The financial sector led investor interest across Africa in the third quarter of 2024, contributing 33% of all private capital transactions. Kenya and South Africa emerged as key players, accounting for a significant share of deal activity. Between July and September, 73 private market transactions were recorded, with 39 deals disclosing a total value of $2.27 billion (Sh293.96 billion).
Financial services remained the most active sector, followed by consumer goods at 19% and energy at 18%. Within financial services, the payments subsector accounted for 29% of deals, while MSME lending contributed 20%. Kenya and South Africa each contributed 33% of all transactions, driven by private equity, private debt, late-stage venture capital investments, and notable mergers and acquisitions.
Consumer goods benefited from the rapid growth of e-commerce, which comprised 27% of the sector’s transactions. Agriculture, while employing over half of Sub-Saharan Africa’s workforce, accounted for only 15% of private capital deals, with nearly half focused on production to catalyze farm economy growth.
Equity investments dominated financing, making up 75% of transactions, with debt accounting for 19%. Agriculture and energy sectors saw the most debt-financed deals, representing 79% of recorded debt transactions.
Regional analysis showed Southern Africa leading with 45% of all deals, closely followed by East Africa at 41%. Collectively, South Africa, Kenya, Nigeria, Ghana, and Egypt drove 85% of all transactions. These five economies dominated the technology sector, underscoring their favorable environments for innovation and investment growth.
