Africa’s private debt markets are expected to grow steadily between 2026 and 2030, giving companies more ways to raise money beyond traditional banks, according to a PwC report on global capital markets.
“Private debt markets will continue to grow, offering African companies alternative financing beyond banks,” the report states.
This growth could change how businesses in Africa fund their operations. Companies in areas like infrastructure, energy, technology, and financial services often face limits when borrowing from banks. Bank loans can be expensive, hard to get, and usually require strong collateral. Private debt offers a new way to get money, often with more flexible conditions that match the needs of businesses.
The numbers show why this is important. In 2024, the Middle East and Africa private credit market was worth around $45 billion. Analysts expect it to grow to about $108 billion by 2031, more than doubling in size.
In Africa specifically, private debt deals have been picking up. In the first half of 2025, deal volumes rose by about 23% compared with the same period in 2024, showing strong interest from investors. By the third quarter, deal activity nearly matched all of 2024, highlighting rapid growth.
For companies, this is good news. Private debt can provide faster access to funds, support expansion plans, and help startups and small businesses that struggle to get bank loans. Businesses can use private debt to invest in new projects, hire more people, or enter new markets.
Why it matters
Africa still has a small share of global corporate debt, about 1%, even though its economy makes up over 2.5% of global GDP. This shows a big gap between the money available and the financing African businesses need. Private debt growth could help fill this gap.
Local banks in many countries have struggled to lend enough, partly because governments borrow a lot and banks have limited resources. Private debt can bring in new money from investors around the world to help businesses grow without overloading banks.
In South Africa, private equity firms are using private debt not just as a backup but as a way to diversify their investments. Many are funding growth projects or structured deals for businesses that want longer-term financing.
For African businesses, private debt can mean quicker access to money, fewer restrictions than banks, and more options from international investors. As global capital markets change and investors keep looking for alternatives, Africa’s growing private debt market offers companies a new path to finance growth, support projects, and expand across the continent.
