Africa: Resilience in the private equity market
By Angela Simpson and Lydia Shadrach-Razzino, Partners and Co-heads of the Corporate/M&A Practice, Baker McKenzie Johannesburg
Private markets in sub-Saharan Africa (SSA) have seen a continuous rise in activity since the COVID 19 pandemic. The latest AVCA Private Capital Activity Report 2022 revealed that USD 7.6 billion of private capital was invested in 2022, resulting in a 3% growth in deal value across the continent last year, after a similarly upbeat 2021. According to the report, 37% of the deal volume came from multi-region investments.
Challenges, risks and resilience
This resilience is despite the impact of numerous crises over the last couple of years, especially the looming global recession, supply chain disruptions and soaring energy prices. These factors have led to fea...