According to the African Private Capital Association (AVCA), the number of agreements in the African private capital market reached a new high in 2022 and increased by as much as 46%.
This information was included in the 2022 African Private Capital Activity Report that the AVCA published yesterday.
The authoritative yearly study provides in-depth insights into the acquisition of private capital as well as the influx and outflow of capital from Africa. It presents a wealth of information and analysis on various investment techniques, including venture capital, private equity, private debt, and real estate activities throughout all sub-regions.
The analysis confirms that Africa remains a bankable investment location. It says that Africa is the only market that has seen increases in both the volume of agreements concluded and the amount of money invested.
Private capital investments totaled over $7.6 billion in 2022, which represents a 3% increase in deal prices throughout the continent. The mid-market ($10 million to $49 million) and larger-sized ($50 million to $100 million) acquisitions, which experienced record growth, were the main drivers of the activity.
The second-highest private capital investment in the past ten years was drawn in 2022 as a result of venture capital transaction flows. AVCA Chief Executive Officer Abi Mustapha-Maduakor expressed his delight on the study despite the difficult economic conditions.
AVCA saw a startlingly high number of withdrawals, more investment possibilities in fascinating regions, great venture capital performance, and increases in private equity and private debt.