Private Capital Activity in Africa Q3 2025 YTD in Review (AVCA)

Summary

• Year-to-date deal value declined to US$2.6bn, below the post-correction average of US$3.6bn, while 49% of transactions were undisclosed versus a 74% disclosure rate in 2023-2024.p.1
• Venture Capital recorded 211 deals worth US$0.8bn, representing 62% of all deals.p.2
• Private Equity, with 68 deals totalling US$0.5bn, saw deal volume fall 37% YoY.p.2
• West Africa posted 73 deals worth US$0.3bn (an 8% YoY decline), while Southern Africa led on value with 99 deals and US$1.2bn.p.2
• Local capital mobilisation reached 26% of commitments, amounting to US$295mn in 2025 YTD, up from 16% in the same period of 2024.p.3
• Average holding periods fell to 5.9 years, down from 6.6 years, as fund managers accelerated exits.p.3
• Several large final closes in the pipeline are collectively valued at approximately US$2bn.p.3

Key insights

1. Activity in the US$50-99mn range nearly doubled, while deals below US$50mn accounted for most of the year's contraction.p.1
2. Southern Africa remained the value leader with 99 deals (down 2% YoY), accounting for nearly half of total deal value at US$1.2bn.p.2
3. West Africa's 8% YoY decline in deal count is its third consecutive but modest contraction.p.2
4. Domestic investor participation rose, with local capital reaching 26% of commitments versus 16% a year earlier.p.3
5. A potential Q4 uplift in fundraising may materialise, supported by large final closes valued at approximately US$2bn.p.3
6. Venture Capital is the primary engine of private capital activity, representing 62% of all deals.p.2