West Africa recorded $10.2bln in private equity transactions

Africa Link Special Reports

(Ecofin Agency) - West Africa recorded $10.2 billion in private equity transactions between 2014 and 2019, ahead of all other African regions. Overall, the continent had 1,046 PE transactions over the period for an amount of $25.3 billion, according to the African Private Equity and Venture Capital Association (AVCA).

In 2019 alone, the value of such transactions reached $3.9 billion, a record level since 2016. The private equity firm Actis contributed to almost half of the amount with closing at $1.2 billion. In West Africa, Nigeria accounted for 68% of the value of transactions and 55% of the number of transactions. This is motivated by average GDP growth of 2.3% over the period, in addition to the strategies implemented by the Nigerian authorities to attract more investors.

Good performances were also recorded by Ghana and Côte d'Ivoire. According to AVCA, the government of Ghana continues to deploy measures aiming at improving the business environment. Similarly, the African Development Bank estimates that GDP growth in Côte d'Ivoire was 7.4% in 2018 and 2019, and the figure is expected to remain above 7.0% in 2020.