Oikocredit’s Post

Here are the data on total VC funding amounts in Africa from 2021 to 2023, split by funding stage. Overall, VC investments into Africa have been decreasing for the past 3 years, consistent with global trends. What does the investment outlook look like for Africa in 2024 and beyond? Alehar supports companies and investors in the dynamic markets of India and South East Asia with fundraising, M&A, and debt advisory. #africa #venturecapital #aleharinsights

Innovators and entrepreneurs in Africa have an abundant supply of innovative solutions to meet the challenges the continent faces, but an inadequate amount of funding to fuel these solutions - the London Stock Exchange Group (LSEG) estimates this funding gap is $140bn. At AfriVest, we believe we (that's you too are the solution and can power an African-led and African-enabled, African future. We look forward to going on this journey with you. Note: Always remember that capital is at risk when investing and you could lose all your money invested. #africa #africaninvesting #impactinvesting

We’re pleased to announce the sale of our stake in I&M Bank Ltd, an East African banking group, to AfricInvest Group, a leading Pan-African investor. We invested in I&M in 2016 and have actively supported I&M’s growth and commitment to creating lasting, sustainable environmental and social value, including: 🏪 Enhancing its offering to SMEs and personal banking clients. 🌍 Expanding its regional presence across Kenya, Mauritius, Tanzania, Rwanda and Uganda. 📱 Being a pioneer in digital financial services in East Africa.   Selling our stake to a like-minded investor is one of the most significant secondary transactions in East Africa in recent years and represents a vote of confidence in the region’s financial services sector. The proceeds of our divestment will be recycled to make further impact investments in countries that are most in need of patient, long-term capital.

Micro, Small, and Medium Enterprises (MSMEs) are key drivers of growth in African economies, yet they often struggle to access long-term capital. To address this, in partnership with the Capital Markets Authority- Kenya, we are currently co-hosting a two-day workshop on establishing a listed SME debt fund. This fund will enable domestic institutional investors to participate in the markets, fostering a more inclusive financial ecosystem for #MSMEs. The fund, domiciled in #Kenya, will target investments across East Africa using a local currency permanent capital vehicle and a unique blended finance structure to mobilise domestic capital into SME financing. Stay tuned to find out more about how we can unlock the full potential of MSMEs in Africa and drive sustainable growth. #SustainableInvestment #InclusiveFinance #DomesticCapital #MakingFinanceWork Evans Osano, DBA Brian O. Yalla, CFA, CAIA, CIPM, MCSI, CIFA Adebayo Araoye Cynthia Burudi Lilian Bwire Alphonce Mwangi

In Africa, private capital fundraising dips to $1.9 billion, a reflection of challenging macroeconomic conditions affecting growth and investment on the continent. #AfricanEconomy #InvestmentTrends #MarketInsights

Southern Africa has been a crucial region in Africa’s developing private capital landscape. In the early 1990s, the first wave of Africa-focused private equity firms began in #SouthAfrica, soon expanding across the continent. Despite challenges like #currencyvolatility and external competition, the region has seen steady growth in private capital investments since 2016, peaking in 2022. Southern Africa remains a key player in #PrivateCapital in #Africa, capturing 26% of the continent's deal volume and US$11.7bn in investments over the past 12 years. Download the full report for more insights: https://lnkd.in/ebsJ2btH #PrivateEquity #AfricaInvestments #SouthernAfrica #EconomicGrowth

The Africa Investment Forum (AIF) launched the first of its Bankability Series on the sidelines of the African Development Bank Group’s 2024 Annual Meetings held in Nairobi. The launch featured presentations by two #AIF partner organisations, Cygnum Capital and the Sustainable Energy Fund for Africa (SEFA).    In her opening remarks, Chinelo Anohu, Senior Director at AIF, explained: "The Africa Investment Forum's Bankability Series is a testament to our unwavering commitment to advancing the bankability of deals across Africa. By showcasing innovative approaches and fostering collaboration among key stakeholders, we aim to redirect global capital flows towards Africa's transformative projects…” Anohu also spoke about the Transition Support Facility, funded by the African Development Bank Group, through which the AIF supports select private sector projects.    Cygnum Capital’s presentation showcased its advisory role in successful projects, including the Alliance for Green Infrastructure in Africa. The presentation also highlighted challenges facing project preparation and development in Africa.   SEFA’s presentation explained its holistic approach to bankability, providing some examples of the range of businesses that have achieved bankability under its guidance, such as the AIF, including the Facility for Energy Inclusion (FEI), Africa’s first dedicated off-grid, mini-grid, and small independent power producer debt fund.   AIF founding partners include the African Development Bank Group, Africa50, Afreximbank, the Africa Finance Corporation, the Development Bank of Southern Africa, the European Investment Bank, the Islamic Development Bank and the Trade and Development Bank.   More details about the presentations at the launch and about AIF: https://bit.ly/3yKSiE7    #GlobalCapital #AfDBAM2024

Struggle for Fresh Capital Grips African Firms. Private capital fundraising in Africa declined nine percent to $1.9 billion in 2023, marking the second-lowest fundraising in 11 years. This challenging scenario underscores the hurdles businesses face in securing fresh capital for their growth and expansion endeavors across the continent. According to the latest Africa private capital activity report (2023) by the AVCA - The African Private Capital Association, the volatile macroeconomic conditions prevailing in various African markets are a significant factor contributing to this decline. Rising interest rates, soaring inflation, depreciating currencies, and dwindling forex reserves are among the challenges highlighted in the report. The report indicates that foreign investors are opting to retain capital within their local markets, thereby reducing commitments elsewhere, including Africa. As a result, private capital deals plummeted by 22 percent to $5.9 billion, while private capital exits experienced a staggering 48 percent decline to 43, marking the highest year-on-year drop in exits in a decade. Fund managers adopted cautious investment strategies, refraining from large investments and preferring smaller ticket sizes in certain instances. This cautious approach led to a decline in investment volumes and exits, exacerbating the challenges of the fundraising environment. Venture capital investments, traditionally a key asset class in Africa, contracted significantly by 34 percent in 2023. This decline had far-reaching consequences across various sectors and regions, particularly West Africa. Despite the overall downturn, sectors such as Financials, Information Technology (IT), and consumer discretionary emerged as the most active sectors by volume. However, financial technology investments recorded a notable decline, reflecting broader challenges within the sector. #AfricanBusiness #PrivateCapital #EconomicChallenges #InvestmentTrends #VentureCapital

Private capital investment holds the key to driving South Africa's recovery. With government reserves running low, the engine of economic resurgence lies in the hands of private investors. Let's unite to ignite growth and create healthy capital structures that will allow businesses to operate and scale up economic activity in the country. #MaiaCapital #InclusiveEconomy.

🌍 Excited to share insights from a recent interview with our Chair, Obaid Amrane, on #Africa's #sovereignwealthfunds on CNBC Africa. In the interview, Mr Amrane highlights three key points: 👉Africa's SWFs are diverse, and many of them invest at home to catalyse economic development and crowd in #FDI. Not all SWFs are commodity stabilisation funds! 👉Mr Amrane highlighted the success of IFSWF members NSIA: Nigeria Sovereign Investment Authority and FONSIS - Fonds Souverain du Sénégal in financing #infrastructure projects, #renewableenergy, and supporting #SMEs. 👉African SWFs need help to develop their countries' #investment industry, enhance #governance structures, and align with international investor expectations to maximize their impact in driving #economicgrowth. These issues will be up for discussion at the Africa Sovereign Investors Forum meeting hosted by Mauritius Investment Corporation (MIC) Ltd next month. https://lnkd.in/eF_qb_xm