THE African Private Equity and Venture Capital Association has said that currency risk is most impactful for fund managers in Africa at the time of portfolio exit.
It disclosed this in its second special report series which explored the ‘Currency risk management practices in African private equity and venture capital’ alongside the Currency Exchange Fund and MFX solutions’.
“Overall, the survey demonstrates that although currency risk is present throughout the investment process, it was most impactful for both fund managers and LPs at the time of portfolio exit,” it said.
The report was launched ahead of AVCA’s 18th annual conference in Dakar, to explore how investors are navigating currency volatility and uncertainty in Africa’s investment landscape and provide topical, independent, and thoughtful research on an ever-growing ecosystem.
The Chief Executive Officer, AVCA, Abi Mustapha-Maduakor, said, “We welcome the continued increased interest in private capital in Africa, although it is key, we address the growing concerns related to currency illiquidity and volatility as they remain significant barriers to growth across the continent.