The future of African private equity & venture capital: Key insights from AVCA Conference 2025

This year’s AVCA Conference served as a powerful reminder of Africa’s growing prominence in the global venture capital and private equity landscape. Throughout several panels, industry leaders explored the challenges, opportunities, and innovations shaping investment across the continent. As active participants in this ecosystem, we walked away with 5 key insights:

Insight 1: Persistence and differentiation – a winning strategy for Africa’s fundraising landscape

Fundraising in Africa remains a formidable challenge, often described as “soul-crushing” by seasoned investors. Yet, the panelists agreed that persistence, clarity, and resilience are non-negotiable for success. Limited Partners (LPs) are no longer passive check-writers; they actively seek funds with strong teams, local market knowledge, and well-articulated strategies. Impact is no longer a nice-to-have—it’s a critical component of value propositions, especially for Development Finance Institutions (DFIs) and corporate foundations.

Insight 2: Where is capital flowing? Sectoral shifts and new opportunities

Discussions at the conference highlighted a clear trend: investors are moving away from vanity metrics and unsustainable growth models, instead prioritizing capital efficiency and tangible value creation. Sectors like AI-driven healthcare, B2B platforms serving informal businesses, and fintech solutions that enable commerce are attracting significant interest. The rise of “soon-icorns”—startups focused on revenue and sustainability rather than billion-dollar valuations—reflects a healthier, more pragmatic approach to scaling in Africa’s complex markets.

Insight 3: The LP perspective: Risk, diversification, and building trust

One of the most illuminating discussions centered on the evolving mindset of Limited Partners (LPs). Geographic and sectoral diversification are now top priorities, alongside innovative tools to mitigate currency and liquidity risks. Proparco’s approach of allocating “small buckets of capital” to emerging managers and Visa Foundation’s hybrid impact-commercial model stood out as examples of how LPs are becoming more creative—and more hands-on—in their partnerships.

Insight 4: Venture debt and alternative financing: Africa’s untapped potential

While venture debt is still nascent in Africa compared to markets like the U.S. or Latin America, the panel on this topic revealed growing interest—and unmet demand. High-growth companies with predictable revenues are ideal candidates, but cultural aversion to debt and refinancing risks remain hurdles. The key takeaway? Venture debt won’t replace equity, but it can be a powerful tool for scaling capital-efficient businesses.

Insight 5: Macro winds and tailwinds: Africa’s cyclical moment

Charles Robertson’s macroeconomic outlook offered a compelling case for optimism. After a decade of underperformance, emerging markets—and Africa in particular—are poised for resurgence. A weakening U.S. dollar, declining global interest rates, and improving fundamentals create a favorable environment for investment. While structural challenges like electricity access and high borrowing costs persist, the long-term trajectory is undeniably promising.

The conversation has moved from “why invest in Africa?” to “how to do it well.” And that’s where we at CrossBoundary are doubling down. Our on-the-ground presence in underserved markets enables us to serve clients, whether it’s in building a bankable pipeline or designing innovative fund structures. Our work is rooted in building trust and enabling smart, scalable capital deployment.

We’re proud to be part of this evolution—bridging the gap between capital and opportunity, between global ambition and local execution. Africa’s investment story isn’t just one of growth—it’s one of maturity. The next chapter won’t be about chasing unicorns or hot sectors. It’ll be led by those who can structure opportunities thoughtfully, align incentives creatively, and navigate complexity with clarity. That’s the connective tissue CrossBoundary brings—and we believe it’s the most critical ingredient for unlocking Africa’s full investment potential.