West Africa Trumps Southern Africa To Emerge Top Private Equity Destination




The 2014 Deloitte’s East Africa Private Equity Confidence Survey shows that West Africa raked in more private equity deals than Southern Africa and Eastern Africa. This is happening for the third time in three years. As can be expected, most of the Western African deals were in Nigeria while most of the Southern African deals were in a South Africa.

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The statistics showed that private equity deals, in 2012, reached $298.45 million in West Africa and $241.9 million in Southern Africa. The 2013 private equity transactions were valued at $545 million for West Africa and $491 million for Southern Africa. This could corroborate the claims by Euromonitor International that consumer spending in sub‐Saharan Africa equaled nearly $600 billion in 2010.

Nicholas Plant, who heads the private the equity practice for the UK & Africa at Dentons, had the following to say on this topic: “I think the great sectors for private equity are those where you can back an entrepreneur or a really good management team so they tend to be businesses that offer services, restaurants, shops and manufacturing perhaps.”[eap_ad_2]

Nigeria raked in the highest number of private equity deals in West Africa. The economy is the largest in Africa and is projected to grow at 7% yearly. Mr Plant made some remarks on the Nigerian economy: “Manufacturing is just about 4% of the economy here, so that’s something that you expect to expand as the economy becomes more mature and that’s what private equity is all about. It’s about taking a small company and taking it to the next stage. So for instance, if you had a chain of restaurants that just had two shops, private equity will back it and take it to like 50 shops in the country where it originated and then ideally, expand it into countries.” (Ventures Africa)[eap_ad_3]

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