The African Private Capital Association (AVCA) emphasized the need for heightened investment efforts to unlock the vast potential of the $2.3 trillion of domestic capital in Africa. This call was made during the AVCA 20th Annual Conference & VC Summit in Johannesburg, themed ‘Embracing Change and Shaping the Next Era of Africa’s Prosperity.’

The conference brought together institutional investors, fund managers, policymakers, global and local investors, and entrepreneurs, convening over 700 private capital leaders from more than 60 countries to strategize on powering Africa’s growth over the next two decades.

Abi Mustapha-Maduakor, CEO of AVCA, highlighted the resilience of Africa’s private capital industry despite recent macroeconomic challenges, asserting its continued growth trajectory.

Phuthuma Nhleko, Chairman and co-founder of Phembani Group, delivered a keynote address urging private investors to support innovative businesses to drive widespread prosperity. He emphasized the transformative potential of Africa’s demographic dividend, projecting a significant increase in population and youth demographic by 2050.

Tokunboh Ishmael, Co-founder and Managing Director of Alitheia Capital, noted the exponential growth witnessed in Africa’s private capital expansion during the second decade. While progress has been made, industry leaders such as Wale Adeosun, Founder and CEO of Kuramo Capital Management, and Vincent Le Guennou, CEO of Africa50’s Infrastructure Acceleration Fund, stressed the nascent nature of Africa’s private capital ecosystem and the need to tap into its immense potential.

Adeosun highlighted the benefits of attracting institutional investors from the U.S. into Africa, while Le Guennou advocated for adapting the traditional private equity model to the African context and proactively unlocking the $2.3 trillion of domestic capital over the next decade.

Furthermore, the role of pension funds in Africa as a crucial source of capital was underscored. Dieynaba Kamara, Partner and COO of Joliba Capital, emphasized the need for educating pension funds on investing in private equity, especially in Francophone Africa. John Owers, Director and Head of Funds Solutions at British International Investment, stressed the importance of a functioning private capital ecosystem that provides exit options for Limited Partners (LPs), highlighting the role of the secondary market in achieving this objective.

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