One issue for the post-covid-19 revival of the private and public sectors in 2021 in Africa is that of resource mobilization. The first two months of the year have been dynamic, but the stakes and the needs are higher.
$ 895 million in resources have been mobilized for private investment in Africa, we learn from several sources. The most important transaction in this area is that carried out by SPE Capital Partners for the benefit of its first fund intended for Africa and the Middle East, for a total of $ 258 million, for a targeted amount of $ 200 million.
“This is an important step for our young company. We are grateful for the strong vote of confidence from our investors, whose unwavering support has been invaluable.
The difficult environment we currently find ourselves in underscores the importance of investing in resilient sectors and high quality companies, ”said Nabil Triki, Managing Partner and CEO of SPE Capital, upon finalizing the surgery. The second largest fundraising fundraising for private equity was carried out by Africa Finance Corporation (AFC).
The Nigeria-based institution received a $ 250 million loan from the Development Finance Corporation (DFC), the US administration’s body responsible for financing international development.
“This funding will ensure the pursuit of our goals in the wake of the covid-19 pandemic which has placed greater responsibility on development finance institutions, in their strategy to support sustainable economic recovery across Africa” , said Samaila Zubairu, president and director of the AFC.
Less mobilization of financial resources is essential for an Africa where the private and public sectors do not have easy access to financial and capital markets.
Due to the large size of the informal sector, it is now difficult to know precisely what was the economic and financial impact of the pandemic on African businesses, as well as their financial resource needs.
Beyond the mobilization of these resources, the other challenges will be to find investment opportunities. Many sectors of the economy are in need of resources on the black continent.
But investor arbitrage is dominated by profitability and investment exit possibilities. The situation created by the pandemic has complicated these calculations.
Source Ecofin Agency