A new report has revealed that Nigeria, along with four other African nations, accounted for 85% of the continent’s private sector deals in recent years. This highlights the concentrated nature of private investment activity in Africa, with the majority of deals taking place in a handful of countries, despite the vast opportunities across the continent.
The report, which tracks private sector investments and mergers and acquisitions (M&A) in Africa, identified Nigeria as the leading country, contributing significantly to the continent’s private sector deal flow. The four other countries—South Africa, Egypt, Kenya, and Morocco—also played pivotal roles in attracting the bulk of private investments.
These nations have been seen as key investment hubs due to their relatively stable economies, established business environments, and significant consumer markets. Nigeria, in particular, remains a major investment destination due to its large population, abundant natural resources, and growing tech sector. The country has become a focal point for both foreign and domestic investors seeking opportunities in energy, agriculture, fintech, and infrastructure.

According to the report, Nigeria’s dominance in the private deals landscape is driven by its oil and gas sector, as well as a burgeoning tech industry, which has attracted considerable investment in recent years. The country has also seen a rise in venture capital deals, especially in the tech startup space, positioning it as a key player in the continent’s growing digital economy.
South Africa and Egypt have also maintained strong positions in the report, thanks to their diversified economies and well-established industrial sectors. South Africa, with its developed financial markets and robust infrastructure, continues to be an attractive destination for private equity and corporate investment. Egypt, on the other hand, has benefited from economic reforms and strategic investments in infrastructure, making it an increasingly popular destination for private sector deals.
Kenya and Morocco round out the top five, both of which have emerged as important regional hubs for trade, technology, and industrial investments. Kenya, with its growing digital economy and strategic location in East Africa, continues to attract investors looking to capitalize on its thriving startup ecosystem. Morocco, as a gateway to North Africa and Europe, has seen increased investment in renewable energy, automotive manufacturing, and logistics.
The report also highlighted that despite the impressive share of deals handled by these five countries, the majority of other African nations are still facing challenges in attracting private investments. Factors such as political instability, poor infrastructure, limited access to financing, and regulatory hurdles continue to deter potential investors from exploring opportunities in several parts of the continent.
The report underscores the need for broader economic reforms across Africa to ensure that more countries can unlock their potential and attract investment. It calls for improvements in governance, infrastructure, and access to financing, as well as stronger regional integration to make the entire continent more attractive for private sector deals.
While the concentration of deals in a few countries may reflect the realities of Africa’s business environment, the report suggests that diversifying investment flows across the continent could lead to more inclusive and sustainable economic growth. To this end, African governments and regional institutions must work to create more conducive environments for private investments, particularly in sectors such as agriculture, renewable energy, and manufacturing.
As Africa’s population continues to grow and its middle class expands, the report concludes that private sector investment will play a crucial role in driving the continent’s long-term economic development. However, a more balanced distribution of investment across countries will be essential for ensuring that the benefits of growth are widely shared and that no nation is left behind in the pursuit of a prosperous future for Africa.
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