Private Credit
Private Credit Shifts Toward Africa Deal Pipelines
New data from the Global Private Capital Association shows private credit allocations into emerging markets hit a record level in 2025.
In Africa, Africa Finance Corporation has publicly stated it is in talks on its first funding involving private credit lenders, targeting infrastructure and production-linked assets.
What The Numbers Say
Reuters reports GPCA data showing a record $22.3 billion
of private credit allocated to emerging markets in 2025, close to 40% above the prior record in 2022.
The same dataset shows broader private capital investment into emerging markets rising sharply year-on-year, with infrastructure and energy remaining key destinations.
Why this matters for Africa:
when local banks tighten credit and sovereign refinancing absorbs liquidity, corporates and project sponsors look for non-bank balance sheets. Private credit fills that space when the structure is underwriteable.
Africa Signal: A Major Infrastructure Lender Starts Talking Private Credit
Africa Finance Corporation, following an S&P rating upgrade discussed by Reuters, said it is in talks for its first funding involving private credit lenders.
AFC also highlighted demand for projects tied to critical minerals, renewable energy, fertiliser, and logistics corridors that move production to export routes.
What Private Credit Likes In Africa
Predictable cash flow, enforceable security, and control points. Think contracted infrastructure revenue, regulated utilities, take-or-pay style offtake, or asset-backed structures with hard controls.
What Gets Rejected
Weak governance, unclear beneficial ownership, “all upside” projections, missing permits, no currency plan, and no credible downside case. A glossy deck does not compensate for a thin file.
Where Dealflow Is Concentrating
Energy and digital infrastructure, export logistics, supply-chain-linked production, and contracted industrial assets. These are easier to monitor, easier to secure, and easier to explain to a credit committee.
Macro Backdrop
Reuters cites a heavy 2026 sovereign repayment calendar in Africa. That pressure can shrink domestic bank risk appetite and pushes sponsors toward structured private capital with tighter controls.
Deal Structures Showing Up
| Structure |
Typical Use |
What Lenders Focus On |
| Senior Secured Direct Lending |
Growth capex, acquisitions, refinancings for cash-flow businesses |
Debt service coverage, covenants, security package, reporting cadence |
| Infrastructure Debt |
Power, midstream, ports, data centres, logistics |
Contracted revenue, step-in rights, reserve accounts, technical and legal diligence |
| Project Finance-Style Private Debt |
Build-and-operate assets with offtake and ring-fenced cash flows |
Permits, completion risk, offtaker credit, escrow and waterfall controls |
| Asset-Backed Lending |
Equipment, receivables, inventory-linked working capital |
Valuation, collateral control, eligibility criteria, default triggers |
| Mezzanine / Structured Credit |
Equity gap, sponsor leverage, bespoke risk tranching |
Intercreditor terms, downside protection, enforceability in local courts |
Execution reality:
Africa private credit is not “easy money.” It is heavy diligence, strict KYC, and hard controls. If the structure cannot be monitored, priced, and enforced, it does not close.
Disclosure
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This post is general information for commercial participants and is not legal, tax, or investment advice. Financely does not lend and does not commit capital. Financely operates as a transaction-led capital advisory desk.
Any financing is subject to KYC, AML, sanctions screening, diligence, and independent lender approvals. Where regulated execution is required, delivery is coordinated through appropriately licensed firms operating under their own approvals.
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