KKR & Co. L.P. might be turning to Africa as its next hotspot for private equity investments. As per Reuters, the company is expected to invest approximately $100 million in the continent over the next year.
Why Africa?
Africa is experiencing a demographic shift, wherein a rising middle class population is driving demand for infrastructure, consumer discretionary, financial services, etc. The shift primarily comes on the back of a booming urban population with higher disposable income. As such, investment in companies that support these facilities is likely to benefit private equity firms like KKR.
Additionally, according to data from the International Monetary Fund, over 50% of the world’s fastest growing economies belong to Africa. These include Nigeria, Angola, Ethiopia, Ghana, Uganda and Zambia, among others. Such data hints that potential for investment in the region is high.