African Private Equity and Venture Capital Association (AVCA) recently concluded their 14th annual conference in Côte d’Ivoire, francophone Africa. The conference brought together more than 600 people from Africa’s private equity and venture capital industry that are collectively managing over USD 1.5 trillion in assets. Capria and other members attending discussed the challenges and opportunities associated with investing throughout the region. Over the next few years, Capria will be supporting fund managers throughout the continent and anticipates 7-8 of them will launch new impact funds that will help unlock USD $250 million in capital. Read more >
Below is a roundup of the conference:
AVCA released ‘2017 Africa Sustainability Study: ESG, Job Creation and Job Quality’ report
AVCA conducted a survey among 284 or ~30 per cent of PE-backed companies in Africa (between 2009-16) and GPs with over US$10 billion in assets under management (AUM) to track sustainable investing and employment impact. AVCA is the sole pan-African industry body for PE in Africa, with over 130 members.
- A total of 919 PE deals of US $22.7 billion were reported between 2011-16.
- ESG is integral to investment process in African private equity – 60 per cent of the companies are backed by PE firms which report on ESGs.
- More than 20, 800 new jobs were created, resulting in a 17 per cent increase, overall.
AfDB Reiterated Africa’s Investment Attractiveness
Frannie Léautier, Senior Vice-President of the African Development Bank in her speech highlighted the uniqueness of Africa’s investment story, impact of global geo-political risks on the economic growth and why, “Africa remains a resilient continent.”
- Africa is home to three of the ten fastest growing economies in the world – Côte d’Ivoire, Tanzania and Senegal
- Private Equity Investment inflows into Africa amounted to roughly US $35 billion over the last decade. Annual FDI inflows have risen from US $10 billion in 2000 to about US $67 billion in 2016.
- Women occupy over 12.7% of board membership in publicly listed companies in Africa, higher than all other regions in the world.
Role of Impact Investing and Development of Francophone Africa
Michelle Essomé, CEO of AVCA talks about how risk capital supports endogenous economic models, contributing strongly to inclusive development and job creating in the continent. She also highlights trends and opportunities for fund managers who are working towards the development of francophone Africa –
- “Africa does not need more investment, it need innovative financing models.”
- “North Africa and West Africa offer increased regional integration opportunities for impact-conscious investors. Indeed, the consolidation of industries spread across several North African countries is a potential for growth.”
- “As a result of the long-standing support provided by the DFIs, the majority of fund managers in Africa have the knowledge, understanding and experience to integrate ESG criteria in to their business model.
Our applications for Investment Cycle 4 are now open. If you’re an impact fund manager from an emerging market, we’d like to hear from you. Please read more about our selection criteria, our global network and make an application today.