(Ecofin Agency) - In the first quarter of 2024, Africa's private equity landscape recorded $3.5 billion across 150 transactions, marking significant declines of 52.9% in total value and 54.7% in the number of transactions compared to the same period in 2023. This downturn represents the first notable decrease in performance since the end of the COVID-19 pandemic in 2021, according to the latest data from Ecofin Pro.

Despite the downturn, the private equity sector in Africa displayed resilience. 2023 was an exceptional year, with 331 transactions totaling $7.47 billion, showing increases of 27.3% in volume and 79.4% in value from the previous years. Compared to the performance over the past eight years, the first quarter of 2024 still aligns well with historical data, boasting an average transaction value of approximately $23.47 million—the highest since 2018 and above 2023's average.

Geographically, South Africa, Nigeria, Kenya, Egypt, and Morocco continued to be the primary beneficiaries of these investments. Investments remained predominantly in Anglophone countries, maintaining a consistent and substantial gap over Francophone regions each year.

Key sectors such as energy, financial services, telecommunications, and information technology consistently emerged as top areas for investment throughout the quarters since 2017.

For the first time, African entities like the African Development Bank (AfDB) and the West African Development Bank featured among the top facilitators of private equity in the region during a first quarter, highlighting a shift towards more localized investment leadership alongside traditional players like the International Finance Corporation (IFC) and other global development finance institutions.

Ecofin Pro, which tracks and collects daily data including announcements of funding, grants, or technical assistance, noted that while some funds are allocated directly to enterprises, a portion of the mobilized resources is channeled into other businesses or sectors as investment flows.

A more detailed analysis of these indicators will soon be available in the Ecofin Pro database, providing stakeholders with comprehensive insights into the evolving dynamics of private equity investment in Africa.