Private equity exits across Africa surged 42% to reach $4.8 billion in 2025, marking the strongest year for realizations since 2019 and delivering average returns of 18.2% to investors the highest level in eight years, according to data from the African Private Equity and Venture Capital Association (AVCA).
The robust exit environment was driven by a combination of strategic acquisitions by multinational corporations, successful initial public offerings, and secondary buyouts as institutional investors increased their appetite for African assets amid improving macroeconomic conditions across key markets.
Record-Breaking Transactions Drive Activity
The year’s largest exit came from Helios Investment Partners’ $680 million sale of its stake in Nigerian fintech platform Interswitch to Visa Inc., representing a 3.2x multiple on invested capital. This transaction alone accounted for 14% of total exit value across the continent.
“We’re seeing a fundamental shift in how global corporates view African assets,” said Babatunde Soyoye, Managing Partner at Helios Investment Partners. “The strategic premium for quality African businesses with regional scale has never been higher.”
Other notable exits included Actis Capital’s $420 million sale of East African logistics company Twiga Foods to Amazon, and Development Partners International’s $380 million exit from South African renewable energy developer Solar Reserve Africa through a secondary buyout to Infrastructure Credit Alpha.
IPO Market Shows Signs of Recovery
Public market exits contributed $1.2 billion to total realizations, with 11 private equity-backed companies completing IPOs across Lagos, Johannesburg, and Casablanca exchanges. The standout performance came from Egyptian e-commerce platform Jumia’s spin-off of its fintech division, which raised $340 million in a dual listing on the Nigerian and Egyptian stock exchanges.
“The IPO window has reopened meaningfully for the first time since 2021,” noted Sarah Devereux, Head of Africa at emerging markets research firm Renaissance Capital. “Local institutional investor demand has strengthened considerably, supported by pension fund reforms in Nigeria and South Africa.”
The average time to exit decreased to 4.8 years from 5.6 years in 2024, indicating more efficient capital deployment and value creation strategies among fund managers.
Sector Performance and Geographic Distribution
Financial services dominated exit activity with $1.6 billion in realizations, representing 33% of total value. Technology and telecommunications followed with $980 million (20%), while healthcare and consumer goods each contributed approximately $650 million.
South Africa led geographic distribution with 35% of exit value, followed by Nigeria at 28% and Kenya at 15%. However, the most significant growth came from francophone West Africa, where exit values increased 180% year-over-year to $480 million, driven primarily by Carlyle Group’s sale of Moroccan logistics company TIMAR.
“The diversification of exit activity across sectors and geographies demonstrates the maturation of Africa’s private equity ecosystem,” said Abi Mustapha-Maduakor, CEO of AVCA. “We’re no longer dependent on a handful of large transactions in traditional sectors.”
Fund Performance Metrics Improve Significantly
Vintage 2018-2020 funds showed particularly strong performance, with median internal rates of return reaching 22.4% for funds that had meaningful exit activity in 2025. This compares favorably to 14.8% for similar vintage global emerging market funds and 16.2% for developed market private equity funds over the same period.
Total value to paid-in (TVPI) multiples averaged 1.8x for funds with active exits, indicating healthy value creation despite the challenging macroeconomic environment of recent years.
Looking Ahead: Sustained Momentum Expected
Industry participants expect continued momentum into 2026, with $2.1 billion in exits already in advanced stages of negotiation according to AVCA data. The pipeline includes several potential billion-dollar transactions in telecommunications and infrastructure sectors.
However, currency volatility remains a concern, with naira and cedi depreciation impacting dollar-denominated returns for some exits. “Fund managers are increasingly implementing sophisticated hedging strategies to protect returns,” observed John Donnelly, Partner at EY’s Africa Private Equity practice.
For policymakers, the strong exit environment validates ongoing capital market reforms and suggests continued foreign investment inflows. For investors, the data indicates African private equity has entered a more mature phase, with established exit pathways and competitive returns supporting the asset class’s long-term investment case.
