Capital Raising - Southern Africa

Southern Africa

The Total Capital Raised in Southern Africa's Capital Raising market market is forecasted to reach US$954.0m in 2024.
Traditional Capital Raising leads the market with a projected market volume of US$880.5m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$331,800.0m in 2024).
Southern Africa is experiencing a surge in private equity investment, driving capital raising activities in the region's capital markets.

Key regions: United States, China, India, Israel, Europe

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Region

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Analyst Opinion

The Capital Raising market in Southern Africa has been experiencing significant growth in recent years.

Customer preferences: Investors in Southern Africa have shown a strong preference for capital raising activities, as they seek to diversify their portfolios and take advantage of new investment opportunities. This is particularly true for institutional investors, who have been actively participating in capital raising activities in the region. Additionally, individual investors are also showing increased interest in capital raising, as they look for ways to grow their wealth and secure their financial future.

Trends in the market: One of the key trends in the Capital Raising market in Southern Africa is the increasing popularity of initial public offerings (IPOs). Companies in the region are increasingly opting to go public in order to raise capital for expansion and growth. This trend is driven by a number of factors, including the growing investor appetite for new investment opportunities and the desire of companies to access additional funding sources. Another trend in the market is the rise of private equity and venture capital investments. Southern Africa has seen a surge in private equity and venture capital investments, as investors look to support the growth of small and medium-sized enterprises (SMEs) in the region. These investments provide much-needed capital to fuel innovation and expansion, and they also offer attractive returns for investors.

Local special circumstances: Southern Africa is home to a number of vibrant and dynamic economies, including South Africa, Botswana, and Namibia. These countries have well-developed financial markets and regulatory frameworks, which provide a conducive environment for capital raising activities. Additionally, the region has a young and growing population, which presents a large consumer base and attractive investment opportunities.

Underlying macroeconomic factors: The Capital Raising market in Southern Africa is also influenced by a number of macroeconomic factors. These include the overall economic growth in the region, which drives investor confidence and encourages capital raising activities. Additionally, government policies and regulations play a crucial role in shaping the market, as they determine the ease of doing business and the attractiveness of the investment climate. In conclusion, the Capital Raising market in Southern Africa is experiencing significant growth, driven by investor preferences, market trends, local special circumstances, and underlying macroeconomic factors. As the region continues to develop and attract investment, we can expect the Capital Raising market to further expand and evolve in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.