Leading accounting firm Ernst & Young have revealed six per cent of African investment exits over the past five years were in technology, while almost a quarter of investment exists came from the financial sector.
Sachin Date, private equity leader of Ernst & Young, Europe, Middle East, India and Africa (EMEIA), discussed the findings of the study conducted between 2007 and 2012 on exits in Africa at the African Venture Capital Association (AVCA) Alpha Conference in Cape Town, South Africa, this morning (Wednesday).
Technology’s investment exits sits at the same value as the construction industry.
While it performed better than the health industry at five per cent, industrial investments was at 13 per cent and the highest invested sector was finance with 23 per cent.
However, telecommunication investment exit is slightly higher, attaining eight per cent and sharing an equal investment exit value with African businesses.
“It’s about the whole story behind it,” Date said on the research aimed at value estimation of exits in the respective sectors in Africa.
South Africa attracted 40 per cent of African investments during the past few years, with West Africa following at 25 per cent and East and North Africa each claiming 11 per cent.
According to Date, South Africa’s leading role in the African investment attraction is due to its operations being more “sophisticated”.
HumanIPO reported earlier today on South Africa’s role as a gateway for African investments.
Date emphasised the importance of noting the majority of transactions being sales to African trade by 2012.
