New Rules of African Investing: Why French-Speaking Markets Are Winning

Francophone Africa is stepping into the spotlight. Long seen as a secondary destination for investors, the region is now attracting record levels of private equity activity thanks to steady growth, stronger policy reforms, and rising deal opportunities.

Francophone Africa—encompassing the West African Economic and Monetary Union (WAEMU), the Economic and Monetary Community of Central Africa (CEMAC), and North African markets such as Morocco and Tunisia—has traditionally taken a back seat to English-speaking hubs like South Africa and Nigeria. In recent years, however, that pattern has begun to reverse. According to the 2024 report from the African Private Equity and Venture Capital Association (AVCA), the region attracted roughly USD 4.8 billion across 356 deals between 2012 and mid-2024, with annual transaction counts nearly doubling since 2021. 

This momentum marks more than a short-term trend: Francophone Africa is emerging as the new growth engine for private equity on the continent, with reforms, rising deal sizes, and improving exit pathways positioning it to rival—and in some cases surpass—traditional anglophone investment hubs.

This article traces how that transformation is unfolding. We begin with the macroeconomic foundations powering growth, then explore how transaction types are shifting from minority stakes to control deals. We look at the rise of carve-outs and sector consolidations, the regulatory and financial frameworks enabling investment, and the strategies investors are deploying through local partnerships and sector focus. Finally, we assess the risks and outlook that will determine whether today’s momentum becomes a durable ecosystem for long-term returns.

Underpinning this surge are solid macro fundamentals: the WAEMU bloc posted 5.3 percent GDP growth in 2023 (forecast at 6.8 percent for 2024), and Morocco’s economy expanded by 3.8 percent last year—both figures outpacing continental averages. Governments across the region are reinforcing this momentum by pairing industrial incentives with pro-investment reforms. Côte d’Ivoire and Senegal have combined tax breaks and special economic zones with updated investment codes that streamline licensing, while Djibouti’s liberalization of port concessions has attracted PE-backed logistics projects. These initiatives, alongside the growth of scale-ups ready for expansion capital, are deepening the pipeline of opportunities and ensuring that both mid-market buyouts and early-stage ventures can find fertile ground to scale. 

These fundamentals are not just macro signals—they are already reshaping private equity behavior, with deal structures, sizes, and investor confidence all moving into new territory.

Market Overview and the Shift to Control Transactions

The first clear sign of transformation is visible in how deals themselves are structured. Between 2012 and 2020, 83 percent of PE transactions in these francophone markets consisted of growth-equity or minority-stake deals, reflecting cautious exposure in consumer staples, financial services and early-stage tech ventures. Yet in 2023 the region set new records with 17 PE deals, including several exceeding USD 50 million, signaling a shift toward larger, control-oriented transactions (where the investor acquires a controlling stake in the company). 

The growing appetite for control is reinforced by successful exits, which demonstrate that investors can capture and realize value in these markets. For example, a landmark moment arrived in mid-2025 when Oasis Capital completed the first full exit by a West African francophone fund, selling its entire 2021 stake in Mansa Bank—an Abidjan-based lender—at a substantial premium after just four years of stewardship. Simultaneously, in Morocco, Mediterrania Capital Partners sold its stake in Dislog Group, a fast-moving consumer-goods distributor, after 4.5 years. Around the same time, SPE Capital—a private equity firm focused on North Africa and other growth markets—stepped in as the buyer, investing MAD 450 million (≈USD 45 million) to acquire majority control of Dislog, with plans to list the company on the Casablanca Stock Exchange.  These transactions demonstrate that international PE firms are now more comfortable deploying substantial capital for governance control, confident that local exit routes—whether through strategic corporate sales or regional IPOs—can deliver attractive returns. 

Over the past two years, Francophone Africa has seen a surge of mid-sized private equity buyouts in sectors like agribusiness, logistics, and healthcare. Investors are targeting export-oriented poultry processors, regional transport platforms, and clinic groups ripe for consolidation—businesses with clear operational upside. For example, the Pan-African fund Actis led a consortium to acquire APRAN S.A.S., a major poultry-processing business in Senegal, where it upgraded cold-chain infrastructure to significantly reduce post-harvest losses. Similarly, Bolloré Africa Logistics, a French company and a leading West African logistics operator, was acquired by MSC and represents a significant European transport fund buyout in the region. Meanwhile, A.P. Moller Capital, a Danish investment firm, through its Africa Infrastructure Fund, in partnership with Olam International and Africa Finance Corporation (AFC), is investing in a ports and logistics platform spanning West Africa, developing an integrated ecosystem of ports, trucking, warehouses, and rail services. Together, these investors have introduced advanced route-optimization software and expanded cross-border freight operations, improving utilization rates and greatly enhancing logistics efficiency across the region.

These investments are not only reshaping physical infrastructure but also accelerating the adoption of digital solutions—such as route-optimization software—that reduce costs and drive scale. The route-optimization software market in the Middle East and Africa generated roughly USD 1,020.2 million in 2023 and is projected to grow at a 13.2% CAGR from 2024 to 2030, according to Grand View Research, reflecting rising investment in routing technologies.

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Carve-Outs and Consolidation: Unlocking Ready-Made Opportunities

Beyond deal size and control, another engine of activity is the rise of carve-outs and consolidations. Alongside traditional buyouts, carve-outs—when a company sells a smaller, non-essential part of its business—have become a key driver of deal flow. European multinationals and development-finance institutions (DFIs) are increasingly selling their non-core African subsidiaries, creating ready-made opportunities for private equity investors. Across banking, telecom, and retail, carve-outs are emerging as a consistent theme: multinational and regional corporates are trimming portfolios, while PE firms seize ready-made platforms primed for growth.

Vista Group announced it has agreed to acquire Société Générale Burkina Faso and Banco Société Générale Moçambique in a deal worth roughly €150 million, expanding its presence in Africa. Chairman Simon Tiemtore said the acquisitions confirm Vista’s position as a pan-African financial services group with operations in 25 countries and will further its mission to support Africa’s economic growth. Similar carve-outs are occurring in telecom infrastructure—such as Telkom South Africa’s sale of its tower unit Swiftnet (approximately 4,000 sites) to Actis, the Pan-African private equity fund headquartered in London, for approximately USD $355 million, freeing up capital for reinvestment. In retail, Shoprite is planning to exit Ghana and Malawi by selling several stores, streamlining its portfolio and concentrating on its core domestic market. 

These carve-outs often benefit from established operations and regulatory licences, allowing PE firms to concentrate on bolt-on acquisitions—such as bringing together brands that complement each other or strengthening current portfolios—rather than building from scratch. For instance, in Côte d’Ivoire, AgDevCo invested €5.5 million in Afrique Phyto Plus (A2P), a local agro-inputs group, to boost warehouse capacity, expand its distribution network, and implement traceability systems that help track products from suppliers to farmers. The partnership aims to strengthen agricultural supply chains and improve access to quality inputs for farmers across the country. This illustrates how targeted carve-outs can rapidly unlock value. 

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Regulatory & Financial Frameworks: Driving Investment and Fintech

Yet dealmaking alone cannot explain the region’s rise. Supporting this growth, a cornerstone of investor confidence is the region’s regulatory and currency framework. Most WAEMU and CEMAC members peg the CFA franc to the euro, protecting foreign investors from big currency swings and making it easier to send profits home predictably. In parallel, the OHADA Uniform Act provides a harmonized legal framework—covering corporate, commercial, and collateral law—across 17 member states, reducing transaction complexity and due diligence friction while offering foreign investors a ‘single rulebook’ for regional operations. Regulatory reforms continue to progress even further: Senegal’s 2019 Startup Act and Côte d’Ivoire’s updated investment code introduced fast-track licensing for renewable energy and agritech, creating clearer entry points for venture capital. At the same time, Djibouti’s port authority liberalized cargo-handling concessions to invite PE partnerships on logistics-hub expansions, underscoring its ambition to consolidate a trade corridor linking East Africa and the Gulf. Across the region, policy reforms are also creating a more supportive environment for investors. Emerging ESG regulations in Morocco and Tunisia now require environmental-impact assessments for portfolio companies, aligning local standards with international expectations of Limited Partners (LPs). These reforms signal a maturing environment where legal and policy support align with PE priorities. 

Additionally, regulatory sandboxes across Africa are creating space for fintech carve-outs—spin-offs from larger companies focused on financial technology—to launch faster and at lower compliance risk. An example is South Africa’s IFWG sandbox that lets startups test bundle offerings—spanning payments, lending, and insurance—under a single, coordinated regulatory process. In contrast, Mauritius’ FSC sandbox is another example that also provides experimental licenses for integrated fintech models, including payment gateways and insurtech, within one unified framework. Meanwhile, recent digital currency upgrades in the WAEMU region—such as BCEAO’s pilot of an interoperable instant payment system across WAEMU member states, enabling 24/7 cross-border transactions—offer a credible foundation for streamlining international payments for portfolio companies and investors. 

Building on this, fintech has become one of the most dynamic sectors for private equity in Africa, with mobile-wallet operators boosting revenues by adding merchant services and lending across multiple markets. According to the GSMA’s State of the Industry Report on Mobile Money 2025, digital payment histories are increasingly being used as collateral for merchant credit—an innovation that strengthens both mobile money revenues and profitability. On the financing side, they are increasingly turning to innovative tools such as local-currency bond instruments and dedicated bond funds. For example, the African Local Currency Bond (ALCB) Fund has acted as an anchor investor in multiple markets, catalyzing the growth of local bond markets while providing long-term capital and offering pathways for partial exits beyond trade sales and IPOs. 

Winning Strategies: Local Partnerships and Sector Focus

Still, even with favorable deal trends and regulation, execution matters. Savvy PE firms know the win comes from local roots and strong ecosystem ties. They form joint ventures with regional sponsors—eg., Abidjan-based AfricInvest or Casablanca’s CDG Capital—to access proprietary dealflow, local networks and political insight. Partnering with DFIs, such as the International Finance Corporation (IFC)’s ~US$75 million commitment to Helios Fund V (a private equity fund focused on investing in high-growth African companies) brings scale, stricter governance and cheaper capital. This is because once invested, on-the-ground teams handle ESG, digital upgrades and management training—often working with local talent hubs like African Leadership University or MEST Africa—to strengthen boards, professionalize management and speed up value creation. 

Meanwhile, energy infrastructure has also become a fast-growing opportunity. The Africa Minigrid Developers Association (AMDA) notes in its Benchmarking Africa’s Minigrids Report 2024 that commercial mini-grid players are rapidly scaling deployment, driving higher efficiency and expanding access to tens of thousands of customers across underserved regions. This means more communities are gaining reliable electricity where the main grid does not reach, supporting local businesses, schools, and households.

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The Decade Ahead: Risks, Mitigation, and Strategic Outlook

Looking ahead, the story would be incomplete without addressing risks. Despite the macroeconomic stability and legal harmonization that make Francophone Africa an attractive frontier for PE, several risks persist. Political volatility remains a significant concern, exemplified by Mali's transitional government which can derail investment timelines. Additionally, while the currency peg of the CFA franc to the euro offers nominal stability, it may mask underlying inflationary pressures, requiring hedging strategies or local-currency reinvestment structures to protect returns. It can obscure the true cost of living and economic competitiveness within the region as well.

Additionally, exit markets outside of Casablanca and Abidjan remain relatively shallow, requiring that private equity firms adopt flexible approaches to manage liquidity and navigate complex regulatory and political environments. Competition from entrenched family conglomerates and state-owned enterprises often forces investors to restructure operations, making malleable deal terms essential to protect investments and drive value. While these risks require careful structuring and adaptive strategies, the resilience of recent deal activity suggests investors are increasingly prepared to navigate them. These approaches, highlighted in African M&A strategies, are central to building confidence and enabling successful exits. 

Against this backdrop, the emergence of private equity in Francophone Africa stands out not just for its untapped potential but also for its ability to reshape how institutional capital engages with developing economies. Unlike other frontier markets reliant on extractive industries such as Mozambique or the Democratic Republic of the Congo, the region is building diversified foundations. Viable exits and growing investor confidence signal a maturing asset class where patient capital can generate strong returns while fostering industrial development. The GDP is projected to grow 4–5 percent annually over the next five years, according to the African Development Bank (AfDB). 

For sophisticated investors, the opportunity goes beyond traditional risk-return metrics—it offers a chance to shape Africa’s economic landscape, with the next decade likely determining whether this momentum becomes a sustainable, high-impact investment ecosystem or remains a peripheral frontier-market opportunity.

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