Kenya emerged as one of Africa’s most active private capital markets in 2025, ranking third on the continent, according to the 2025 Private Capital in Africa Activity Report by Stears Information Limited.
- •The “Big Five” markets accounted for the overwhelming majority of deal flow last year : South Africa represented 25% of all private capital transactions, followed by Nigeria with 23%, Kenya with 19%, Egypt with 14%, and Ghana with 11%.
- •Private capital in 2025 remained concentrated in a handful of dominant sectors, with Financial Services solidifying its lead by accounting for 27% of deals, up sharply from 17% in 2024.
- • Information Technology and Consumer Discretionary followed with 16% and 14% of activity, highlighting growing investor confidence in technology-enabled businesses and consumer-facing platforms.
“Uganda and Tanzania each accounted for 9% of total transactions, ranking among the most active markets outside the continent’s largest economies. However, this activity was driven largely by regional-level investments, where companies operate across multiple East African markets,” the report added.
More broadly, North African markets continued to perform strongly on a single-country basis. While Morocco accounted for 8% of total transactions, slightly below Uganda and Tanzania in overall deal share, it captured 5% of all single-country deals, more than double Ghana’s 2% share of standalone investments.
The figures point to Morocco’s strength as a self-contained investment destination, where deals are more often underwritten on domestic market fundamentals rather than regional growth strategies.
South Africa recorded the highest share of single-country transactions at 16% of all deals, while Egypt ranked second with 11%, narrowly ahead of Nigeria, also at 11%.
The wider private capital market showed signs of stabilising after the surge in venture and growth financing seen earlier in the decade. Africa recorded 705 private capital transactions worth US$27.3 billion in 2025, only slightly below the 734 deals valued at US$28.7 billion recorded a year earlier.
The data suggest the continent’s investment landscape has shifted from the rapid fundraising cycles of recent years toward a more structured phase marked by consolidation, strategic acquisitions, and increasing use of alternative financing.
The Structural Shift
By contrast, traditionally asset-heavy sectors such as Energy and Industrials lost relative share, as investors move from capital-intensive projects toward more agile, growth-oriented opportunities. Overall, the top three sectors accounted for 52% of all deals, up from 28% in 2024, as investors are increasingly backing sectors poised for resilient returns rather than chasing breadth across the market.
More than half of all transactions were valued below US$10 million, with roughly 27% under US$2.5 million. Equity remained the dominant funding source, accounting for about 57% of deals, but debt financing overtook mergers and acquisitions by deal count, particularly in agriculture, consumer staples, and energy.
The trend reflects the growing role of private credit as companies seek alternatives to traditional bank lending amid volatile currencies, tighter liquidity conditions, and slower exit opportunities.
Development finance institutions continued to shape Africa’s private capital landscape in 2025, with the International Finance Corporation (IFC) leading in deal volume and ranking second in deal value behind British International Investment (BII). Other DFIs that catalyzed private investment were Norfund, the African Development Bank (AfDB), and the FMO.
