Private equity firms are taking control of a growing number of industrial assets across Africa as multinational companies exit at reduced valuations, reflecting mounting pressure from currency volatility, regulatory challenges, and shifting global priorities.
The emerging pattern is defined as much by pricing as by deal volume. Across multiple transactions in the past year, global firms have accepted discounts—often below book value—to divest African subsidiaries, creating opportunities for local and regional investors to acquire established businesses at lower entry points.
According to Africa Capital Digest, the continent recorded 530 private-capital deals worth $5.1 billion in 2025, an 8 percent increase year-on-year. Africa stood out as the only region to post growth in private investment during the period, with much of the activity concentrated in transactions shaped by valuation resets.
Nigeria has been at the center of this shift. Diageo’s exit from Guinness Nigeria came at a depressed valuation, driven largely by the sharp weakening of the naira, which eroded returns in foreign currency terms. Société Générale has followed a similar path, selling several African subsidiaries below their accounting value between 2024 and 2025 as it sought to reduce exposure to markets considered high-risk.
These discounted exits are now driving a new wave of acquisitions.
Last Thursday, Mediterrania Capital Partners, a Malta-based firm with €1.2 billion in assets under management, agreed to acquire 100 percent of Société Marocaine des Manufactures de Mohammedia from Amcor Group. The business, which owns Amcor Flexibles Mohammedia, supplies packaging to sectors including food, pharmaceuticals, and home care. While financial terms were not disclosed, market observers say such deals are increasingly priced to reflect both macroeconomic strain and sellers’ urgency to exit.
On the same day, Enko Capital finalized its takeover of Servair’s fast-food operations in Côte d’Ivoire, including the local Burger King franchise. The carve-out separates the non-aviation segment from Servair’s parent company, now owned by Swiss group Gategroup, which is refocusing on aircraft catering operations at Abidjan airport. As with many recent transactions, pricing details were not made public, but the deal aligns with a broader trend of assets changing hands at buyer-friendly valuations.
Earlier, in August 2025, Enko Capital led a consortium to acquire Société Générale Mauritania, a transaction widely viewed by analysts as reflecting discounted pricing tied to country-specific risks.
Analysts say the common thread across these divestments is a recalibration of asset values. Currency depreciation, inflation, and regulatory uncertainty have forced multinational companies to reassess what their African operations are worth, often leading to sales at significant discounts compared to historical valuations.
For private equity firms, the lower pricing presents a clear upside. Acquiring revenue-generating businesses at reduced multiples can enhance returns if operating conditions stabilize over time. However, the risks remain substantial. Buyers inherit the same macroeconomic challenges that prompted the exits, often with smaller balance sheets and less capacity to absorb prolonged volatility.
Despite these risks, deal activity is accelerating in key markets. A February report by HSF Kramer showed that mergers and acquisitions volume in Morocco rose by 65 percent in 2025, while Egypt and South Africa together accounted for half of Africa’s total deal value. Much of this activity is concentrated in mid-cap industrial assets, where valuation gaps between buyers and sellers are narrowing.
The current wave of divestments dates back to 2023, when several multinational companies began scaling back their African exposure. Diageo reduced its stake in Guinness Nigeria, Unilever trimmed its regional footprint, and Nestlé restructured its operations in Central and West Africa. Société Générale has since exited subsidiaries in Mauritania, Burkina Faso, Mozambique, Madagascar, and Cameroon, with most of the buyers headquartered on the continent.
At the same time, African private equity firms are raising larger funds to capitalize on these opportunities. Mediterrania Capital Partners recently closed its €600 million MC IV Mid Cap fund, its largest since inception. Adenia Partners reached a $180 million hard cap for its Adenia Entrepreneurial Fund I in March, exceeding its initial $150 million target, while Amethis raised €406 million for its third pan-African fund in 2024.
With multinational companies such as Amcor and Gategroup testing whether divestments to local investors can sustain operations and preserve jobs, further exits are expected. Attention is now turning to Société Générale, which is anticipated to provide an update in the second quarter on its remaining African disposals.
As the transition unfolds, Africa’s industrial sector is being reshaped by a shift in ownership driven by pricing realities. Assets once held by global corporations are increasingly moving into the hands of private equity firms, often at recalibrated valuations that reflect both the risks of operating on the continent and the potential for long-term gains.
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