Private Equity deals to rise on cheaper valuations

I&M Burbidge analysis shows that the total number of transactions in the region fell to 122 from 131 in 2023, primarily due to a decline in PE and DFI investments amid elevated global interest rates, inflationary pressures, and geopolitical uncertainty.

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The volume of investments into East Africa by private equity (PE), venture capital and development finance institutions (DFIs) is tipped to grow in 2025, on account of favourable valuations and difficulties by businesses to access bank loans because of high cost of credit.

In an overview of the East African deals landscape, advisory firm I&M Burbidge Capital says that mergers and acquisitions should also go up in the period, due to an influx of foreign capital with the lowering of interest rates in developed economies.

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