Study: VC And Private Equity Investment In Africa Sets For New Record Highs

Two out of three VC and private equity executives expect a $1 billion-plus rise this year and another $1.5 billion-plus by 2025

VC And Private Equity Investment In Africa Sets For New Record Highs

More than half believe improved internet connectivity could dramatically increase venture capital and private equity investment in Africa

Private capital investment in Africa is set to hit new record highs this year and for the next three years as money floods into Africa-focused funds and new projects, new research for blockchain-based mobile network operator World Mobile shows (please see the attached press release).

Its study among senior executives at venture capital (VC) and private equity companies across the UK, US, the Middle East, Singapore, Hong Kong, France, and Germany shows optimism is building with improvements in internet connectivity a key factor. Failure however to improve connectivity could damage investment growth.

Last year saw a record 429 private capital investments in Africa worth a total $7.4 billion, while Africa-focused funds across the array of private capital attracted $4.4 billion which was also a new high and 63% above the average of $2.5 billion for the past five years.  Nearly two out of three (63%) believe private capital investments will rise to $8.5 billion or more this year while 68% forecast the total will reach $10 billion a year by 2025.   Around 66% expect Africa-focused funds to raise $4.5 billion or more this year while 53% predict the annual funds raised will exceed $6 billion a year by 2025.

Improvements in internet connectivity across the continent will be a key factor in the surge in confidence among venture capital and private equity investors – more than half (53%) believe the spread of internet access across the continent will dramatically increase investment over the next five years.

World Mobile is one of the major innovators revolutionising internet connectivity in Africa and is already working with the government in Zanzibar. Its innovative solution includes launching a unique hybrid mobile network delivering connectivity supported by aerostats backed up with a range of technologies including mesh networking, hybrid spectrum, renewable energy, and blockchain. It plans to expand the network throughout the continent and is in discussions with government officials in Tanzania and Kenya, as well as other territories underserviced by traditional mobile operators.

Micky Watkins, CEO of World Mobile said:

“Africa is already experiencing a boom in private capital investment with last year seeing record highs in funding for projects and money raised by funds.”

“Private equity and venture capital executives are increasingly seeing the opportunities in the continent and the research underlines their confidence in continuing to expand investment across Africa with the increase in internet connectivity a key factor.”

“The importance of internet connectivity to economic development will only grow in the future but there are still areas where delivering affordable and reliable connectivity remains an issue. World Mobile’s network based on the sharing economy sells affordable network nodes to local business owners, so they have the power to connect themselves and others while sharing the rewards. This will enable more people to access the opportunities that internet connectivity creates.”

World Mobile’s balloons will be the first to officially launch in Africa for commercial use, offering a more cost-effective way to provide digital connection to people and is the first step in its mission to help bring nearly four billion people online before 2030 in line with the UN and World Bank’s SDGs.

The World Mobile approach is more sustainable in environmental, social and governance terms. Environmental impacts are mitigated using solar-powered nodes, second-life batteries, and energy-efficient technology. World Mobile creates a positive societal impact through the application of its “sharing economy”, where locals share in the ownership and rewards of the network.