NAIROBI (Xinhua) --
Rapid urbanization, a growing middle-class and
increased consumerism are among things that are making private
equity firms raise their investment in Africa, analysts said on
investment firm, said the investment has been on the rise for
the better part of this year as more investors putting money in
financial technology, education, financial services and health
sectors, among others.
According to Africa
Private Equity and Venture Capital Association (AVCA), in the
first quarter of 2018, private equity deals across Africa
totaled 1 billion U.S. dollars. Between 2010 and 2017, private
equity funders have invested in Africa some 25.6 billion
“There is also an
attractive valuation in the sub-Saharan Africa’s private markets
compared to the public markets and even the global markets.
There has also been a better economic projection in the
sub-Saharan Africa compared to global markets,” said Cytonn.
In Kenya, Catalyst
Principal Partners, a private equity firm, last month raised
15.8 billion Kenyan shillings (155 million U.S. dollars) from
pension funds and international investors in its second round of
Similarly, in South
Africa, private equity firm Ethos announced last month 49
million dollars investment into Channel VAS, a FinTech provider
that specializes in data analytics and mobile financial
services, according to Cytonn.
“We remain bullish
on private equity as an asset class in sub-Saharan Africa. Going
forward, the increasing investor interest and stable
macro-economic environment will continue to boost deal flows
into African markets,” said the firm.
UN official urges Africa to
borrow in local currencies to improve debt sustainability
NAIROBI (Xinhua) --
A United Nations official on Sunday urged African
states to borrow in local currencies in order to improve their
executive secretary of the United Nations Economic Commission
for Africa, told Xinhua in Nairobi that the continent will need
to work together with the financial market as well as
concessional lenders like the World Bank and the African
Development Bank to help bring down the risk of local currency
denominated debt issued domestically or abroad could help the
continent reduce its exposure to exchange rate risk that could
lead to debt distress,” Songwe said during the 49th
Plenary Session of the African Economic Research Consortium
Biannual Research Workshop.
The five-day event
brought together over 200 participants, including researchers,
policymakers and private sector actors.
Songwe said a number
of African countries such as Rwanda and South Africa have
already issued local-currency debt.