Q2 2026 African Private Capital Report

This series provides an exclusive look at the latest trends in African venture capital, offering insights into regional dynamics, sector-specific shifts, and the key areas driving investment across the continent during Q2 2026.

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For questions or comments on this publication, please contact research@avca.africa.

Key Findings: 

• Fundraising Regains Breadth and Momentum: Final closes reached US$1.3bn, down 9% YoY. Yet the number of funds closing nearly doubled to 13, and the average time to close fell to 1.8 years from 2.7 years.
• Large Deals Fuel Value Rebound as Dealmaking Slows: Deal volume slid 16% YoY to 211 on softer VC activity, yet median ticket held firm. Value jumped 65% to US$3.7bn, with three mega-deals accounting for over 40% of total capital deployed.
• Private Equity and Private Debt Offset Venture Capital's Continued Contraction: VC volume dropped 34% YoY to 102 transactions, its lowest H1 since 2020 as Fintech retreated. PE expanded 22%, while PD reaching its strongest H1 by value.
• Large Deals Redraw Regional Rankings: West Africa led by volume with 28% of deals. Large deals lifted North Africa to first by value at US$1.1bn and doubled East Africa's capital, displacing Southern Africa.

• Financials Lose Its Grip as Capital Backs the Real Economy: Financials ceded their lead as volume dropped 49% YoY and value 66%. Business Services and Energy captured over half the capital, while AgriTech and HealthTech signalled a broader tech thesis.
• Domestic Trade Sales Keep Exit Activity at Elevated Levels: Exit activity held at 34 transactions, extending the recovery. Trade sales nearly doubled YoY to 53% of exits, with local corporates behind two-thirds of strategic acquisitions. 

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