AVCA Yearbook 2006
[pounds sterling]200 AVCA
ISBN: 10: 0-9551648-4-2
The African Venture Capital Association (AVCA) is a not-for-profit entity founded to promote, develop and stimulate private equity and venture capital in Africa. It now has 90 members from 23 countries and its headquarters is in Yaounde, Cameroon. This is the second time that AVCA has published its Yearbook.
One of the key findings of AVCA's research is that an increasing focus on later stage private equity investments in Africa is creating an early stage funding gap. Almost two thirds of funds raised were for later stage investment.
Other highlights of the research indicate that the total amount of private equity funds raised in Africa declined by 42.7% in 2005 to $557m, compared to $971.8m in 2004, with the highest proportion of funds raised by South Africa. Furthermore, 37.8% of capital in 2005 was provided by government and aid agencies totaling $210.5m, compared to $45.6m in 2004 representing 4.7%.
Levels of overall private equity investment in Africa fell by 27% in 2005 to $948.3m, compared to $1.3bn in 2004. South Africa recorded the highest level of investment activity accounting for 81.6% of the total volume of investments.
Commenting on the research, Barbara James, managing director of AVCA, says "Whilst early stage investment has dominated the volume of investment activity in...