The year also marked one of Africa’s strongest exit cycles on record, signalling improving liquidity pathways and a steadily maturing investment ecosystem, even as fundraising moderated in line with global headwinds.

Key insights:

• US$5.1bn was invested across 530 deals, making Africa the only global region to record deal volume growth in 2025 (+8%), while global deal volumes fell by 7%
• Africa recorded 81 exits in 2025, up 27% YoY, marking the second highest exit volume on record.
• Fundraising fell 34% YoY to US$2.7bn as liquidity pressures caught up with fund managers.

Deal Activity Rises and Sets a Higher Baseline

Investment activity in Africa remained resilient in 2025, with deal volumes rising for the third consecutive year.

Although the total deal value edged slightly lower to US$5.1bn, fund managers continued to deploy capital, shifting towards smaller midmarket opportunities as they adjusted to tighter global conditions.

Deals in the US$50–99mn range doubled as managers scaled back from capital-intensive transactions and focused on more targeted investments.

Private Debt gained momentum, with deal volume rising 57% YoY supported by greater use of venture debt. The asset class is now firmly established alongside Private Equity and Venture Capital as a key source of financing on the continent.

Financials continued to drive activity, reflecting ongoing demand for Fintech which accounted for 82% of all transactions in the sector.

The Information Sector was the second most active sector with investments targeting the finance, healthcare, retail and logistics sectors.

Southern remained the most active region, while East Africa and North Africa were strong performers, supported respectively by the growth in Energy and Information Technology investments.

Africa’s Exit Market Strengthens Amid Global Decline 

Africa’s exit market strengthened in 2025 as fund managers prioritised liquidity. Exit volumes rose 27% YoY to 81 transactions, the second highest- level on record, lifting the exit to- -investment ratio to 0.2x (double the level seen in 2024). This momentum stood in contrast to global markets, where exit activity declined by 15% over the same period.

The exit landscape continued to evolve. Trade buyers remained the primary route, accounting for 38% of all exits, while sponsor-to-sponsor transactions reached a record 26%, reflecting growing secondary market depth. IPO activity also improved modestly, with four listings recorded during the year.

Domestic capital was a key source of liquidity, representing 68% of private capital acquisitions. International buyers accounted for the remaining 32%, led by Asian strategic acquirers seeking to expand or deepen their presence in African markets.

Fundraising Slows Amid Liquidity Pressures While Domestic Capital Deepens

Fundraising moderated in 2025 as liquidity pressures persisted globally. A total of US$2.7bn was raised during the year, reflecting a 34% YoY decline in line with broader market headwinds. Development finance institutions continued to anchor the market, accounting for 64% of all commitments.

Domestic capital continued to deepen. African institutional investors contributed 21% of total commitments, led by sovereign wealth funds and pension funds whose allocations to private capital have expanded steadily in recent years.

This growing participation highlights a structural shift toward locally sourced capital, even as overall fundraising conditions remained challenging.

Abi Mustapha-Maduakor, chief executive officer, AVCA, said: 

“This year’s report tells a clear story: Africa is decoupling from the global slowdown. Stronger exit performance, deeper participation from domestic institutional capital, and sustained commitments from development finance institutions all point to a maturing ecosystem. We expect this momentum to build further as capital providers increase their exposure to sectors driving Africa’s next phase of economic transformation.”

This was revealed in a new report by the African Private Capital Association (AVCA), developed in partnership with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) under the Ghana Investment Support Programme (GHISP).

The report discloses a steep increase in pension funds’ appetite for alternative investments. More than half of Ghanaian pension providers now hold exposure to private capital, and 65% say they intend to raise allocations to private equity within the next five years.

By the end of 2024, total pension assets under management in Ghana reached GHS 86.4 billion ($6.2 billion), yet only 4.4% of the 25% limit set by regulators is being channelled into alternatives such as private equity and venture capital. 

This figure lags far behind Nigeria’s 34% utilisation of a 5% cap and South Africa’s 8% allocation under its 15% ceiling.

Despite this underutilisation, the report says that Ghana’s pension funds are gradually shifting from conservative savings strategies to more productive, growth-oriented investments. 

Many are targeting healthcare (55%), agribusiness (45%), and technology (40%), while by asset class, 38% favour property and infrastructure, 24% prefer private equity, and 19% are exploring venture capital.

However, AVCA’s findings also expose major obstacles preventing deeper engagement with private markets. Pension providers identified currency volatility, complex fund licensing processes, limited investable pipelines, and weak institutional capacity as key challenges. 

Nearly nine in ten pension funds (89%) interacted with fewer than three fund managers in the past year, underlining the limited depth of Ghana’s investment ecosystem.

The government’s May 2025 directive, which encourages pension funds and insurers to allocate at least 5% of assets to private equity and venture capital by 2026, has provided much-needed policy backing. This move is expected to mobilise domestic capital and drive growth across productive sectors.

To speed up progress, AVCA’s report outlines four key strategies:

• Enhancing data transparency and engagement between funds and managers
• Building institutional capacity through targeted training and pooled investment structures
• Deploying blended finance and co-investment tools to mitigate risk
• Advancing regulatory reforms to recognise Limited Partnerships and streamline fund licensing.

Commenting on the report, Abi Mustapha-Maduakor, chief executive officer of AVCA, stated:

“Ghana’s pension funds are at an inflexion point. The data highlights both the scale of investable domestic capital and the practical barriers that continue to hold it back. Unlocking this potential will require a combination of regulatory clarity, institutional capacity-building, and deeper collaboration between fund managers and local investors. 

“This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders. With these foundations in place, Ghana’s pension system can become a catalyst for long-term, sustainable growth.”

AVCA projects that Ghana could become a leader in pension-led private capital mobilisation in West Africa within five years if this momentum is sustained. The report forms part of AVCA’s Knowledge Exchange Initiative (KEI), a year-long capacity-building initiative launched in partnership with BII to enhance local institutional participation in private markets.

If Ghana’s pension reforms and fund managers align effectively, the country could bring in billions of local investment, turning its pension base into a new engine for national development.

The summit forms part of the industry association’s 21st Annual AVCA Conference week, held in Lagos until 2 May.

The global gathering brings early-stage and venture capital investors, corporate venture arms, founders, entrepreneurs, and accelerators together to discuss new trends and plot the rise of Africa’s venture capital landscape.

Abi Mustapha-Maduakor, CEO of AVCA, opened the Summit by acknowledging the strategic importance of Nigeria’s entrepreneurial landscape:

“Hosting the Summit in Nigeria is significant because this country has long been at the heart of Africa’s entrepreneurial evolution. Despite economic headwinds, we’ve witnessed innovation and resilience in the early-stage ecosystem. It is no coincidence that in 2024, Nigeria produced one of the continent’s newest unicorns.”

Tope Awotona, founder and CEO of Calendly, the US$3bn tech unicorn, and Abi Mustapha-Maduakor, CEO of AVCA, kicked off the summit with a keynote fireside chat. Describing his remarkable entrepreneurial journey, Awotona said:

“I knew scheduling wasn’t just a productivity tax—it was a tax on important business outcomes like revenue. We didn’t invent online scheduling but made it accessible to more people through three key innovations: our freemium pricing model, our viral distribution method, and our data-driven product improvements.”

The conversation affirmed the power of innovation, enabling expansion to international markets and the benefits of experimentation with price, distribution, and product. Awotona said:

“When scheduling went virtual, more users meant more data could help to improve the product and help to become the best on the market.” 

Following the sentiments of Calendly’s Founder and CEO, a panel titled Unlocking Scale: The Growth-Stage Challenge with Leo Batalov, Partner, Global Co-Head of Emerging Growth Companies and Venture Capital, DLA Piper, and Brian Waswani Odhiambo, Partner, Novastar Ventures, examined how to bridge the gap for businesses moving from early stage development to accessing capital in their growth stage, and highlighted the urgency of building strong local investor ecosystems.

Outlining the roles of founders and venture capital investors in supporting the long-term sustainability of Africa’s burgeoning tech ecosystem, Dr Omobola Johnson, senior partner, TLcom Capital, said:

“We need to help founders understand that at the growth stage, they’re competing for global capital, not just local. Founders must recognise the competition and make their businesses appealing to international investors…This makes the African market more scalable, bankable, and investable.”

The summit proceeded with a headline session, entitled Titans of Industry: Bold Moves, featuring Tosin Eniolorunda, group CEO of Moniepoint, who underscored the merits of building a valuable company and building a robust team.

He said, “If you have an organisation that is growing, investors will be interested; so we focused early on establishing good fundamentals—topline growth, profitability, EBITDA margins, return on equity. The more important goal is building a valuable company with healthy bottom lines. This opens up multiple opportunities, whether through Nigeria’s evolving stock exchange or large buyouts from sovereign wealth funds.”

Other panels convened capital allocators – representing corporate, commercial, and development-focused interests – to share their perspectives on a maturing venture capital ecosystem in Africa.

The competitive fundraising environment provided a backdrop to outline how Limited Partners (LPs) select where to invest, assess risk, evaluate opportunity, and determine priorities.

In a panel entitled Venture Debt – Africa’s Missing Piece? speakers including Rosanne Whalley, Chief Executive Officer, AHL Ventures Partners, Roeland Donckers, Managing Partner, iungo capital, and moderator Tage Kene-Okafor, Africa reporter at TechCrunch, discussed the role of venture debt products as a complement to equity funding, providing bridge capital to accelerate company growth.

According to AVCA’s latest report, venture debt showed impressive resilience in 2024, with 60 deals totalling US$1.0bn—a 3% increase year-on-year.

While representing just 12% of total deal volume, venture debt accounted for 37% of total capital deployed, with median deal sizes reaching US$7.5mn, nearly three times larger than equity-based transactions.

The session underscored the need for African investors to know when to deploy these tools and the importance of raising awareness amongst founders of these financing alternatives.

Biola Alabi Venture Partner, Delta40, noted that “there is a critical gap in financial literacy around debt financing in our ecosystem. Many founders and even some GPs don’t fully understand what debt investors require in terms of traction and stability. We need to help restructure existing debt and educate founders on how venture debt can complement equity to extend runway and avoid dilution, particularly for businesses with predictable revenue streams.”

• Strategic merger combines AVCA’s research and convening power with PEVCA’s deep local networks to support fund managers and investors.
• The merger connects international finance and domestic finance – deepening the financial sector in Nigeria and West African markets.
• Anna Evi-Parker, Executive Secretary of PEVCA, to join AVCA’s senior leadership team as Regional Head, West Africa

AVCA – the African Private Capital Association – and the Private Equity and Venture Capital Association, Nigeria (PEVCA), have announced a strategic merger to strengthen Nigeria’s private capital ecosystem.

The merger reflects a joint ambition to catalyse new investment opportunities and boost sub-regional and continent-wide growth.

The merger combines AVCA’s 20-year track record of industry advocacy, market intelligence, research, and convening power with PEVCA’s extensive networks and local expertise. The partnership demonstrates a shared commitment to promote private sector growth, the position of Nigeria’s venture capital (VC) ecosystem, and the potential for domestic capital to crowd in strategic areas such as technology, infrastructure, agriculture, and more.

The announcement comes ahead of the 21st Annual AVCA Conference in Lagos (28 April – 2 May), themed Bold Moves: Powering 10x in Africa.

The conference returns to Nigeria for the first time in 11 years, accompanied by AVCA’s newly released Nigeria Factsheet which reveals the country’s leading position in West Africa––securing 66% of regional deal volume and 52% of deal value between 2020 and 2024.

As Africa’s most active venture capital market – accounting for 19% of the continent’s VC deals and home to five unicorns – Nigeria presents a dynamic backdrop for conversations and collaboration to drive innovation and investment in Africa.

This partnership will provide more tailored support for fund managers, increase engagement with policymakers and institutional investors, and enhance cooperation between local and international finance in Africa.

In Nigeria alone, the country’s pension fund assets have surpassed ₦18 trillion ($20bn), highlighting the untapped potential of domestic capital.

By combining AVCA’s robust data, research, and investor engagement with PEVCA’s strong network and proximity to government, the merger strengthens efforts to prepare the ground to advance Nigeria and the broader sub-regions private capital ecosystem.

As part of the merger, Anna Evi-Parker will assume a combined role, maintaining her position as Executive Secretary of PEVCA while also serving as regional head of West Africa within AVCA’s senior leadership team.

Paul Botha (Metier), Chair of the AVCA Board, said:

“This strategic merger signifies an important leap forward as we combine AVCA’s established industry position with PEVCA’s invaluable local insights to promote the interests of private capital stakeholders in Nigeria and beyond. We look forward to working with the PEVCA leadership to support Nigeria’s growth as a leading investment destination on the continent.”

Dr Yemi Osindero, managing partner, Uhuru Investment Partners, said:

“We are optimistic about the opportunities presented by this strategic partnership, and I am delighted to witness this pivotal moment for Nigeria’s private capital ecosystem. This merger allows us to build on the unique strengths of AVCA and PEVCA to deliver better value for investors, fund managers and the wider industry.”

Abi Mustapha-Maduakor, CEO of AVCA, added:

“Nigeria plays a central role in Africa’s investment story, and this merger allows us to work more systematically with local actors to deepen engagement and deliver targeted support. By combining AVCA’s insights, research and convening power with PEVCA’s on-the-ground presence and network, we are better positioned to catalyse private capital that meets the region’s needs—from infrastructure to industrial development and innovation. It’s a decisive step towards aligning local and continental efforts to deliver sustainable, long-term growth.”

The event championed the industry’s growth and evolution, key players, and collective action required to increase investment in equality, diversity, and Africa’s new green economies.

Abi Mustapha-Maduakor, Chief Executive Officer, AVCA, opened the summit by setting out the imperative to pair private capital with purpose, describing it as an area where “African investors have been paving the way on sustainable investing for decades”. 

Concluding the opening address, she also announced that AVCA will be partnering with the Tony Blair Institute for Global Change to produce a comprehensive report that maps Africa’s climate policy landscape and the level of green investment from the private capital industry being channelled to the continent’s 54 economies.

The panel, Profiting from Parity: Closing Africa’s Gender Gap saw participants including Anne-Marie Levesque, Director, Gender & Impact Management, FinDev Canada consider the unique opportunities that the continent presents for gender-lens investing. 

Despite suggesting thatgender and diversity finance should not be limited to women-led businesses, Matthew Davies, Chief Executive Officer, Renew Strategies said: “It’s important that our industry is intentional about ensuring that female-led businesses are provided the capital they need to succeed. We need to achieve at least 50% parity before 2030.”

‘Tokunboh Ishmael, Co-Founder and Managing Director, Alitheia IDF and Lindsey Wallace, Senior Vice-President, Strategy & Impact, Mennonite Economic Development Associates, pledged to leverage their convening power to ramp up investment for gender and diversity finance across the continent. 

Commenting on the evolution of gender-lens investing, Ishmael said: “We need to move from billions to trillions, and integrate net-zero commitments with this mission.”

A session unpacking the rise of sustainable investment platforms marked a focal point of the day.

During the panel, Africa at the Forefront of Sustainable Investing Globally, Wale Adeosun, Founder & Chief Executive Officer at Kuramo Capital, highlighted the DFI’s anchoring role investing in Africa from as early as the 1970s.

He also advocated for GP-LP strategies to back the creation of novel technologies and industries for the next generation.

Karima Ola, Partner, LeapFrog Investments, described how the popularisation and evolution of impact investing has been characterised by developing the DFI toolkit towards “intentionality” to solve local priorities, generating sustainable returns and opportunities with businesses. Ola and fellow panellists shared success stories involving the presence and performance of sustainable investing in Africa compared to insights from other emerging markets. 

Alison Klein, Manager Private Equity, FMO commented on Africa’s just transition and suggested that “Climate intention does not mean we can’t finance expansion in job creating sectors. It is important we develop a holistic view and utilise synergies that improve resource efficiency and economic output such as manufacturing, for example.”

These perspectives were followed by a session where next-generation founders, entrepreneurs, impact investors, and philanthropic players advancing sustainable growth across the continent discussed challenges and practical solutions for investing and innovating for social change.

Panellists on the Sustainability In Practice panel included Frank Aswani, Chief Executive Officer, African Venture Philanthropy Alliance. He raised the importance of mobilising local pools of capital through innovation with financial instruments to support high-potential markets in Africa at a time of global uncertainty and instability.

During the panel Digitalisation: The Last Mile in Unlocking Sustainable Development, Shruti Chandrasekhar, Regional Lead, Africa, Disruptive Technologies & Funds, International Finance Corporation discussed the prospects of an emerging  circular economy on the continent, and advised that a “unique aspect of Africa means that we’re not only fixing something that already exists but building something new and recognising that the most productive way to do that is to integrate sustainability into solutions”.

At the Financing Africa’s Climate Transition: Mitigation & Adaptation panel, Tariye Gbadegbesin, Managing Director & Chief Executive Officer, ARM Harith, drew the delegates’ attention to the need to define an adaptation framework and the feasibility of a co-benefits approach that yields outcomes in both climate change mitigation and adaptation.

The panel also explored how international investment can be applied to co-investments that encourage domestic capital and support the entry of institutional investors, including pension funds, now increasingly moving into Africa’s impact space.

The Making Impact Meaningful panel assembled high-level voices from DEG, Meridiam, UN PRI, and WHO Foundation to debate how the industry can overcome greenwashing to establish detailed and context-specific metrics for sustainable investing that unify diverse approaches to how stakeholders in the private capital industry can monitor and measure social and environmental impact.

The closing session saw industry figures such as Adam Hadidi, Founder & Managing Director, BluePeak Private Capital, reflect on how collective efforts such as GP-LP structures, green bonds, and digital and crowdfunding platforms can be deployed to maximise sustainable investing. 

Opuiyo Oforiokuma, Senior Partner, Africa50, concluded: “Africa cannot ignore climate change simply because we are only responsible for 4% of global emissions. Asset recycling in green assets can be used as a mechanism to bring in more capital in green infrastructure”.