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East Africa’s private capital market has grown stronger, with more investors focusing on debt financing, agriculture, and businesses linked to production and steady cash flow.
According to the latest report by the African Private Capital Association (AVCA), East Africa attracted $4.1 billion in nearly 500 private capital deals between 2021 and 2025. In 2025 alone, deal value rose by 75% to $1.2 billion, making East Africa the second-largest private capital market in Africa by value.
While venture capital still accounts for a large share of deals, investors are now shifting toward safer, more structured investments, especially private debt.
AVCA said, “Private credit is becoming increasingly central to African private capital portfolios as investors adjust to tighter global liquidity conditions.”
Agriculture accounted for 17% of deals in the region over the last five years. More financing is now being tied to supply chains, export contracts, and trade flows rather than to direct ownership of small businesses or farms.
The African Development Bank said Africa needs to “Deepen domestic capital markets and expand long-term financing instruments to support structural transformation.”
Also, the report showed that East Africa recorded Africa’s fastest growth in investor exits, meaning investors are recovering and reinvesting funds faster than before. Kenya remains the region’s biggest market, accounting for 61% of deal volume and 87% of total deal value in 2025. However, countries like Uganda are also attracting more investment in agriculture, financial services, and logistics.
The International Monetary Fund (IMF) stated that many African economies still rely heavily on banks, with weak capital markets limiting long-term financing. Meanwhile, companies such as Equity Group Holdings and Airtel Africa continue expanding investment activities across the region despite global economic pressures.
Experts say the market is gradually becoming more mature, with a stronger focus on long-term financing and sustainable investment structures.
Credit: Bonface Orucho, Bird Story Agency.
