The $3bn Private Credit Opportunity in Africa
Written by Ali Al-Suhail, Vice President at DAI Magister
Africa’s mid-market businesses, the backbone of the continent’s economic growth, can find themselves trapped in a financing void. With annual revenues typically surpassing $10 million, these companies find themselves in a precarious position – too large for microfinance, yet too small or risky for traditional banks. The result, we estimate, is a staggering $3 billion credit gap, a figure that highlights the immense untapped potential for investors seeking globally competitive returns while driving the growth of Africa’s most promising enterprises.
The African Private Equity and Venture Capital Association (AVCA) reports that out of the $32.1 billion in private capital raised between 2012 and Q3 2021, a mere $1.5 billion was allocat...
