African private capital fundraising has fluctuated over the past five years, reflecting adjustments to global liquidity conditions and a more cautious LP community, alongside macroeconomic pressures in Africa.
After 2019, fundraising momentum became far more uneven than in earlier years. In 2020, total capital raised fell sharply to $1.1 billion, mirroring the global retreat from liquidity as the COVID-19 pandemic triggered widespread market uncertainty and risk aversion. Investors focused on preserving capital, leading to a temporary pullback from emerging markets and private capital investments. The upswing that followed in 2021, when fundraising climbed back to $4.4 billion, was driven by recovery optimism and the release of pent-up demand as global economies reopened and fiscal stimulus buoyed markets. However, this surge proved short-lived. By 2022, total fundraising had slipped to $2 billion, as rapid global monetary tightening in response to rising inflation and interest rates created a more cautious investment environment.
