Does Sub-Saharan Africa require a new private equity model: a case study of South Africa and Nigeria

Abstract

Private Equity in Sub-Saharan Africa has grown significantly over the last decade. This growth was supported by an improved middle-class, macroeconomic factors, infrastructure and foreign direct investments. The case study provides an overview of Private Equity in Sub-Saharan Africa by focusing on South Africa and Nigeria. Where lessons from developed nations underpin the opportunity for Sub-Saharan Africa government policy makers to provide progressin the depth of capital markets, regulatory and governance of firms, investor protection and access to public information. Though my study is an empirical paper, the need for further research is required for the Private Equity market in Sub-Saharan Africa to become robust, enable massive inflow of capital and create an optimistic business environment for institutional investors.