While South Africa attracts more than half the continent’s Private Equity (PE) transactional activity, investors are becoming relatively more optimistic about the economic prospects in East and West Africa. This is according to the 2015 Deloitte Africa Private Equity Confidence Survey. Here are some of the highlights from the report:
As per the survey, 79% of respondents expect overall PE market activity in Eastern Africa to increase compared to 83% for West Africa and 67% for Southern Africa.
Among the Eastern Africa countries considered for the survey - Burundi, Ethiopia, Kenya, Rwanda, South Sudan, Tanzania and Uganda - respondents were most optimistic about Ethiopia, Kenya and Tanzania.
In terms of investment activity, the majority of respondents expect to make new investments (71%) over the next 12 months relative to those who expect to exit current investments (29%).
It also appears that most respondents expect investment activity to heat up as evidenced with the majority envisioning increased competition for deals.
For new investments in East Africa; Kenya, Tanzania and Uganda are expected to be the most likely targets.
Overall, the report indicates that the time to invest in East Africa is now. The Hub is on a mission to take investment in the region to a new level.