Business confidence, less exposure to global turmoil and strong regional trading bloc puts East Africa ahead of South and West Africa

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A new survey by Deloitte Consulting shows in comparison with South Africa and West Africa, PE executives polled cited East Africa’s higher growth potential, more business confidence, less exposure to global turmoil and the benefits of a strong regional trading bloc as key lures.

 

As such, more private equity firms are set to open shop in East Africa in 2012, attracted also by a growing young and urban population.

 

New East Africa-focused funds are targeting high-growth small and medium enterprises in consumer-driven sectors.

 

Investors are also increasingly exploring deals in new markets in Ethiopia, South Sudan and the Democratic Republic of Congo.

 

Activity is expected to be mainly in infrastructure, real estate, health care, agribusiness and green energy.

 

Researchers at Deloitte, however, found that venture capital funding is still scarce save for Kenya which has begun to stand out as an ICT hub.

 

Investors are also increasingly exploring deals in new markets in Ethiopia, South Sudan and the Democratic Republic of Congo.

 

Activity is expected to be mainly in infrastructure, real estate, health care, agribusiness and green energy.

 

Researchers at Deloitte, however, found that venture capital funding is still scarce save for Kenya, which has begun to stand out as an ICT hub. Click here to read more