The African Private Equity industry has demonstrated its resilience in the face of the financial crisis caused by the COVID-19 pandemic with US$1.1 billion in funds raised in 2020 and 81 transactions reported during the period, for a total of US$0.7 billion. The COVID-19 pandemic has precipitated an economic crisis, altering Africa's socio-economic landscape and its growth prospects significantly, according to data released by the African Private Equity and Venture Capital Association (AVCA).

The African Private Equity Data Tracker has revealed that this economic reality, which threatens to upend recent progress in development, contrasts with forecasts of robust economic growth on the continent, which expected to average 3.9% in 2020 and 4.1% in 2021. The pandemic will also weigh heavily on certain African markets which will experience severe contractions like the global economy. Financials, information technology and consumer discretionary were the most active sectors, attracting 49% of deals by volume, with technology companies accounting for 51% of investments. The healthcare sector accounted for the largest share of PE deals by value (24%), led by Mediterrania Capital Partners' investment in MetaMed, the largest diagnostic imaging center platform in Egypt, Jordan and in Saudi Arabia”.

In the first half of 2020, 39% of the total amount closed (including interim and final closes) came from funds in sub-Saharan Africa; Country-focused funds came second, accounting for 30% of total funds raised; Pan-African and regional funds accounted for the remaining 31%.

In the first half of 2020, North Africa attracted the largest share of PE deals by volume (31%) and value (42%), followed by West Africa accounting for 21% of deal volume and 22% of transaction value.