The African Private Capital Association (AVCA) said venture-backed exits reached a record high in 2025, signalling a shift toward local capital as investors rethink funding models across the continent.
“The centre of gravity is moving toward local capital, local expertise, and local conviction,” said Abi Mustapha-Maduakor, chief executive of AVCA, at the opening of its Venture Capital Summit in Nairobi.
The summit, which opened the association’s 22nd Annual Conference running from April 27 to 30, convened founders, investors, corporate venture arms, foundations, and policymakers to discuss capital flows and business growth.
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A fireside chat between Mustapha-Maduakor and Boris Kodjoe examined how perception shapes investment decisions. “Storytelling is economic architecture – those who control the narrative shape valuation, and perception is what drives investment,” Kodjoe said.
Panel discussions focused on whether global venture capital models align with African markets. Speakers, including Tidjane Dème of Partech Partners, Sapna Shah of Novastar Ventures, Fatoumata Bâ of Janngo Capital, and Mohamed Eissa of the International Finance Corporation, reviewed gaps between expectations and outcomes.
“African venture capital isn’t broken; it’s just young,” Dème said, adding that annual deal volume has increased from about 30 transactions a decade ago to more than 500.
Eissa said annual investment has grown from about $400 million to roughly $4 billion over the same period.
“The capital base is expanding, even if it’s still not enough,” he said.
Sessions on exits highlighted limited liquidity and the need for alternative routes. Participants, including Patricia Rinke of AfricInvest, Ibrahim Sagna of Silverbacks Holdings, and Andreata Muforo of TLcom Capital, said mergers and acquisitions and strategic sales are being used to return capital.
Alex Rumanyika of the National Social Security Fund urged local institutional investors to increase participation. “If we don’t get into this space, it is going to be an existential threat for NSSF and many pension funds,” he said, adding that funds need to shift from government assets to sectors that create jobs.
A private credit session examined alternative financing tools. Nathaniel Micklem of Ninety One said private credit strategies must reflect local conditions.
“What works in Africa is deploying into stronger businesses and sectors,” he said.
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Walid Cherif, co-founder and managing partner, BluePeak Private Capital, concluded by saying, “Private credit is especially suited to African markets because companies continue to perform even when exits are hard to achieve. It is an easier conversation today than it was years ago.”
He expressed that underwriting must remain thoughtful and selective, as managers need to resist pressure to move too fast, because credibility with Limited Partners (LPs) comes from having executed the strategy over time and returned capital, not simply from a compelling market story.
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