Private capital in Africa: fewer deals, larger cheques, more debt

The headline numbers

The African Private Equity and Venture Capital Association (AVCA) recorded 211 deals in the first half of 2026, 16% fewer than a year earlier, with median ticket size steady. Total value rose 65% to US$3.7 billion, but three mega-deals accounted for more than 40% of the capital deployed.¹

Fundraising was mixed. Final closes totalled US$1.3 billion, down 9%, yet the number of funds closing nearly doubled to 13 and the average time to close fell to 1.8 years from 2.7.¹

What moved underneath

Venture capital volume fell 34% to 102 transactions, its lowest first half since 2020, as fintech retreated. Private equity grew 22%, and private debt had its strongest first half by value. Financials lost their lead, with volume down 49% and value down 66%, while business services and energy together took more than half of the capital.¹

Exits held at 34 transactions. Trade sales nearly doubled to 53% of exits, and local corporates were behind two thirds of strategic acquisitions. Regionally, West Africa led by volume with 28% of deals, North Africa led by value at US$1.1 billion, and East Africa’s capital doubled, which displaced Southern Africa in the regional rankings.¹

Reading across to Southern Africa

Our reading of the data:

• Cashflow is back in favour. The sectors drawing capital, energy and business services, are those with contracts and revenues that can be underwritten.
• Debt and trade sales reward structure. Funding that is tied to cashflow and has a clear route to repayment is gaining over open-ended bets.
• Local capital has room to lead. With Southern Africa slipping in the regional rankings, investors who understand the market and its customers can set the pace instead of waiting for others.

Sources

1. Q2 2026 African Private Capital Report African Private Equity and Venture Capital Association (AVCA). Figures are for the first half of 2026 unless stated.

This article reflects NextCap’s reading of public information as at 28 October 2026. It is for general information only and is not financial, legal or tax advice. Figures are taken from the sources listed and may have been revised since. See our disclosures.