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East Africa defies economic slump to attract private equity billions

Goodlife Chief Executive Tony McNally (left) when the firm launched its Naivasha store at Buffalo Mall earlier this year. Catalyst Principal Partners last week announced an exit from the pharmaceutical retailer after recouping its investment, demonstrating Kenya’s growing private equity market. [PHOTO: WILBERFORCE OKWIRI/STANDARD]

In a year that has seen Sub-Saharan Africa suffer strong economic headwinds, East Africa has emerged largely unscathed while raking in billions of shillings in private equity investment.

An economic slowdown in China has meant reduced demand for Africa’s commodities. This coupled with falling international prices of crude oil, has meant that commodity exporters in West and Southern Africa have suffered large current account deficits, worsened by a depreciation of their local currencies.

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