27 Jun

Private equity looks to East Africa for investment opportunities

Buyout groups investing in Africa are turning east and shunning the oil-rich western part of the continent as they grapple with the effect of low commodity prices on private equity’s final frontier.

In the decade before oil prices plummeted, west Africa — particularly Nigeria — was the most attractive region on the continent for global private equity groups from Carlyle to Actis looking to tap the potential of the “emerging African consumer”.

But with Nigeria in economic recession for the first time since 1991, investors say they are looking elsewhere on the continent for deals in sectors from consumer goods to healthcare.

Read more: Private equity looks to east Africa for investment opportunities