Africa’s private equity shows resilience despite COVID-19

Africa's private equity industry has showcased remarkable resilience in the face of the challenges posed by the ongoing COVID-19 pandemic. Despite the uncertainties and disruptions brought about by the global health crisis, the continent saw a total of $1.1 billion raised in private equity funds in the first half of the year. This figure includes both final and interim closes, reflecting a strong commitment to investment in the region. Ponmile Osibo, Partner at Platform Capital, sheds light on the current landscape of private equity in Africa. Osibo highlights the impact of the pandemic on the industry, noting that while there has been a decline in the number of deals, there is still significant activity in the technology sector. Tech-based companies have emerged as key players driving growth and attracting investment amidst the crisis. The interview also delves into specific regions such as West Africa and Nigeria, where deal sizes have been moderate compared to previous years. Despite the challenges, investors remain optimistic about the long-term prospects of the continent, with a focus on sectors like technology and agriculture. The discussion extends to the outlook for private equity and venture capital exits, with Osibo expressing confidence in a resurgence of activity in 2021, driven by a continued interest in technology and innovation. Overall, the sentiment towards Africa remains positive, underpinned by strong fundamentals and a growing appetite for long-term investment in key sectors.