Private capital fundraising across Africa staged a notable recovery in the first quarter of 2026, with disclosed investor commitments rising to $870 million as institutional investors renewed their interest in the continent’s private markets, according to a new Stears report.
According to the Q1 2026 Africa Private Capital Fundraising Report, African private capital fund vehicles attracted 78 limited partner (LP) commitments in the first three months of the year, compared with 57 in the fourth quarter of 2025 and 67 in the same period last year.
Stears described the performance as a strong signal of improving market sentiment, noting that “Q1 2026 represents a strong start to the year for African private capital fundraising. The number of LP commitments reached its highest first-quarter level since 2022, while disclosed value was the highest recorded since 2023.”
The rebound comes despite weaker disclosure rates, suggesting the increase was driven by larger individual commitments rather than a broad-based rise in investor participation transparency.
The report stated that “only 42 percent of LP commitments disclosed a specific amount, down from 47 percent in the preceding quarter, indicating that the rise in aggregate value was driven by larger reported commitments rather than broader disclosure.”
Development finance institutions continued to dominate fundraising activity, reinforcing their critical role in African capital formation.
“The most active LPs in the quarter were three development finance institutions (DFIs): DEG (Germany), Proparco (France), and BII (United Kingdom),” the report said, adding that “Their prominence reinforces the central role these institutions continue to play in anchoring African private capital funds, particularly in periods where fundraising conditions remain uneven.”
Among investors, the European Investment Bank emerged as the most significant by disclosed value, committing $210 million, nearly one-quarter of total disclosed capital during the quarter.
Stears noted, “In terms of commitment value, the EIB stood out in Q1 2026. It’s $210 million in disclosed commitments accounted for nearly a quarter of total disclosed LP capital in the period.”
The largest disclosed allocations included $94 million into RMBV North Africa Fund III and $80 million into Apis Growth Fund III, while Development Partners International’s African Development Partners IV fund secured sizeable backing from the International Finance Corporation, DEG, and Proparco.
Investor appetite also showed evolving preferences across fund categories. By volume, venture capital overtook private equity as the most active asset class, accounting for 36 per cent of all commitments.
Stears said, “By fund type, venture capital (VC) accounted for the largest share of LP commitments by volume in Q1 2026 (36 percent), toppling private equity (PE) from the preceding quarter.”
Yet the report noted that venture investments remained smaller in ticket size, accounting for just 16 per cent of disclosed commitment value.
Private credit emerged as another area of growing momentum, reflecting investor preference for structured returns amid a difficult financing environment.
The report explained that debt financing has become an increasingly important source of capital for businesses, particularly as access to traditional bank lending remains constrained, and equity funding has become more selective.
Sector allocation trends showed continued investor focus on core economic growth areas.
Energy and utilities appeared in 60 per cent of all commitments, making it the most represented sector, followed by agriculture (47 percent), financial services (44 percent), and information technology (36 percent).
According to Stears, “These sectors reflect areas with sustained demand for capital, clear growth pathways, and strong alignment with structural economic needs.”
For Nigeria, the implications are particularly significant. The report noted that energy, agriculture, financial services, and technology together accounted for 39 percent of Nigeria’s GDP in 2025, underscoring how international investor priorities are aligning with sectors central to the country’s economic transformation.
“While the fundraising rebound offers encouragement for African fund managers, the dominance of DFIs also highlights a lingering structural challenge: the need to attract more commercial institutional capital into African private markets,” Stears disclosed.
