NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Recent years have seen a step change in investment in the sector. Asoko’s database of deal activity in Africa records over 100 deals in the sector since 2015, covering both goods and services. Data from Africa Venture Capital Association, meanwhile, shows the sector taking a rising share of overall deal value on the continent, from 4% in 2018 to 12% in 2019 and 24% in the first half of 2020, the largest slice of the private equity (PE) pie in that period. The next decade is expected to see continued growth in healthcare investment as rising demand creates strong returns.

Even before the pandemic, healthcare has been attractive to Africa’s PE investors because of its favourable rates of returns and exit opportunities. Given Africa’s 1.3 billion-strong population and rising middle-class consumer base, consumer-focused sectors more widely are key areas of investment.