Private Capital Call

December 11, 2025

AFRICA INSIGHTS WEEKLY

December 11, 2025

📈 THIS WEEK'S KEY INSIGHTS

Infrastructure Investment Gap: Africa needs $155 billion annually to double GDP by 2040, requiring unprecedented private sector mobilization and regulatory reforms
Investment Hub Transformation: Mauritius emerges as Africa's leading PE market while COMESA captures record $65 billion in FDI, reshaping continental capital flows
Digital & Transport Infrastructure Boom: Major private investments in Ethiopia's telecom sector and South Africa's rail network signal growing confidence in liberalized infrastructure markets

🏗️ SPOTLIGHT: Infrastructure & Development

$155 Billion Annual Investment Could Double Africa's GDP by 2040

The Development:A joint OECD-African Union report reveals that scaling Africa's infrastructure investment to $155 billion annually—representing 5.6% of the continent's GDP—could accelerate economic growth by 4.5 percentage points per year and more than double Africa's GDP within 15 years.

The Scale:Currently, Africa invests only $83 billion annually (3% of GDP) in infrastructure, creating a $72 billion annual financing gap. Countries like Tanzania, Zambia, and Lesotho already demonstrate feasibility by investing over 5% of GDP. Between 2019-2023, African governments spent seven times more on debt servicing than infrastructure development.

Business Impact:High-return sectors including transport corridors, fiber-optic networks, and renewable energy offer potential returns up to 20% while enabling regional integration and global value chain participation. However, private sector investment remains limited at just 11% of total infrastructure funding despite strong return potential.

Investment Opportunity:

Infrastructure Investors: Transport, energy, and digital connectivity projects offer exceptional returns with continental growth alignment.
Development Finance: Public-private partnerships critical to bridge the $72 billion annual gap amid declining development aid.
Regional Integration: PIDA-aligned projects position investors in coordinated growth corridors.
ESG-Focused Capital: Sustainable infrastructure frameworks essential for long-term investor confidence.

🔗 Read Full Story

💰 INVESTMENT WATCH

Mauritius Displaces Nigeria as Africa's Top Private Equity Market

Mauritius surged to become Africa's leading private equity destination by deal value in 2025, reaching $1.25 billion despite completing fewer transactions than Nigeria. This strategic shift reflects the island's transformation into a premier financial hub with robust regulatory frameworks and tax efficiency attracting global investors amid broader African market volatility.

The rise signals a fundamental change where deal quality and jurisdictional advantages outweigh transaction volume. Mauritius' strong legal infrastructure, bilateral treaty network, and investor protections make it an increasingly attractive gateway for cross-border African PE investments, offering stability while broader markets face currency instability and geopolitical risks.

Investment Implications:Mauritius offers regulatory clarity, tax advantages, and strong investor protections, making it a preferred jurisdiction for structuring pan-African deals amid increased selectivity in mining, energy, and infrastructure sectors.

🔗 Read Full Story

🌐 MARKET OPPORTUNITIES

Angola Accelerates $73 Billion Privatization Program

Angola is fast-tracking privatization of 73 major state-owned enterprises under the PROPRIV 2023-2026 program, targeting strategic assets including Sonangol (oil) and Unitel (telecom) through IPOs and tenders. The initiative aims to diversify the oil-dependent economy while attracting foreign capital through improved transparency and legal reforms.

Priority sectors include power generation, particularly hydroelectric projects like Laúca, and railway modernization to boost regional integration. The program represents a fundamental shift toward private-sector-led growth supported by enhanced regulatory frameworks for competition and public-private partnerships.

Action Items:

Prepare for upcoming IPOs and tenders by building local partnerships.
Monitor regulatory developments closely.
Explore project finance opportunities in renewable energy and transport infrastructure aligned with government diversification goals.

🔗 Read Full Story

📊 QUICK HITS

South Africa Secures $200 Million Private Rail Investment

Traxtion's R3.4 billion investment in 46 locomotives marks historic private entry into Africa's largest rail network, creating 662 jobs with 60% local content requirements.

COMESA FDI Doubles to Record $65 Billion in 2024

Egypt's $150 billion Ras El-Hekma mega-project anchors surge as COMESA captures 67% of Africa's total FDI, positioning the region as major destination for international capital.

Standard Bank Commits $138 Million to Ethiopia's Digital Infrastructure

Partnership with Safaricom accelerates digital transformation as internet penetration rises from 15% to 19%, supporting 10.1 million active users across expanding telecom market.

📧 Forward this newsletter to colleagues interested in African business intelligence

🔗 Visit Africa Insights AI for detailed market analysis