Denis Opudo
Africa is home to several Private Equity (PE) investments in the present times. Current report states that 32% of African based PE investments during 2012-2017 took place in Nigeria.
Foreign equity investors declared that Nigeria is the most attractive Africa investment destination. According to the Africa Private Equity and Venture Capital Association (AVCA) report, total Nigeria’s investment in the past five years was approximated to be $7.8 billion. The amount doubled the total equity investment in Kenya and South Africa over the same time period. The report also revealed that within the five years period, Nigeria alone recorded about 112.14 deals summing up to $7.8 billion. South Africa and Kenya generated $2.8 billion and $1.17 billion respectively.
However, based on the volume of deals, South Africa recorded (207.32) while Kenya had 100.8 private equity deals. Total continent deals accumulated to 953 in volume for the 2012-2017 period. Factors that spar investment in the last five years include good economic outlook, friendly investment climate and technological advancement in Africa.
According to Ayo Akinwumi of FSDH, Nigeria attraction in the continent is due to professionalism opportunities investors in the country. Besides, Nigeria has large market constituting of the young generation. The investors focus to make use of the opportunities available the country despite the investment risk they go through.
