Why firms are struggling to raise fresh capital in Africa
Private capital covers funds raised through instruments that are not publicly traded, including private equity (PE) and venture capital (VC). PHOTO | SHUTTERSTOCK
The amount of private capital companies in Africa raised declined by nine percent to $1.9 billion in 2023, the second-lowest fundraising for final closed funds in 11 years, highlighting the difficulties that businesses are facing in raising fresh capital for growth and expansion on the continent.
This is as a result of the volatile macroeconomic conditions hurting the operations of companies, including rising interest rates, soaring inflation, depreciating currencies and dwindling forex reserves, according to a new report.
