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Africa's Private Capital Attracts Global Investors

Africa's Private Capital Attracts Global Investors
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In 2024, private capital inflows into Africa surged to $4 billion—more than double the amount recorded the previous year and the third-highest annual total in the past decade, according to the African Private Capital Association (AVCA).
Africa’s private capital markets are roaring to life, defying global economic headwinds with an 8 percent year-on-year surge in deal volumes—the second-highest growth globally, according to 2024 data from the African Private Capital Association’s (AVCA) 2024 data..
This momentum is powered by the continent’s youthful population, rich green resources, and reform-minded leaders dismantling bureaucratic hurdles to welcome international investment.
But challenges remain. The African Development Bank notes that Africa’s GDP is projected to grow by 4.1 percent in 2025, yet its core economic engine—the small and medium-sized enterprises (SMEs), often called the “missing middle”—remains underfunded despite employing most of the workforce.
With firms like AVCA reporting an average investment horizon of 6.5 years, private equity capital is fueling fintech’s rapid growth and solar megaprojects that bring power to off-grid villages.
As BRICS ties strengthen and traditional aid slows, Africa’s combination of youth, natural resources, and digital enthusiasm is reshaping the global investment landscape
To understand the momentum behind Africa’s private capital boom, African Currents reached out to Lena Sene, the President and CEO of Developing Capital for Africa (DCA).
"Private capital is what I believe is what we need more than ever before. And they [investors] are showing their interests. If you look at the statistics, we see growth in both private equity and venture capital into the continent. Just within this one year, between 2024 and 2025, we have the numbers. So, I think it's very positive because this is what can generate employment [...]. It's three things [that makes lures global investors to Africa]. It's very simple. Young population - the young population that no other region has in the world. The young populations that can be trained and formed. The natural resources, we cannot ignore that. That we like it or not, the majority of the natural resources remaining on earth are in Africa. That is undeniable. You can close your eyes, look away, it's okay, it is not going to change. The new, more developed or more progressive governments that want to create an environment that attracts investors from around the world," Sene said.
To find out what else our guest had to say, tune in to the African Currents podcast, brought to you by Sputnik Africa.
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