Investing In Africa Is A Different Game. Here Are The Rules

Description

Private equity in Africa has returned less than 10% IRR over the last decade. The target? 20%. Andrew Alli has spent 30 years figuring out why. He led infrastructure investments at the IFC, then became CEO of Africa Finance Corporation—where he secured an A-minus credit rating and led a Euro bond that was 5-6x oversubscribed. But this conversation goes far beyond finance. We unpack why private equity has underperformed across Africa, what's really blocking development, and why the diaspora's most valuable asset isn't money—it's know-how. Andrew breaks down: • Why African PE returns less than 10% IRR when firms target 20% • The 30% ownership trap: why PE firms can't turn companies around • Dutch Disease: how oil destroyed Nigeria's manufacturing base • Why 54 African countries is "way too many" • Energy and productivity: the two dimensions that drive development • 95% of AFC's troubled investments shared one flaw: governance (not corruption—culture) • China in Africa: "When Europeans visit, I get a lecture. When the Chinese visit, I get a stadium." • The diaspora's real value: know-how, not cash • John Rawls and why justice is the foundation of national unity This isn't just about investing. It's about understanding the game you're playing. Essential viewing for founders, investors, and diaspora professionals building in or with Africa. AUNTY'S SCULPTURE COLLECTION A limited collection by Anthony Azekwoh x Afropolitan. 100 pieces. Application only. Apply here: https://formless.ai/c/q1GB9jAzOWTr WHERE TO FIND ANDREW ALLI Twitter: https://x.com/afalli LinkedIn: https://uk.linkedin.com/in/andrew-alli-a5029a1 EPISODE SPONSORS Vban - Open a free global account in minutes. Use code AFROPOLITAN: https://vban.com CONVO BY AFROPOLITAN Book 1:1 calls with Africa's boldest thinkers: https://convo.vip/ AFROPOLITAN Twitter/X: https://x.com/afropolitan Instagram: https://www.instagram.com/afropolitanpodcast Newsletter: https://www.afropolitan.io/newsletter TIMESTAMPS: 0:00 – Intro 1:35 – One uncomfortable truth: You have to wor