Private equity injects cash for businesses in Africa

Africa is growing, and African companies need cash to expand. Investors want in on the action, especially given low returns in many other parts of the world these days. Enter private equity — the purchase by a private investor of a share of a company that is not listed on a stock market.

Private equity now seems to be starting to fill a void that cannot be handled by banks alone. “For most companies in Africa, raising money means going to the bank,” says David Levin, senior managing partner of Nova Capital Global Markets in New York. “We bring in a different level of financing.”