Considering the huge investment opportunities offered by these demographic, urban and economic changes, the African continent has become a key destination for private equity funds. This growing interest of investors shows that the image of the region is improving.
With the development of fast growing private equity on a continent whose macroeconomic size is reduced, there are risks of “overheating”. The private equity players have to adapt to the specificities of the African continent, characterized by small operations in contexts of family entrepreneurs who do not wish to sell the majority of their company.
Overall, private equity funds bring several benefits to African economies : mobilize long term savings and invest it in good projects, provide capital needed in high-growth companies and reduce the gap between the industry in developed countries and the emerging countries.