Private financing flows involving African entities have been projected to exceed the 2022 record of $19.8bn, having hit $19.2bn on November 10.
According to data from the Ecofin Pro Transaction Journal, which has been collecting and storing information on private financing in Africa (excluding bank credit and financial markets), since 2017, a total of $19.2bn in private financing flows have been recorded as of November 10, 2023.
The journal revealed that that would be a new record for Africa since 2017 when it began tracking private finance on the continent.
It was also stated that the number of annual transactions had hit 940 as of November 10, which exceeded the figures for 2020 to 2022, but lower than the 2019 record, which was 1,071 transactions.
An analysis of the data showed that the median value, which represents the central value of transactions when ranked in ascending order, has exceeded $3m in 2023, a level which has not been reached since 2017, when the average value of private financing flows was $3.5m.
Additionally, this year has witnessed a record 470 transactions exceeding this median value, compared to 360 six years earlier.
According to the firm, the number and total value of transactions exceeding $100m remain high. It stated that as of the last data collection date, 2023 already had 38 deals worth more than $100m, which was fewer than the 48 recorded in 2022.
However, the rate of growth in the value of transactions showed signs of slowing down after 2021 and 2022, which were considered post-COVID-19 recovery years.
Factors such as rising interest rates in developed markets, the effects of the Ukrainian crisis on food prices, and consequently, the interest rate policies of African central banks, have been projected to be some of the reasons for the moderation in the growth of transactions on the continent.
