African Lenders Triple Deal Value to $4.7 Billion in Q3

African development lenders backed $4.7 billion worth of financing transactions in the third quarter of 2026 — nearly triple the previous quarter's value — as domestic institutions widened their footprint in funding businesses across the continent.

The figures come from the Q3 Private Capital Activity in Africa Report by Stears Intelligence. African investors participated in 69% of transactions with identified investors, up from 61% in the second quarter and 63% a year earlier.

Who drove the $4.7 billion?

African development finance institutions took part in 30 transactions during the quarter. That compares with 10 in the previous three months and six a year earlier, according to Stears Intelligence.

The roster includes the African Export-Import Bank (Afreximbank), the African Development Bank (AfDB), the ECOWAS Bank for Investment and Development (EBID) and the Africa Finance Corporation (AFC). For the first time across the three periods measured, these African institutions participated in more transactions than development finance lenders headquartered outside Africa, which were involved in 28 deals.

EBID alone accounted for 16 of the African institutions' transactions. That concentration means a relatively small number of lenders drove most of the increase.

Where did the money go?

Private credit was a major driver of the expansion. African investors participated in 45 transactions in the segment, up from 21 in the second quarter and 30 a year earlier. Their share of private credit deals rose to 66%, from 46% and 59% in the respective comparison periods.

African commercial banks also scaled up. They participated in 23 transactions, compared with 16 in the previous quarter and 11 a year earlier.

The domestic shift was sharpest in the larger deals. African investors were involved in 73% of transactions worth at least $25 million, up from 53% in the second quarter and 58% a year earlier. Deals with at least one African investor accounted for 65% of disclosed transaction value, against 36% and 49% in the earlier periods.

Did European capital retreat?

European participation declined to 25% of transactions, from 31% in the second quarter and 34% a year earlier. But the trend varied by asset class.

European lenders remained involved in 20 private credit deals — broadly stable against 22 in the previous quarter and 23 a year earlier. Their reduced market share therefore largely reflected an increase in overall activity rather than a significant fall in deal numbers, the report indicates.

Private equity tells a different story. European participation fell to 11 transactions, from 14 in the second quarter and 22 a year earlier. The number of private equity deals with identified investors declined to 35, from 54 a year ago. European private equity fund managers accounted for only two investor positions in the latest quarter, down from 10 in the previous three months.

Development and infrastructure firms including FMO, A.P. Moller Capital and Meridiam remained active. European venture capital participation held steady at 17 transactions.

What about American and Gulf money?

North American capital stayed concentrated in venture financing. Investors from the region featured in 31 transactions — 24 of which involved Village Capital and General Catalyst.

Gulf investors participated in just 4% of transactions but accounted for 13% of disclosed deal value, reflecting their role in larger financing rounds and lending facilities. Their activity included Mubadala's participation in mobility-financing company Moove and Egyptian payments company Paymob, alongside lending by Abu Dhabi Commercial Bank and Mashreq.

The Q3 data suggests African institutions are no longer marginal players in their own market: they now lead on both deal count and, increasingly, deal size. Whether the next quarter confirms the trend — or whether EBID's outsized role proves hard to sustain — will test how structural this shift really is.

By Amara Osei