Africa private capital market growth hits $5.1bn as deals and exits rise despite global downturn, AVCA report shows
The African Private Capital Association has reported strong Africa private capital market growth, with investment activity reaching $5.1bn in 2025 despite a challenging global environment.
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The industry body disclosed this in its latest report, revealing that Africa recorded 530 deals during the year, marking an 8 per cent increase and making it the only region globally to post growth in deal volume.
The report described the performance as a powerful signal of resilience, as global deal activity declined by 7 per cent within the same period.
Exit transactions also surged, rising by 27 per cent to 81 deals, indicating improved liquidity across the continent’s investment landscape.
According to AVCA, the surge in exits contrasts sharply with a 15 per cent global decline, highlighting Africa’s strengthening private capital ecosystem.
The report noted that private debt emerged as a major financing tool, with deal activity rising by 57 per cent, driven by increased adoption of venture debt structures.
Sector analysis showed that financial services led investment activity, with fintech accounting for 82 per cent of deals within the sector.
The information technology sector followed closely, attracting investments across finance, healthcare, retail and logistics.
Regionally, Southern Africa remained the most active, while East and North Africa recorded strong performance, supported by growth in energy and technology investments.
Despite the gains, fundraising declined by 34 per cent year-on-year to $2.7bn, reflecting ongoing global liquidity pressures.
However, domestic capital deepened significantly, with local investors accounting for 68 per cent of exits and contributing 21 per cent of total fundraising commitments.
Chief Executive Officer of AVCA, Abi Mustapha-Maduakor, said the figures show Africa is gradually decoupling from global economic headwinds.
“This year’s report tells a clear story: Africa is decoupling from the global slowdown,” Mustapha-Maduakor said.
She added that stronger exit performance and growing participation from domestic institutional investors signal a maturing investment environment.
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The report concludes that Africa’s private capital market is entering a new phase of stability and expansion, driven by local capital, improved liquidity, and sustained investor confidence.
