Q3 2025 Private Capital Activity in Africa

Key Findings:

• Market Recalibration: Africa’s private capital landscape is transitioning to a higher and more measured baseline with 341 deals YTD (+17% YoY), surpassing post-2022 correction levels.

• Selective and Scaled Capital Deployment: Deal value fell to US$2.6bn YTD, tempered by a rise in undisclosed deals. Capital re-centred around mid-sized tickets, with US$50 - US$99mn deals nearly doubling.

• Private Debt Activity Sustains Market Momentum: Private Debt activity surged by 71% in Q3, nearly matching 2024 full-year activity. Venture Capital stabilised, and Private Equity remained broadly aligned with post-2022 averages

• Industrials & Utilities Drive Sector Realignment: Industrials posted an average annual growth of +23%, while Utilities grew by +75% YoY. Financials remain dominant by volume, while Consumer Discretionary continues to contract.

• Regional Shift: East Africa delivered its second-highest Q1–Q3 on record, while North Africa grew +13% YoY. Southern Africa continues to lead in value (49%).

• Fundraising Slowdown: Final closes fell by 22% YoY to US$1.4bn, alongside extended fundraising cycles (2.3 years) driven by heightened LP selectivity. Yet domestic investor participation rose to 26%, albeit with smaller ticket sizes.

• Exit Activity Accelerates: Exit volumes grew by +4% YoY, and average holding periods fell to 5.9 years, the shortest since 2018.