European development finance institutions were the most active investors in African private capital funds in the first three months of this year, research from the Nigerian financial data platform Stears showed, underscoring the continent’s continuing dependence on foreign capital for private investment.
Attendees at the recently concluded African Development Bank annual meeting reinforced the need for the greater mobilization of capital from the continent to fill a $400 billion development financing gap. Investor concerns about paths to exit and recouping capital have long held back private capital inflows in Africa, but a growing market for secondaries is aiming to spur more investment.
