Nigeria, others attract $2.27bn private capital in three months

Nigeria and other top economies in Africa attracted $2.27 billion in private capital investment between July and September 2024, a new report has shown.

This was disclosed in the Stears Private Capital in Africa Report for Q3 2024, a quarterly analysis of African private market transactions with key trends in private investments and companies’ private capital.

“In Q3 2024, Stears recorded a total of 73 private market deals, of which 39 disclosed a combined value of $2.27 billion from a standout deal of Oando PLC $783 million acquisition of Nigerian Agip Oil Company, Eni’s subsidiary in Nigeria; Establishment of African Frontier Capital’s $176 million non-equity funding to D.Light in East Africa and M2P Fintech’s $100 million Series D funding led by Helios Investment Partners,” the report said.

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It noted that the deals include private equity and private debt transactions, late-stage venture capital investments, and significant mergers and acquisitions (M&A), highlighting the dynamic nature of Africa’s private market and the diverse opportunities it offers investors.

According to the report, the Stears Big Five economies — South Africa, Kenya, Nigeria, Ghana, and Egypt — accounted for 85 percent of all private market deals in Q3 2024 revealing that only 15 percent of transactions occurred outside these major economies, underscoring their outsized appeal to private investors in Africa.

“Investments in non-Big Five countries were more likely to be debt-based (28% compared to 18% in the Big 5), reflecting the relatively stable and lower-risk financing in these markets,” the report said.

It noted that South Africa and Kenya were standout performers, each accounting for a third of all private market deals in three months. South Africa dominated Southern Africa’s activity, featuring in 73 percent of the region’s deals, while Kenya was central to East Africa, contributing to 80 percent of the region’s transactions.

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“Nigeria led the West African region with 71 percent of transactions, countries like Ghana with 38 percent accounted for healthy shares, underscoring a broader investment spread,” the report said.