The Big 5, South Africa, Kenya, Nigeria, Ghana, and Egypt, accounted for 85% of Africa's private market transactions in Q3 2024. Report from Stears

Private capital is powering growth across Africa, but the numbers tell a focused story: South Africa, Kenya, Nigeria, Ghana, and Egypt's Big 5 economies accounted for 85% of all private capital deals in Q3 2024 (Stears Report). These countries offer favourable policies, economic stability, and vibrant ecosystems that continue to attract global investment.

Why does the Big 5 lead?

• Nigeria’s Fintech Progress: Regulatory advancements have drawn international venture capital.
• Kenya’s Mobile Money Ecosystem: A pioneer in digital payments, boosting investor confidence.
• Tech Investments: Deals like Terrapay’s $95 million financing for remittance operations reflect the region’s innovation appeal.

What’s happening across Africa? In Q3 2024:

• Financial Services led private capital activity, contributing 33% of deals.
• While the?technology sector?ranked fifth overall, 90% of its deals were equity-based, which shows strong investor confidence.
• Southern Africa dominated 45% of deals, followed by East Africa (41%) and West Africa (33%).

Smaller markets are also carving their space, driven by renewable energy projects and localized agricultural investments. Compared to the Big 5, they rely more on debt financing.

As private capital flows reshape industries, the question remains: Can smaller economies scale up with the right policies and infrastructure? And what role will technology and renewable energy play in diversifying Africa’s investment story?

What’s your take? How can the gap between leading and emerging markets ensure equitable growth across the continent? Share your thoughts below.