There were 73 private market deals recorded across the continent in Q3 2024, including 39 deals with a combined disclosed value of $2.27 billion, according to a new Q3 2024 report by Stears.
- Equity dominated the investments as 75% of transactions included an equity component
- 71% being strictly equity-based, compared to
- 19% for debt
In terms of deals:
- Central Africa, the region with the fewest private capital deals, recorded the highest proportion of debt financing, with one-third of its transactions being debt-based – 10 percentage points higher than East Africa’s 23%
- Equity-focused deals were most prevalent in North and Southern Africa, where North Africa led in deals with an equity component (86%), and Southern Africa recorded the highest share of equity only transactions (79%).
According to the report:
- Financial services emerged as the most active sector in Q3 2024, accounting for one-third of all recorded private capital deals on the continent – nearly double the share of the next largest sector,
- Consumer goods (19%)
- Payments (29% of deals), and
- MSME lending (20%)
led the activity within the sector.
Meanwhile, in the financial technology sector, M2P Fintech, a banking-as-a-service provider, secured a significant $100 million in Series D funding led by Helios Investment Partners.
- Southern Africa led private market transactions in Q3 2024, accounting for 45% of recorded deals, followed closely by
- East Africa (41%), and
- West Africa (33%)
- Central Africa lagged significantly, contributing just 8% of transactions during the period.
South Africa and Kenya emerged as top performers in Q3 2024, each accounting for one-third of all private market deals.
In Southern Africa,
- South Africa led activity in Southern Africa, representing 73% of the region’s transactions, while
- Namibia played a smaller role in Southern Africa, contributing 5% of African deals and 12% of the region’s total
in East Africa,
- Kenya dominated East Africa with 80% of its deals
- Rwanda followed as East Africa’s second-most active country, accounting for 15% of all African deals and 37% of East Africa’s
West Africa demonstrated a more balanced distribution of deals, with
- Nigeria leading the region at 71% of transactions
Other countries, including:
- Ghana (38%)
- Côte d’Ivoire (33%), and
- Senegal (29%)
also captured notable shares, reflecting a wider spread of investment.
North Africa however, displayed a significant concentration, with:
- Egypt dominating 93% of the region’s transactions, making it the most prominent country by regional share
- Morocco trailed far behind, accounting for only 21% of North African deals
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