evidenced by an uptick in secondary deals and smaller-scale mergers and acquisitions. According to a new African liquidity index, there have been 37 startup and scale-up exits by fund managers in 2025, with 22 of these exits resulting from trade sales and 40.5% involving international buyers.
Presented by the African financial data firm Stears at the Africa Prosperity Summit in Lagos, the index reveals that only 16.2% of exit values were disclosed, highlighting continued opacity in Africa’s private markets. The average holding period before exits occurred was 6.2 years, with Nigeria leading the way with seven exits, followed by South Africa and Egypt, each with six.
The consumer goods and services sector emerged as the most active, accounting for nine of the exits. The index, which spans data from 2015 to 2025, offers a comprehensive view of liquidity trends, exit classifications, and both realized and unrealized returns. It aims to address long-standing gaps in transparency that have previously hindered fund managers and founders alike.
“This has been many years in the making,” said Michael Famoroti, Co-founder and Head of Research at Stears, in an interview with FORBES AFRICA. “Venture capitalists (VCs) and limited partners (LPs) have been asking the same questions: Where are the exits? When are the exits? How are the exits? The ecosystem has now matured enough for us to tell a clearer story.”
Famoroti acknowledged that a lack of data-sharing culture had previously constrained market insight. However, his firm hopes that anonymized data aggregation will encourage greater participation from fund managers.
While the index suggests liquidity conditions have shown improvement over the past 12 to 18 months, they remain limited. According to Famoroti, exit routes continue to be “too narrow,” with secondary transactions under-reported and limited buyer depth from both strategic and financial investors.
“We expect progress in the coming years, including more active local corporate acquirers and greater participation from international funds,” Famoroti added. “We also hope that public markets will become viable exit pathways for African startups.”
Despite these improvements, analysts highlight that economic shocks in key markets such as Nigeria and Egypt have dampened exit activity. The industry is betting on increased collaboration across funds, which could accelerate exits as portfolios mature and LPs push for returns.
