Economy
Private Credit Overtakes Equity as Preferred Funding Model in Africa—Report
By Adedapo Adesanya
Private credit is rapidly replacing equity-led growth as the dominant financing model across Africa, marking a fundamental shift in how businesses on the continent access capital, according to a new industry report released by TheBoardroom Africa.
The report, which draws insights from 30 senior executives, founders, investors and policymakers across more than 20 sectors, indicates that investors are increasingly prioritising cash flow stability and operational resilience over ambitious growth narratives and market-size projections.
According to the findings, the shift comes as global venture capital funding continues to contract and exit opportunities become more limited, forcing African businesses to adapt to a new financing reality.
Recall that the composition of capital has shifted meaningfully, with debt also playing a much larger role in sustaining funding volumes. In April 2026, startups raised $110 million, marking the lowest monthly funding volume since March 2025, when startups raised $52 million, and falls significantly short of the previous 12-month average of $275 million per month.
The report shared with Business Post said structured debt facilities, revenue-linked financing instruments and risk-partitioned credit solutions are gaining prominence as investors seek more predictable returns in challenging economic conditions.
The report notes that access to capital is no longer primarily driven by growth potential but by a company’s ability to demonstrate sustainable performance and financial discipline. As a result, accurate risk pricing, strong repayment records and operational credibility are becoming critical factors in attracting funding from both local and international investors.
TheBoardroom Africa, the continent’s executive search and leadership advisory firm, in the report identified four major structural shifts reshaping capital allocation, regulatory priorities and competitive positioning across African markets.
Beyond the transformation in financing models, the report highlights the growing role of artificial intelligence (AI) as an essential component of business operations. Across sectors such as financial services, healthcare, energy and compliance, AI has evolved from an experimental technology into a critical infrastructure supporting fraud detection, credit underwriting, workflow optimisation and regulatory monitoring.
The report also noted that competitive advantage is increasingly determined not by AI adoption alone but by the governance frameworks organisations establish to manage automated systems responsibly.
“Boards are increasingly expected to interrogate explainability, accountability, and automated decision-making as central governance concerns, not technical matters to delegate downward,” it said.
In healthcare, the study points to a significant transition from volume-based care models to value-based systems focused on patient outcomes and cost efficiency. Healthcare delivery is also becoming more decentralised, with outpatient centres, community-based facilities and virtual platforms playing a greater role in service provision.
The report further identifies impact investment as an important complement to public healthcare funding, helping to address financing gaps while supporting innovation and accessibility across the sector.
Another major trend identified is the evolution of corporate governance from policy-driven compliance to evidence-based accountability. Environmental, Social and Governance (ESG) considerations, AI ethics, cybersecurity and social impact metrics are increasingly converging into a single framework through which organisations are assessed.
According to the report, investors and stakeholders are placing greater emphasis on demonstrable outcomes and audit trails rather than policy statements alone, making institutional integrity a key determinant of long-term competitiveness.
Commenting on the findings, the Founder and Chief Executive Officer of TheBoardroom Africa, Ms Marcia Ashong-Sam, said Africa’s leaders are increasingly building institutions capable of demonstrating the continent’s investment potential.
She noted that many of the most significant discussions shaping Africa’s future often remain confined to boardrooms and investment committees, adding that the report seeks to bring those insights into the public domain.
The report advised that the businesses best positioned for success will be those capable of proving resilience, governance strength and sustainable performance in an increasingly demanding investment environment.
By Aduragbemi Omiyale
A new report by Stanbic IBTC Bank Nigeria has revealed that in May 2026, growth momentum strengthened in the Nigerian private sector, with the Purchasing Managers’ Index (PMI) rising to an impressive 54.1 points from 52.4 points in April.
It was disclosed that output and new orders increased in the month under review, with firms ramping up their purchasing accordingly, though expansions in employment remained muted.
On the price front, higher fuel costs continued to cause sharp increases in input costs and output prices, but rates of inflation softened from April.
The rise in headline PMI signalled a solid monthly improvement in business conditions and one that was the most pronounced since August 2025. The health of the private sector has now strengthened in four consecutive months.
Central to the solid improvement in business conditions were marked and accelerated expansions in both output and new orders during May. Rates of growth hit seven- and nine-month highs respectively. Anecdotal evidence pointed to improving customer demand and the launch of new products.
Output growth was recorded across all four broad sectors covered by the survey. Improving demand, and the prospect of further growth in the months ahead, led companies to expand their purchasing activity and inventories in May.
Here too, rates of expansion quickened from April and were sharp. Efforts to secure inputs were helped by an improvement in vendor performance, as prompt payments, goods arrangements with suppliers and better road conditions helped to speed up deliveries.
Employment continued to rise only slightly midway through the second quarter, although sustained job creation has now been recorded in each month for a year. Meanwhile, backlogs of work increased for the fourth successive month amid customer payment delays, material shortages and power failures.
“Private sector activity in Nigeria improved to its best level in nine months, with the headline PMI rising to an impressive 54.1 points in May from 52.4 points in April.
“This impressive business condition was primarily due to accelerated expansion in both output (56.6 vs April: 53.4) and new orders (57.0 vs May: 54.6) as evidence pointed to improving customer demand and the launch of new products. Input prices maintained an uptrend, but the pace of increase eased for the second consecutive month.
“This is also reflected in higher output prices with the steepest increase seen in the manufacturing and agriculture sectors,” the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, commented.
Last month, the National Bureau of Statistics (NBS) disclosed that the Nigerian economy grew by 3.89 per cent year-on-year in the first quarter of 2026.
By Dipo Olowookere
The three-day trading sessions of last week witnessed the exchange of 2.398 billion stocks valued at N111.480 billion in 241,313 deals on the floor of the Nigerian Exchange (NGX).
In the preceding week, which had five trading days, market participants bought and sold 3.875 billion stocks worth N161.757 billion in 334,745 deals.
Last week recorded shorter trading days due to public holidays declared by the federal government on Wednesday, May 27, and Thursday, May 28, 2026, for Eid al-Adha celebrations.
In the week, financial shares dominated with 1.656 billion units sold for N48.229 billion in 94,812 deals, contributing 69.07 per cent and 43.26 per cent to the total trading volume and value, respectively.
Services equities followed with 265.448 million units worth ₦4.530 billion in 19,443 deals, and ICT stocks traded 101.848 million units valued at N9.163 billion in 24,858 deals.
Fidelity Bank, Access Holdings, and The Initiates accounted for 903.681 million units worth ₦19.227 billion in 22,238 deals, contributing 37.69 per cent and 17.25 per cent to the total trading volume and value, respectively.
Business Post reports that 34 equities appreciated in the week versus 38 equities in the previous week, 51 stocks depreciated compared with 55 stocks of the previous week, and 61 shares remained unchanged, in contrast to 53 shares a week earlier.
International Energy Insurance topped the gainers’ chart after chalking up 32.55 per cent to trade at N4.52, Sovereign Trust Insurance appreciated by 20.61 per cent to N2.75, Tantalizers expanded by 13.40 per cent to N4.89, Airtel Africa soared by 10.00 per cent to N3,655.70, and NEM Insurance gained 9.67 per cent to quote at N32.90.
Conversely, Dangote Sugar topped the losers table after it shed 18.22 per cent to close at N71.15, The Initiates lost 15.98 per cent to trade at N28.40, Premier Paints declined by 10.00 per cent to N33.75, CAP also depreciated by 10.00 per cent to N179.10, and Transcorp Power crashed by 9.97 per cent to N245.50.
At the close of trades, the All-Share Index (ASI) and the market capitalisation appreciated by 0.27 per cent each to 250,385.47 points and N160.509 trillion, respectively.
Similarly, all other indices finished higher except the CG, premium, banking, AFR Bank Value, AFR Div Yield, MERI Growth, MERI Value, consumer goods, industrial goods and growth indices, which depreciated by 2.04 per cent, 0.18 per cent, 2.43 per cent, 1.57 per cent, 5.25 per cent, 1.37 per cent, 1.10 per cent, 1.52 per cent, 0.05 per cent and 1.04 per cent, respectively.
By Adedapo Adesanya
Aradel Holdings Plc has extended the filing of its 2025 audited financial statements and first-quarter 2026 unaudited financial statements after failing to meet its previously announced May 29, 2026, target.
The company disclosed in a notice to the Nigerian Exchange (NGX) Limited, shareholders and the investing public that both reports will now be released on or before June 19, 2026, citing challenges arising from the consolidation of its recently acquired additional 40 per cent equity interest in ND Western Limited.
Aradel had earlier informed the market on March 2, 2026, that the delay in filing its financial results was linked to the acquisition and subsequently indicated that the reports would be released on or before May 29, 2026.
The organisation said unforeseen complexities emerged during the consolidation process following the integration of the newly acquired stake into the group’s reporting framework.
According to the notice, “The delay is due to unforeseen complexities encountered in the consolidation process arising from the integration of the newly acquired interest in ND Western Limited into the Group’s reporting framework. Additional time is required to ensure that the consolidated results fairly present the financial position of the enlarged Group in line with applicable accounting standards and regulatory requirements.”
“The company is working closely with its external auditors to complete the process without compromising the quality, accuracy or integrity of the financial statements. Both the FY 2025 Audited Financial Statements and the Q1 2026 Unaudited Interim Financial Statements will now be released on or before 19 June 2026,” Aradel said.
The extension means the company’s closed period, which commenced on January 1, 2026, will remain in effect until 24 hours after the financial statements are released to the market. During the closed period, insiders and other restricted persons are prohibited from trading in the company’s shares.
The energy firm noted that trading in its securities by affected persons would resume after the expiration of the extended closed period. The oil producer further reiterated its commitment to regulatory compliance and transparency in its financial reporting.
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