The Environment Is Improving for Private Equity in the Southern Mediterranean

The demographic and employment challenges facing the African continent as a whole can only be addressed through the development of the private sector. Specifically, through the creation of new enterprises as well as the development of existing ones, whether they are start-ups, SMEs, or large established groups.

The core financing offer for African companies, traditionally provided through the sole banking sector, has seen the emergence of new financing channels over the last two decades, such as microfinance for start-ups (which has grown spectacularly thanks to digital technology), private equity funds and more recently venture capital.

The tangible achievements of several key private equity and venture capital players operating in Africa in terms of value creation and economic, social and environmental impact are now clearly established. These results should maintain the confidence of bilateral and multilateral development institutions, as well as the attention of African and European institutional and private players, in this industry.