How Africa is a rewarding prospect for patient and innovative investors
From humble beginnings, private-equity investing in Africa has become a popular theme among global investors. The challenges of committing capital to the continent were highlighted by the fall in commodity prices from 2014 to 2016 — which caused currency devaluation and an economic slowdown in many African states — and the difficulties foreign investors had in repatriating hard currency from countries such as Nigeria and Zimbabwe. But while caution is healthy, there are many exciting and fruitful opportunities in this space, particularly for those prepared to entertain a broad opportunity set and take the time and effort required to make investing in Africa a successful venture. One such opportunity set is in small and mid-sized companies (SMEs) in Africa, particularly family ones. African SMEs stand to benefit greatly from the more professional approach to managing their businesses as well as the opening up of untapped markets that private equity firms can engender. Private-equity ...
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