November 18, 2017

Exploring private equity activity in Nigeria, Africa

Exploring private equity activity in Nigeria, Africa
/

Avanz Capital, an investment firm that specialises in private equity across emerging and frontier markets in collaboration with African Venture Capital Association (AVCA), recently released a new study on the private equity market in Africa.

Private equity refers to the purchase by a private investor of a share of a company that is not listed on a stock market.

The company invested in, can then take the money from the sale and use it for expansion or other investments. In exchange, the owner gives up some control, as the new partner gets a seat on the board or, in smaller companies, plays an advisory role.

Eventually, investors make money by selling their shares or receiving dividends.

Exploring private equity activity in Nigeria, Africa

Exploring private equity activity in Nigeria, Africa

Often referred to as the ‘final frontier’ market by private equity investors, Africa is showing signs of promise due to its rapidly improving economic environment, favourable demographics and growing private sector business activities.

According to Avanz Capital, the underpenetrated private equity industry in Africa offers substantial growth potential, given that sub-Saharan Africa private equity represents only 0.09 percent of total gross domestic product (GDP) for the region.

CLICK SOURCE FOR MORE

IMAGES: www.bbc.co.uk / www.worldbank.org

Comments are closed.