continued to weigh on the asset class. Despite the decline in investment, venture capital maintained its stronghold as the leading asset class in Africa, accounting for 58 percent of total deal volume, and 37 percent of total deal value. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
09-04-2025
- Business
- Zawya
Taxes, high octane politics spook venture capital investors in East Africa
East Africa recorded subdued venture capital (VC) activity in 2024, weighed down by a volatile sociopolitical climate and increased business taxes in Kenya. Latest data by the African Private Equity and Venture Capital Association Ltd (AVCA) shows that the region recorded 112 VC deals valued at $472 million, from 114 deals valued at $480 million in 2023. The pan-African private capital lobby says in its report Venture Capital in Africa report dated March 2025 that a volatile sociopolitical climate in Kenya and regulatory changes related to the proposed Finance Bill 2024 (including a rise in capital gains Tax from five percent to 15 percent and a new six percent digital services tax) led to a 7.6 percent decline in new business registrations, weighing heavily on deals flow. The report says while East Africa ranked second by volume in 2024, largely due to the padding of debt valued at $114 million, the region's overall performance was somewhat 'disappointing.'The region ranked fifth by deal value, partly due to the absence of super-sized deals, according to the report. Super-sized deals are those equal to or exceeding $100 million. The report flags an 88 percent drop in venture funding to Rwanda, which weighed on deal value, 'compared to its exceptionally strong 2023, which had included two deals valued at over $20 million.'The report cites Tanzania as a standout performer during the period, with its share of East Africa's capital rising to nine percent from under one percent in 2023. According to the report, Tanzania's improved performance in terms of VC deals reflects the government's proactive support for start-ups, including a proposed Start-up Policy and Act in 2023, regulatory and tax reforms in 2024, and plans for a Tsh100 billion ($37.13 million) Tanzania Venture Capital Fund in 2025. Read: Why East African companies prefer private equity, venture capital fundraising to IPOsSeychelles also emerged as a hub for venture capital, particularly in the blockchain and fintech sectors, reflecting its growing appeal to digital-first investors and start-ups, the report says. But ti notes that with tech penetration at 71 percent, East Africa has a strong but relatively smaller technology footprint, compared with other parts of Africa, which has shaped regional investment patterns, with non-tech funding in 2024 being concentrated in consumer-oriented sectors — consumer discretionary (durables and apparel) and consumer staples (food and beverage) companies, which received 61 percent of investment. Kenya dropped to the fourth and fifth position from third position in terms of the top 10 investment destinations by VC deal volume and value in 2024 respectivelyFor instance, Kenya ranked fourth with 60 VC deals, after Nigeria (70), South Africa (65) and Egypt (64). On the other hand, Nairobi ranked fifth with VC deals valued $318 million after South Africa ($589 million), Nigeria ($417 million), HQ Outside Africa ($362 million) and Egypt ($353 million). West Africa topped the regions in deal volume for the fourth consecutive year. According to the report, financials have long stood as the titan of venture capital in Africa, consistently attracting the largest share of investment. Its dominance persisted into 2024, as financials remained the only sector to record annual growth in deal volume, inching up by two percent. Although total deal value contracted from $1.7 billion in 2023 to $1.5 billion, the sector still commanded a dominant 59 percent of overall venture funding in 2024—equivalent to nearly three out of every five dollars deployed across the continent. This impressive share marks a decade-long climb in the concentration of capital towards this sector (financial), from 23 percent (2015-2017), climbing to 32 percent (2018 to 2020) and later 50 percent (2021 to 2023). Although early-stage ventures focused on consumer financial services remain the mainstay, the banking sub-sector is steadily gaining traction. Read: A tough and rough year for East African startupsNot only did the volume of banking deals triple from just six in 2020 to 19 in 2024, but the average deal size also surged from $2.2 million to $26.4 million over the same period. This trend mirrors the global rise of digital-only banks, which have gained widespread adoption following their success in Europe. In 2024, African digital banks not only demonstrated strong regional appeal but also held their own on the global stage. Financials and utilities were once again frontrunners by both deal volume and value in Africa in 2024, reinforcing their perception as stable and high-growth sectors during economic uncertainty. More specifically, the financial sector cornered the venture debt market by volume with 25 transactions (42 percent of total deal count), while the Utilities sector led monetarily with transactions amounting to $367 million (39 percent of total deal value). Other sectors, including Consumer Discretionary & Staples (17 percent) and Industrials (12 percent), also received venture debt in 2024, but their share of the overall distribution was significantly smaller. Materials and Information Technology rounded out the list with one deal apiece, illustrating the diverse but narrowing footprint of venture debt across the continent's economic landscape. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Yahoo
21-02-2025
- Sport
- Yahoo
Professional volleyball is coming to the Pentagon
SIOUX FALLS, S.D. (KELO) — A professional volleyball league is heading to the Sanford Sports Complex for the first time ever. Ice racing set to return to Brant Lake The American Volleyball Coaches Association (AVCA) announced the addition of the Sanford Pentagon to the 2025 AVCA First Serve tournament. On Monday, Aug. 25, the AVCA will host a doubleheader at the Sanford Pentagon in Sioux Falls. 'This will be one of the biggest events we have ever hosted at the Sanford Pentagon as fans will see some the best volleyball teams in the country compete on Heritage Court,' said Jesse Smith, Sanford Sports vice president of operations, in a news release. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
