As global capital seeks diversified growth and risk-adjusted returns, Sango Capital reaffirms Africa’s position as a compelling frontier. From shifting macro fundamentals to digital transformation, the continent is emerging as a strategic anchor for long-term investors—and Sango is leading the charge.
In 2021, when Sango Capital was last honoured with a CFI.co award, the world was in the early stages of post-pandemic recovery. Africa, often underestimated in global forecasts, demonstrated notable resilience. The continent’s economic contraction in 2020 was a modest -1.7%—far better than anticipated—and by 2021, GDP growth rebounded to 4.5%, outperforming several emerging market peers.
At the time, Sango described this phenomenon as the “Covid acceleration effect.” Technology adoption surged across sectors, with mobile money usage increasing by 21% in active accounts. Legacy industries embraced digital delivery models, while capital markets matured—African debt issuance deepened, infrastructure spending picked up, and major currencies began to float, fostering transparency and resilience.
These were not anomalies; they signalled the beginning of a new structural phase. While others focused on fragility, Sango saw forward momentum. Yet the disparity between opportunity and capital inflow remains stark. Africa represents more than 18% of the world’s population and a $2.1tn consumer economy—but receives less than 0.5% of global private equity and just 0.1% of North American pension allocations.
The global investment climate is evolving. Amid trade uncertainty, macroeconomic recalibration, and rising geopolitical risks, investors are rotating parts of their portfolios away from US-centric assets toward global and emerging market opportunities. In June 2025, global fund flows shifted dramatically: allocations to emerging markets rose, while cash and US positions declined. According to a recent fund manager survey, 54% expect international (non-US) equities to outperform over the next five years—compared to just 23% favouring the US.
In this shifting context, Sango Capital’s conviction in Africa’s trajectory is more relevant than ever. The firm remains focused on delivering attractive returns by deploying disciplined, multi-platform strategies across the continent’s most promising sectors. Sango remains committed to tackling persistent misconceptions and demonstrating that Africa, approached thoughtfully and with operational depth, can be one of the world’s most dynamic investment frontiers.
Currency volatility, governance concerns, and illiquidity are often cited as reasons to avoid African investments. But many of these concerns are overstated or based on outdated assumptions.
Moody’s Analytics found that African infrastructure debt experienced a loss rate of just 1.7% over 14 years—compared to 13% in Latin America and 10% in Eastern Europe. Fitch Ratings confirmed that sovereign defaults in Africa between 2020 and 2022 were lower than in Latin America. Meanwhile, net internal rates of return (IRRs) for African private equity funds have been on par with or outperforming many global peers when adjusted for volatility, according to the IFC.
Africa’s long-term growth story is underpinned by powerful demographic and structural forces. With a population of over 1.4 billion and the youngest median age globally (19 years), Africa’s urbanisation and workforce expansion are fuelling rising consumption. More than 600 million people now live in cities, driving demand across infrastructure, retail, finance, and digital services.
Annual household spending is projected to surpass $1tn. B2B consumption adds another $2tn annually. Retail penetration in major economies like Egypt and Nigeria remains low—presenting opportunities for exponential growth. Sango has invested successfully in the leading discount retailer in North Africa and top indigenous grocery chain in Nigeria—both poised to scale significantly. One investment has already delivered a timely and better-than-expected partial exit.
Mobile technologies continue to leapfrog infrastructure gaps. Africans are banking, borrowing, and transacting via smartphones. Mobile broadband penetration is projected to exceed 90% in Nigeria, Ghana, and Côte d’Ivoire by the end of 2025. This sets the foundation for rapid growth in e-commerce, fintech, and cloud services. Meanwhile, data centre capacity is expanding, digital infrastructure exits are materialising, and African pension funds are becoming more active in yield-generating investments.
Between 2025 and 2028, Africa is forecast to be the world’s second-fastest growing region, with 40 countries projected to exceed their 2023 growth levels. For the first time in over two decades, key economies like Egypt and Nigeria have de-pegged their currencies. These reforms reprice over 45% of Africa’s GDP, enhance investor predictability, and echo Asia’s transition before its capital markets took off.
This is not a temporary trend—it is a structural pivot. Africa is emerging as a global consumption and investment engine. For capital allocators, the question is no longer if Africa is investable—it’s how to participate effectively.
Sango Capital provides one answer through its flexible, multi-platform strategy. The firm deploys capital across primary funds, co-investments, secondaries, special situations and direct co-investment opportunities. This model allows Sango to tailor exposure to context—backing tech-enabled growth, mid-market essential businesses, and innovative structures in areas overlooked by others. The team targets companies growing at 20–50% per year, at valuations significantly below global comparables.
Africa’s macro environment has shifted—but so has its investor base. Those with on-the-ground expertise, trusted networks, and adaptive capital structures are best positioned to capture outsized returns.
As global allocators rethink their strategies, Sango Capital remains focused on the principles that have guided it since inception: clarity, discipline, and long-term partnership. The African investment story is not one of speculation—it is one of conviction, strategy, and execution.
In 2021, Sango highlighted the beginning of a structural reawakening. In 2025, the momentum is undeniable. For investors seeking durable returns in a changing global cycle, Africa—and managers like Sango—offer a pathway to growth built on fundamentals, not forecasts.
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