Consumer staples, financials, consumer discretionary, and industrials dominate private capital in Francophone Africa, capturing 68% of all investment volume since 2012

Key takeaways:

  • The consumer staples sector attracted the highest private capital volume with 69 deals.
  • The financial sector shows strong traction, especially as digital finance and fintechs continue to open access to banking services in underserved markets.
  • Fifty-five deals in the consumer discretionary category suggest investors are interested in rising middle-class consumption, retail, and lifestyle-driven spending patterns.
  • At 50 deals, industrials, including manufacturing and infrastructure, remain a backbone for private capital.
  • Healthcare (24 deals) and utilities (37 deals) reflect increasing investor focus on sectors with long-term impact and scalable public value.

Private capital in Francophone Africa has followed a clear pattern over the past decade, favouring a handful of critical sectors. Since 2012, four sectors—Consumer Staples, Financials, Consumer Discretionary, and Industrials—have soaked up 68% of all investment volume, showing investors’ strong preference for foundational and revenue-generating industries.

Source:

AVCA

Period:

2012 - 2024
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Francophone African companies attracted $1.8 billion in private capital in 2021, the highest amount in the past 12 years
  • Francophone Africa attracted $1.8 billion in private capital in 2021, about 9x the previous year (2020).
  • That same year saw 34 deals, which is quite high when compared to some other years, indicating strong investor confidence.
  • In 2024, deal value amounted to just $0.1 billion, and deal volume to 19, pointing to a significant cooling in activity.
  • Between 2012 and 2015, the region saw low deal values, with both 2014 and 2015 recording just $0.01 billion in investments.
  • A notable spike occurred in 2017 with $0.7 billion invested across 17 deals, marking the first major surge before 2021's breakout.
  • Deal counts haven’t always aligned with capital volume. For instance, 2023 had 42 deals but only $0.4B, suggesting a trend of smaller-sized investments.
Tech-enabled firms drove 71% of deal volume in Francophone Africa in 2021, the highest contribution so far
  • The breakthrough year for tech in Francophone Africa was 2021, with 71% of deal volume going to tech-enabled firms, an all-time high.
  • The growth of tech began slowly, from 0% in 2015 to just 12% in 2017, showing how recent the tech surge is.
  • Between 2018 and 2020, tech’s share gradually rose from 15% to 27%, setting the stage for the explosive growth of 2021.
  • Post-2021, tech dominance slightly softened—holding 52% in 2022, 50% in 2023, and 63% in 2024 H1, suggesting a more balanced diversification.
  • The last year traditional sectors led in deal volume was 2020, accounting for 73%, right before tech flipped the narrative.
Since 2012 up to mid-2024, Francophone Africa has had 76 exits, peaking at 13 in 2019
  • The peak year was 2019 with 13 exits, marking the most successful exit year since tracking began in 2012.
  • Zero exits occurred in 2020, likely reflecting the impact of the COVID-19 pandemic on exit strategies and deal closures.
  • The years 2021 and 2022 saw a rebound, with 11 and 10 exits respectively, suggesting a recovery in investor confidence post-pandemic.
  • Slower exit activity was recorded in 2023 and early 2024, with 6 and 3 exits, respectively (2024 is as of H1).
  • From 2012 to 2016, annual exits ranged between 3 and 4, except for a spike in 2013 with 10 exits.
  • The overall average exit volume is low, with fewer than 7 exits per year on average across the 12 years.
Five countries account for 52.6% of Francophone Africa's (29 countries) private capital transactions value between 2012 and 2024
  • With $1.2B in deal value (25%), Côte d’Ivoire stands far ahead, signalling strong investor confidence.
  • At $697M (14.5%), Senegal is proving itself as a rising investment star.
  • Despite being a small economy, Rwanda drew $166M (3.5%).
  • DR Congo attracted $143M (3.0%), a modest share relative to its size.
  • Twenty-four Francophone African countries collectively received 47.4% ($2.3B) of the deal value, suggesting huge untapped or underserved markets across Francophone Africa.
Kenya accounts for 83.8% of the total startup funds secured in East Africa from 2019 to 2024
  • Kenya is the absolute leader in startup funding, with $3.3 billion raised in the past six years.
  • The rest of East Africa is way behind, with Tanzania ($286M), Uganda ($183M), and Rwanda ($91M) being the next in line. But collectively, they don’t even match 20% of the funding Kenya received.
  • The total funding raised across East Africa from 2019 to 2024 is $3.94 billion, which means Kenyan startups alone secured more than 8 out of every 10 dollars invested in the region.
  • Investor confidence is highly concentrated in Kenya, largely due to its well-developed venture capital ecosystem, startup accelerators, and government support for innovation.
Over the past six years, Kenya has secured an average of 81% of the total funding available in East Africa
  • Kenya dominates East Africa’s startup funding, securing over 83% of all funds raised between 2019 and 2024 — a clear indication of its position as the region’s startup capital.
  • Kenya’s startup funding share has remained consistently above 80% since 2020.
  • 2023 and 2024 saw Kenya secure nearly 89% of all funds, marking its strongest position.
  • Other East African countries combined have not received more than 30% of the funding in any year since 2019.
  • The lowest share of funding Kenya secured was in 2019 (69.81%).
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