Authors :
Oreoluwa Lois Agunbiade
Volume/Issue :
Volume 10 - 2025, Issue 11 - November
Google Scholar :
https://tinyurl.com/28zuuh7h
Scribd :
https://tinyurl.com/4ts7ayzj
DOI :
https://doi.org/10.38124/ijisrt/25nov1463
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Note : Google Scholar may take 30 to 40 days to display the article.
Abstract :
Emerging markets particularly in Sub-Saharan Africa present unique opportunities and challenges for investors
seeking long-term value creation. Despite their high-growth potential, these markets are characterized by volatile
macroeconomic conditions, data fragmentation, regulatory uncertainty, and operational inefficiencies that complicate
traditional investment evaluation. This paper develops a comprehensive decision-making framework for private equity and
institutional investors seeking to allocate capital more effectively across emerging African markets. Drawing from financial
modeling principles, empirical market analyses, and practical observations from investment transactions, this study
proposes a multi-layered approach anchored on five pillars: market attractiveness assessment, operational resilience
evaluation, financial durability modeling, governance and risk benchmarking, and ESG-aligned long-term sustainability
appraisal. Using sectoral case lenses, healthcare, technology, and logistics the paper demonstrates how investors can optimize
due diligence, mitigate structural risks, strengthen portfolio performance, and enhance enterprise value. The findings argue
that evidence-driven investment methodologies significantly improve capital allocation efficiency and reduce the probability
of value erosion in frontier markets. This study contributes to academic and professional discourse by offering a structured,
adaptable framework for investors, policymakers, and entrepreneurs navigating the complexities of private markets in
Africa.
Keywords :
Private Equity, Strategic Finance, Investment Analysis, Emerging Markets, Sub-Saharan Africa, ESG Integration, Value Creation, Financial Modeling, Due Diligence, Frontier Markets.
References :
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- United Nations Principles for Responsible Investment (UNPRI). (2022). ESG Integration in Private Equity: Best Practices Guide. Geneva: UNPRI Publications.
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- World Bank. (2020). Africa’s Pulse: Economic Recovery Post-COVID-19—Structural Transformation and Resilience. Washington, DC: The World Bank.
Emerging markets particularly in Sub-Saharan Africa present unique opportunities and challenges for investors
seeking long-term value creation. Despite their high-growth potential, these markets are characterized by volatile
macroeconomic conditions, data fragmentation, regulatory uncertainty, and operational inefficiencies that complicate
traditional investment evaluation. This paper develops a comprehensive decision-making framework for private equity and
institutional investors seeking to allocate capital more effectively across emerging African markets. Drawing from financial
modeling principles, empirical market analyses, and practical observations from investment transactions, this study
proposes a multi-layered approach anchored on five pillars: market attractiveness assessment, operational resilience
evaluation, financial durability modeling, governance and risk benchmarking, and ESG-aligned long-term sustainability
appraisal. Using sectoral case lenses, healthcare, technology, and logistics the paper demonstrates how investors can optimize
due diligence, mitigate structural risks, strengthen portfolio performance, and enhance enterprise value. The findings argue
that evidence-driven investment methodologies significantly improve capital allocation efficiency and reduce the probability
of value erosion in frontier markets. This study contributes to academic and professional discourse by offering a structured,
adaptable framework for investors, policymakers, and entrepreneurs navigating the complexities of private markets in
Africa.
Keywords :
Private Equity, Strategic Finance, Investment Analysis, Emerging Markets, Sub-Saharan Africa, ESG Integration, Value Creation, Financial Modeling, Due Diligence, Frontier Markets.