A report published on 20 August by the African Private Equity and Venture Capital Association (AVCA) mentions that local and international players in the private equity industry injected an amount down 66% in the first half of 2024 compared to that recorded during the first six months of 2023.

900 million dollars were injected into African businesses in the first half of 2024. This sum is down by 66% compared to that recorded during the first six months of 2023. The number of transactions recorded between January 1 and June 30 of the current year on the continent, for its part, reached 182, registering a decrease of 17% compared to the same period last year

The report explains the decline in the value and volume of transactions by the persistence of macroeconomic uncertainties in a context marked by the maintenance of restrictive monetary policies, high inflation and geopolitical tensions, which prompted the majority of players in the sector to do exercise caution and to opt for smaller tickets. Deals over $100 million fell by 91% year-on-year in the first half of the current year, while deals under $50 million represented 88% of the total value of investments recorded.

Moreover, West Africa is an exception, with an increase of 3% over the same period.