(Agence Ecofin) – Private equity investments made in Africa during the period 2009 to 2015 created 10,999 additional jobs, according to a report published by “The Economist”.
89% of the jobs created are permanent. From a gender perspective, the sector added 7,097 additional jobs for men, compared to just 3,893 for women. Taken in relative terms, a certain balance is more noticeable, with an addition of 16% more positions for men, and 15% more for women. Beyond job creation, the document reveals that private equity has produced other impacts in the region.
“Private equity in Africa is mainly used to support growth, while in developed countries it may be more focused on the objective of financial restructuring,” explains Ngalaah Chupi, CEO of Ethos Private Equity, one of the most dynamic private equity firms in South Africa.
In a region where access to long-term capital is sometimes complex and expensive, private equity, over the period of the analysis, unleashed and developed the potential of companies and all the sectors that benefited from its contributions. Added to this structural growth, private equity has also supported strategies for geographic expansion and economic integration.
“Our Kenya-based catering company (Java House) had 12 outlets when we first invested there. We have developed it to 60 points of sale, widened its presence outside Kenya, in Uganda in particular, and there is still room for future investors to be able to at least triple the number of points of sale ”, he added. explained Hurley Duddy, Executive Director at Emerging Capital Partners.
Beyond both structural and geographic growth, private equity claims to improve governance within companies and to take environmental and social issues into account. “All of the companies in our portfolio contribute in some way to making life better for people and businesses in Africa,” says Dabney Tonelli, investor relations partner at Helios Investment Partners.