Private equity funds drive investment into Nigeria

Africa-focused private equity firms are fast becoming strong vehicles of investment into the
continent’s market. A recent research report by Preqin, an independent research firm focusing
exclusively on alternative assets, showed that increasingly, Development Finance Institutions (DFIs)
are allocating a certain percentage of their investment portfolios to African private equity firms on a
regular basis.

Top DFIs with increasing investment in Africa include: the World Bank’s International Finance
Corporation (IFC), the Overseas Private Investment Corporation (OPIC), the UK’s CDC Group and
Germany’s DEG.

Business Day research shows that in the 2010 fiscal year alone, IFC increased its investments in sub-
Saharan Africa to $2.4 billion for its own account from $1.8 billion the previous year, surpassing
the $2 billion mark for the first time, according to information obtained from the IFCs website. This
represents 42 per cent of the IFC’s $5.7 billion in new loan commitments globally.

Two Nigerian banks – GT Bank and First Bank of Nigeria plc benefited from the IFC investment
in 2010. GT Bank plc got $200 million in long-term funding; while First Bank got a $100 million in

Author: nmmin

Share This Post On