Stears, a financial data and software company focused on African markets, has released its Private Capital in Africa Report: Q3 2024, revealing a notable trend in single-country investments as private capital continues to drive investment activity on the continent.

"Our findings emphasise the importance of single-country investments as a cornerstone of Africa’s private capital landscape," said Michael Famoroti, Head of Research and co-founder at Stears. 

"This trend reflects a strategy toward tapping into localised growth potential while balancing risk within defined markets."

According to the report, 64% of recorded private market deals in Q3 2024 were single-country investments, reflecting investor attention on localised opportunities within Africa’s dynamic markets. 

Single-country investments refer to investments where the target company only operates in one market. South Africa, Egypt, and Kenya emerged as the top destinations for these deals, collectively accounting for over 60% of all single-country transactions during the quarter

According to the findings, South Africa led single-country transactions, contributing nearly one-third of all single-country deals, followed by Egypt and Kenya, each at 17%.

According to the report, Agriculture was the most localised sector, with 91% of deals involving single-country investments, which underscores the sector’s reliance on domestic markets and critical role in regional food security.

The consumer goods sector also showed strong localisation, with 69% of its transactions focused on single-country operations, highlighting the growing importance of domestic consumption markets.

In contrast to localised investments, multi-country transactions were more prevalent in sectors like energy and financial services, where regional scale and integration drive growth.

This trend in single-country investments may signal a growing appetite for targeted opportunities that cater to the unique strengths and needs of individual African markets. 

This trend also aligns with the increasing ability of countries like South Africa and Kenya to attract and sustain private capital flows through enabling environments for localised growth.