Africa’s private capital investments decline by over $1.5 billion in 2023
A farm worker walks next to a planter while planting soybeans on a farm in Balfour, South Africa, on October 20, 2021. Private capital investment has become more concentrated at the country level, with South Africa accounting for half of all African investment in 2023.
Private capital investments in Africa have fallen significantly amid limited opportunities in fields beyond infrastructure, owing to difficult macroeconomic conditions and forex problems on the continent.
A new report says these investments fell by 23 per cent to $5 billion in 2023, a drop from $6.5 billion a year earlier. It means private capital investments in Africa were the lowest since Covid-19, a feature seen across most major asset classes, except for infrastructure.
