Private Equity in African Emerging Countries: A Country-Level Perspective

Francesco Bruno Pan & Michela Bertini

Student thesis: Master thesis

Abstract

This thesis investigates which African Emerging country has the best business environment to attract the Private Equity activity, using the predicted number of Private Equity completed deals as a proxy for attractiveness. In particular, after having reviewed the existing literature, this paper focuses on finding, through a deductive approach, the variables that can better predict PE activities in these countries. Through the use of a Random Effect Model, the significance of the variables is tested, and the results are employed to predict which country is lately the best in terms of attractiveness. A solely econometric analysis raises the risk of overlooking some aspects that might significantly affect the attractiveness; therefore, the results are confirmed through the use of the PIE framework, which enables to analyse in-depth the Political, Institutional and Economics aspects of the countries. As a result of this analysis, the thesis does not only confirm that South Africa is the most attractive nation in the African Emerging Markets context, but it is able to highlight the country-specific aspects that make it stand out. In conclusion, our paper provides a new research approach and fill the existing literature gap that is present for the Private Equity Investments in African Emerging Markets. Finally, the results about drivers and determinants can be used on the investors and governments decision-making processes.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages148
SupervisorsBersant Hobdari