Q2 2025 Private Capital Activity in Africa

This series offers an overview of Africa's Private Capital Activity, with this report highlighting key trends in investments, exits, and fundraising observed during the first half of 2025.

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Key Findings:

Signs of Stabilisation Across the Investment Lifecycle: Dealmaking held steady at 215 transactions, with values flat at US$1.9bn. Fundraising rose 18% YoY to US$1.4bn, while exits matched their previous record.
Venture Capital Contraction Eases: VC deal flow stabilised at 142 manager-led transactions, closely tracking the two-year average of 148 deals.
Private Debt Maintains Upward Trajectory: Deal volume rose 23% YoY, underscoring growing investor appetite for the asset class.
Regional Divergence Sharpens: West Africa recorded 40 deals in H1 2025, down 27% YoY, and registered its third consecutive year of decline. In contrast, Southern Africa logged 55 deals worth US$906mn: its second-highest H1 value in over a decade
Technology Drives Sector Allocation: Tech-enabled innovation remained a defining theme, with capital flowing to FinTech, AI-powered business intelligence, green mobility, and HealthTech.
Local Capital Plays a Bigger Role: African LPs contributed 25% of final close commitments, up from 18% in H1 2024
Outlook – Steady Momentum Ahead: African private capital is expected to maintain steady momentum, with dealmaking and fundraising showing resilience into H2 2025.

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📊 Signs of Stabilisation Across the Investment Lifecycle

Dealmaking held steady at 215 transactions, with values flat at US$1.9bn. Fundraising rose 18% YoY to US$1.4bn, while exits matched their previous record.