Why Africa Remains Ripe for Private Equity

The world’s leading advisor on business strategy, the Boston Consulting Group (BCG) says Africa remains one of the world’s growth opportunities for private equity investors, despite a crash in global commodity prices that has swept African economies off their feet.

In its latest report titled “Why Africa Remains Ripe for Private Equity,” BCG observed that funds which consider more flexible investment strategies and set new types of corporate targets would generate high returns for investors
It is mentioned in the report that many of the world’s largest private equity players are now active in Africa. Carlyle Investment Management is managing a $698 million fund dedicated to sub-Saharan Africa. The Abraaj Group, based in Dubai, is deploying $1.8 billion across the continent. Helios Investment Partners is managing a total of $2.3 billion.

It is also specified that the ‘continent has economic strengths that should continue to present attractive growth opportunities for private equity for the foreseeable future. The region’s rapidly expanding companies can absorb immense foreign investment and generate high returns for investors. Another driver: Africa has tremendous needs for private capital to fund its continued growth. To fully capture this opportunity, however, investors need to broaden their investment approach.’

Source: BCG Perspectives