African private capital fundraising hits $4 billion in 2024  

The growth signals renewed investor confidence and a shift towards local capital mobilisation, despite global macroeconomic headwinds.

According to the 2024 African Private Capital Activity Report by the African Private Capital Association (AVCA), infrastructure and private equity funds led the fundraising charge, each accounting for 30% of total capital raised during the year.

Development finance institutions (DFIs) remained the largest contributors, committing $1.4 billion, roughly 42% of the year’s fundraising total.

However, the more notable trend was the surge in domestic investor participation. African pension funds, insurers, and corporates increased their commitments 3.7 times, from $171 million in 2022 to $639 million in 2024.

“The rise of African institutional investors, growing infrastructure allocation, and the rebound in exits all point to a deepening and maturing private capital market in Africa,” said CEO of AVCA, Abi Mustapha-Maduakor.

She added that private capital is increasingly driving long-term value across sectors, particularly through more strategic deal sizes and co-investment models that appeal to both global and local Limited Partners (LPs).

Africa’s private capital ecosystem proved resilient in 2024, recording 485 transactions—an 8% increase in deal volume compared to 2023.

While overall deal value dipped slightly to $5.5 billion (a 7% YoY decline), the drop reflects a shift toward smaller, targeted investments as investors navigated global economic uncertainty.

Another key highlight from 2024 was a 47% rise in exit activity, with 63 recorded exits across Africa.

This marks a return to pre-pandemic levels as investors, having delayed exits in previous years, sought to take advantage of improving market conditions.

The increase also reflects growing pressure to return capital to LPs and prove liquidity, especially after a period of economic uncertainty and valuation volatility.

Despite robust activity, Africa-focused fund managers are still sitting on significant unallocated capital.