AVCA: Francophone Africa secures $900mn private capital between 2022 – H1'24

Private capital investment in Francophone Africa has reached new heights, with about $900 million invested in 117 deals between 2022 and the first half of 2024. The African Private Capital Association's first-ever report exclusively dedicated to private capital in Francophone Africa revealed that Senegal, Côte d’Ivoire, and Rwanda emerged as the top countries with the highest deal volume. Nadia Kouassi Coulibaly, Head of Research at the African Private Capital Association, shared insights from the report in an exclusive interview with CNBC Africa. Kouassi Coulibaly emphasized the importance of shedding light on the region, which has historically been overshadowed despite strong economic performance. Traditionally, the focus has been on more mature markets like Nigeria, Egypt, Kenya, and Southern Africa, so this report aimed to showcase the periphery markets of Francophone Africa. One key highlight of the report was the rising investor interest, particularly led by Côte d'Ivoire and Senegal. The region's forecasted economic growth exceeding the continental average, strong country leadership, and supportive regulations have made it attractive for investors. Additionally, regional integration through initiatives like the African Continental Free Trade Area has accelerated cross-border investments, making Francophone Africa more appealing to international investors. Notably, private debt has also gained traction in the region, accounting for approximately a fifth of both private capital deal volume and deal value over the past two and a half years. This shift towards private debt has been driven by investments in infrastructure and industrial sectors in countries like Côte d'Ivoire, Benin, and Senegal. Furthermore, government support, especially in the tech ecosystem for startups, has played a crucial role in driving investment activity in countries like Côte d'Ivoire and Senegal. Policies supporting digital transformation and sectoral innovation have led to a significant increase in technology deals in various sectors, including fintech, industrial tech, and clean technology. While Francophone Africa's private capital activity is on the rise, it is not expected to overshadow Anglophone Africa's dominant position in the market. However, an increase in activity within the Francophone region, driven by venture and growth, is anticipated in the coming years.