Finance: Equity investors find Nigeria more attractive than South Africa, Kenya
32% of total African-based PE investments between 2012 and 2017 happened in Nigeria.
Foreign equity investors have found Nigeria as the most attractive investment destination in Africa with $7.8 billion investments in the last five years. This amount is more than total equity investments to South Africa and Kenya.
This information was deduced from data obtained from Africa Private Equity and Venture Capital Association (AVCA). About 32 percent of all private equity investment deals that took place between 2012 and 2017 in Africa are situated in companies operating in Nigeria, and majority are tech startups.
Within this period, Nigeria recorded a total of 112.14 deal amounting to $7.8 billion. South Africa was able to rake $2.8 billion while Kenya perfected a deal worth $1.17 billion. However, the volume of the deal by South Africa (207.32) surpassed Nigeria’s 112.14 and Kenya’s 100.8 private equity deals.
Ayo Akinwumi of FSDH said: “Nigeria attracted the highest private equity deals in the continent as a result of potentials that investors see in the country.”
“It has a large market size, considering its large and young population, despite the risk, investors see the opportunity available in the diverse sectors of the economy and they take no chance in exploring from the fortune.”
A total number of a deal in Africa was 953 in volume and valued at $24.4 billion between 2012 and 2017.
Major factors that influenced investments within this period were consumer base, technology advancement, friendly investment climate and good economic outlook.
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