Adam Gill, Search Consultant, Executives in Africa

Something significant is changing in how institutional money flows into African businesses, and at Executives in Africa we are seeing it land first in the assignments our clients bring us.

Private equity is under pressure

Private equity, long the dominant force in institutional investment across the continent, is genuinely struggling. Deal value in Africa fell 66% in the first half of 2024 compared with the same period the year before, according to the African Private Equity and Venture Capital Association. By the third quarter, PE had injected $1.9 billion, a 53% drop and well below the five year average of $4.2 billion. Research from the CAIA Association shows African valuation multiples fell roughly 50% over the decade to 2020, even as US and European multiples climbed. Persistent inflation, currency depreciation, and a narrow pool of investable businesses have made the model harder to run profitably.

Private credit is filling the gap

Private credit, by contrast, is growing quietly and consistently. British International Investment reported over 700% growth in private credit transactions between 2021 and 2022. In Q3 2024, while every other asset class saw value declines, private debt deal values across Africa grew 14%. By Q2 2025, deal volume was up a further 23%. Globally, Preqin forecasts the asset class will grow from $1.7 trillion to $2.6 trillion by 2029.

African businesses can access capital at 8% to 13% on senior secured products, well below the 13% to 18% commercial lending rates SMEs face in Kenya or the 27.25% benchmark rate in Nigeria. For lenders, the returns comfortably beat comparable instruments in other markets.

What this means for leadership

Private credit arrives with a very different set of expectations than equity. Lenders want monthly management accounts, covenant compliance reports, and audited financials produced on time in a format a credit committee in London or Amsterdam can sign off on. They want a CFO who understands what a lender needs to see and can produce it consistently. They want a CEO who communicates risk proactively, before it becomes a problem.

At Executives in Africa, this is reshaping the briefs we receive. The CFO search that five years ago centred on financial stewardship is now about institutional credibility. The CEO brief that prioritised regional market knowledge now demands the ability to manage sophisticated external capital relationships. The COO search hinges on whether the candidate truly understands what a reporting covenant means and can build an organisation that meets it.

The work ahead

Across our portfolio of founders, growth businesses, and capital providers, our team is placing leadership that meets this new bar. The businesses that build the right leadership infrastructure now will access capital on terms their competitors cannot match. The ones that wait for a lender to force the conversation will be under considerably more pressure.

The capital is already moving. The talent conversation needs to follow it.