Africa's Private Capital Market Sees Mixed First-Half in 2026

Africa's private capital market posted a mixed first half in 2026. Deal volume fell 16% year on year to 211 transactions, the first H1 drop since 2023. Investment value rose 65% to $3.7 billion, the second highest first-half total in five years. The gap between average deal size, $32 million, and median deal size, $5 million, points to a market driven by a few large transactions rather than broad growth.

Venture capital deal count fell 34% to 102, the lowest H1 level since 2020. It still made up 48% of deal volume and 43% of deal value. Three deals above $250 million accounted for 40% of capital deployed, almost four times the 2025 figure. Private equity deals rose 22% to 71, and private debt deals rose 8% to 26, with debt investment value reaching a record $0.6 billion.

Financials, mostly fintech, lost its lead position for the first time in recent years. Business services and energy took over half of capital deployed. AgriTech and HealthTech deal activity increased, pointing to a shift beyond fintech.

West Africa led in deal count with 59 transactions. North Africa led in deal value at $1.1 billion, on renewable energy and manufacturing deals. Southern Africa lost its position as the largest market by value, with investment down 52% to $0.5 billion. East Africa passed Southern Africa in value on one large electric vehicle deal.

Fundraising reached $1.3 billion across 13 funds, down 9% from H1 2025, but the number of funds closed almost doubled from 7. Average time to close fell to 1.8 years from 2.7 years. Exits held at 34, with trade sales making up 53%, nearly double last year's share, led by domestic buyers.