April 10, 2017: Quartz’ Africa Editor Yinka Adegoke spoke to Hurley Doddy, Co-CEO of Emerging Capital Partners (ECP), alongside political and business leaders at the 14th African Private Equity and Venture Capital Association’s (AVCA) conference in Abidjan about how private equity investing has contributed to positive social development in Africa.
Côte d’Ivoire’s Vice President Daniel Kablan Duncan emphasized that his own country welcomes private investors, and that private equity investments have channeled capital towards priority development areas such as infrastructure and power generation. Such high-growth sectors represent high return opportunities for investors while accelerating tangible social and economic improvements.
According to AVCA, private equity companies invested US$3.8billion in 145 deals in the agriculture, energy, healthcare and financial sectors across Africa, an increase of 50% from 2015. Many cite the “social good” or “development dividend” that generates larger returns as infrastructure such as road networks, energy distribution, or agricultural processing improves.
Hurley Doddy underscored that private equity companies are first and foremost responsible for delivering investor returns but that doing this effectively creates positive outcomes for Africa’s growth. He said, “By fulfilling these needs, [private equity investors] can make money because you’re helping to grow the economy and transform society.”
Over the last 16 years, ECP has raised nearly $3 billion for investment in Africa.
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