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Africa has always been a minnow in the global private equity pond. But fundraising levels this year have been particularly low, with just four closes of Africa-headquartered funds.

The $55 million Joliba Capital Fund I of Ivory Coast was the biggest vehicle to close in the region, which typically sees 10 to 15 fund closes in any given year.

The continent's economies have been hit particularly hard by global headwinds including the war in Ukraine, which has created major food security challenges and energy price hikes. This is making investment in African countries, already a niche, even more challenging. LPs have generally been seeking safer opportunities in funds investing in more predictable markets.

The largest-ever African PE fund (by which we mean an African-headquartered fund that also invests in Africa—excluding foreign vehicles that are domiciled in the region, but do not invest in it) is Pamodzi Resources Fund I, which closed in 2007 at $1.3 billion. Helios Investors IV fund is the largest to have closed within the last two years at $1 billion. Its manager, Helios Investment Partners, is African-focused and has investments in more than 30 countries.

South Africa is by far the most-represented country in private equity fundraising on the continent, home to seven of its 10 biggest-ever funds, followed by Nigeria.  
The two countries have been battling for the title of Africa's largest economy since 2014, when Nigeria's statisticians rebased its GDP figures resulting in a major uplift and pushing it into the top spot for the first time. Since then, they have switched places a couple of times, with Nigeria currently holding the top spot according to IMF data, with Egypt in third position.

South Africa has been far less dominant in more recent fundraising. Funds headquartered in Egypt and Tunisia are also represented in the 10 biggest to have closed since 2018.   
Featured illustration by MarcelC/Getty Images

This article originally appeared on PitchBook News