It is impossible to predict how the alternative investments sector in Africa will weather the COVID-19 crisis. However, looking at how the industry endured the last significant market disruption and contraction, the Global Financial Crisis, is useful. Research from the African Venture Capital Association (Avca) shows that both dealmaking and fundraising declined sharply in Africa after the crisis.
A 2020 Avca survey shows similar trends with 92% of private capital investment managers reporting that they were either not fundraising or that they expected that the pandemic will influence the timeline of their fundraising materially.
