Driving Pan-African private equity investments

Africa, long striving to draw in parallel levels of capital inflows as other emerging markets, is focusing on driving more pan-African investments to pave the way for economic growth on the continent. In a recent interview with CNBC Africa, Marlon Chigwende, the Managing Partner at Admaius Capital Partners, shed light on the current state of private equity investment in Africa and the experiences his firm has had in this space. Chigwende highlighted that the private equity sector in Africa has seen lower fundraising levels in recent years, outshone by the vibrant venture capital scene. While some developmental institutions have been supportive, attracting more commercial funds remains a key goal for the future. Admaius Capital Partners, having been based in Rwanda for the past three years, has found the environment to be welcoming and conducive for business, with a range of successful investments made across different sectors and geographies. The firm's 'Virunga Fund' has been instrumental in financing seven diverse investments, spanning East, West, North, and South Africa. These investments cover sectors like fast-moving consumer goods, fintech, telecommunications, and mining services. With a typical holding period of around five years, Admaius Capital Partners aims to foster growth, create value, and eventually realize returns on their investments within this timeframe. One of their recent ventures includes the acquisition of Particle Group, a market leader in certified reference materials across Africa and globally, showcasing the potential for African management teams to excel on a broader scale. The firm's investment in Tres, a mobile tower company in Rwanda, underscores their commitment to supporting the country's infrastructure development, particularly in expanding mobile network coverage and advancing technologies like 3G, 4G, and 5G. Navigating the policy and regulatory landscape across various African markets, Chigwende commended Rwanda for its business-friendly policies and efficient implementation, making it an attractive investment destination. While other markets are also progressing in terms of policy clarity and execution, he emphasized the role of favorable policies in attracting more investments, both from private equity firms and other sectors. Looking ahead, Admaius Capital Partners aims to continue identifying opportunities, crafting solutions, and investing alongside management teams to drive growth and development. With a strategic focus on Pan-African investments and a commitment to creating value across the continent, the firm remains optimistic about the future of private equity in Africa. By leveraging strong partnerships, tapping into emerging market trends, and staying attuned to regulatory environments, private equity firms like Admaius Capital Partners are poised to play a pivotal role in driving economic transformation and sustainable development in Africa.