AVCA’s Mustapha-Maduakor on how to deepen capacity for Africa’s investment managers

The African Private Equity and Venture Capital Association (AVCA) is on a mission to increase the capacity of African institutional investors and deepen market depth. Abby Mustapha-Maduakor, CEO of the African Private Equity and Venture Capital Association, joined CNBC Africa to shed light on the state of private equity on the continent and discuss the initiatives being undertaken to achieve these goals. Mustapha-Maduakor highlighted the establishment of the Afro Academy, aimed at providing foundational knowledge and continuous professional development to fund managers, institutional investors, and advisors operating in Africa. This initiative seeks to address the existing gaps in the market and support stakeholders through various aspects of the investment journey, from fundraising to exits. Financial education emerges as a crucial element in advancing financial inclusion, particularly in the post-pandemic era. Looking at the broader impact of COVID-19 on the private equity space in Africa, Mustapha-Maduakor noted a decline in fundraising and deal execution in 2020, with fund managers prioritizing existing portfolios over new investments. However, there has been a resurgence in deal activity in 2021, indicating a gradual recovery from the effects of the pandemic. The key sectors attracting investment interest in Africa include financials, industrials, consumer discretionary, with a notable focus on financial technology and renewable energy. Additionally, digital infrastructure and technology-enabled businesses are gaining traction, pointing towards a shift in investment trends towards technology-driven sectors. Mustapha-Maduakor's insights provide valuable perspectives on the evolving landscape of private equity investments in Africa and the strategies being employed to deepen the capacity of investment managers across the continent.