Why companies are going for private debt in capital hunt

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Spiro electric motorbikes during their launch at Mombasa's Mama Ngina Waterfront, Kenya on September 1, 2023.

Photo credit: File | Nation Media Group

Companies seeking capital are preferring private debt from non-bank investment vehicles compared to bank loans and equity investment by private equity and venture capital funds, attracted by more flexible lending terms.

Analysis by the African Private Capital Association shows that in 2025, private debt deals rose by 57 percent to 72 transactions on the continent, outpacing the growth of two percent for PE and venture capital deals.

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