East Africa private equity activity in review - H1 2020

by Kevin Kuria

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Private Equity investment activity was robust in the first half of the year, despite the coronavirus pandemic, and outpaced investment activity in the same period in both 2018 and 2019. This, we believe, is reflective of the positive long term growth prospects of the East African market and the fact that a number of managers recently achieved financial close for both maiden and follow-on funds, and are thus in investment mode. DFIs (Development Finance Institutions) have also announced significant capital commitments for the sub-Saharan Africa region in recent times.  

The exit market remains subdued, with no exit having been recorded so far in 2020; indicative of the impact of challenging economic conditions over the last three years on performance and, as a result, on valuations. Going forward, although exit activity may be a little muted, we do expect some pick up, and we have visibility on this from our pipeline, where we are advising on a number of exit transactions.  

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Kuria is a Senior Associate with I&M Burbidge Capital, Kenya.