LEAF’25 AFRICA INVESTMENT LANDSCAPE REPORT
LEAF
Executive Summary
- Venture Capital: Seed-to-Series C returns show strong potential, with IRRs reaching up to 100%+ and exits like Paystack and Flutterwave validating investor appetite.
- Private Equity & Infrastructure: Growing traction in sectors like power, logistics, and education. Steady returns (15–25% IRR) driven by structured exits and real asset plays.
- Capital Mix: Africa’s startup funding remains equity-heavy (79% vs 21% debt), unlike more balanced models in Asia or North America.
- Risk Premiums: High CRPs (7–12%) across most regions elevate return expectations, underscoring the need for macro stability and policy reforms.
Investors must tailor their expectations to market realities; entrepreneurs must navigate valuation sensitivity; policymakers must reduce friction and mitigate risk in the environment.
Our Dedication to Africa
At LEAF, we believe Africa’s future depends on our ability to nurture its energy by backing entrepreneurs with vision, supporting ventures with purpose, and shaping policies that accelerate progress. We developed this report to raise awareness and to inspire. It is a call to action for investors to engage more deeply, for entrepreneurs to push boundaries, and for policymakers to create conditions that enable innovation to thrive.
We hope these insights spark new ideas, provoke meaningful conversations, and lead to decisions that will positively and profitably shape Africa’s next chapter.
Executive Summary
Over the last decade, Africa’s investment landscape has evolved from fragmented optimism to a maturing capital ecosystem. This document distils key insights across funding stages, risk expectations, and regional dynamics:
- Venture Capital: Seed-to-Series C returns show strong potential, with IRRs reaching up to 100%+ and exits like Paystack and Flutterwave validating investor appetite.
- Private Equity & Infrastructure: Growing traction in sectors like power, logistics, and education. Steady returns (15–25% IRR) driven by structured exits and real asset plays.
- Capital Mix: Africa’s startup funding remains equity-heavy (79% vs 21% debt), unlike more balanced models in Asia or North America.
- Risk Premiums: High CRPs (7–12%) across most regions elevate return expectations, underscoring the need for macro stability and policy reforms.
Investors must tailor their expectations to market realities; entrepreneurs must navigate valuation sensitivity; policymakers must reduce friction and mitigate risk in the environment.
Our Dedication to Africa
At LEAF, we believe Africa’s future depends on our ability to nurture its energy by backing entrepreneurs with vision, supporting ventures with purpose, and shaping policies that accelerate progress.
We developed this report to raise awareness and to inspire. It is a call to action for investors to engage more deeply, for entrepreneurs to push boundaries, and for policymakers to create conditions that enable innovation to thrive.
We hope these insights spark new ideas, provoke meaningful conversations, and lead to decisions that will positively and profitably shape Africa’s next chapter.
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