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How to invest in African companies: public, private and indirect routes

A practical overview of accessing listed equities on the JSE, NGX and NSE, Africa-focused ETFs and funds, and private-market opportunities in startups and growth companies, together with the main risks of currency volatility, liquidity and regulation.

  • Africa Markets
  • 6 min read

In short

  • The JSE dominates African listed markets with $1.45 trillion market cap in 2026; NGX and NSE provide additional listed exposure in Nigeria and Kenya.
  • ETFs such as VanEck AFK and newer local products like Tanzania's iAfrica sector funds offer diversified access to listed African companies.
  • Private investment typically occurs through venture or private equity funds; direct startup deals require networks and carry high illiquidity.
  • Currency volatility, low liquidity outside the JSE, and differing regulatory regimes are the main risks for both public and private routes.
  • New platforms and cross-border structures are gradually improving access, but thorough due diligence remains essential in every jurisdiction.

Listed equities on Africa's main exchanges

The most straightforward route for new investors is buying shares in companies listed on established African exchanges. The Johannesburg Stock Exchange (JSE) remains the continent's largest by far, with market capitalisation of approximately $1.45 trillion as of mid-October 2026. Nigeria's NGX ranks second at around $117-123 billion, followed by the Nairobi Securities Exchange (NSE) at roughly $25-31 billion.

South Africa's JSE offers deep liquidity and a broad range of sectors including mining, financial services and consumer goods. International investors can access it through brokers such as Interactive Brokers or local platforms like EasyEquities. In Nigeria, retail investors often use apps such as Bamboo or Trove to buy NGX-listed stocks including banks and telecom operators. Kenya's NSE provides exposure to companies in banking, telecommunications and agriculture.

Recent cross-border experiments, such as the Dangote Petroleum Refinery IPO, have tested depositary receipt structures to allow investors in Kenya, Uganda and other markets to participate without opening accounts in Nigeria. These mechanisms remain limited but signal gradual improvement in intra-African access.

Africa-focused ETFs and listed funds

For diversified exposure without selecting individual stocks, exchange-traded funds (ETFs) provide an entry point. The VanEck Africa Index ETF (AFK), which tracks an index of companies with significant African revenues, has approximately $94.5 million in assets and an expense ratio of 0.76%. Its year-to-date performance as of late October 2026 stood at -1.31%, reflecting broader market volatility.

Newer local products have also emerged. In Tanzania, iTrust Finance launched three sector-specific ETFs in October 2026 – iAfrica Financials, iAfrica Mining & Energy, and iAfrica Telco & Tech – targeting listed companies across the continent. Each fund targeted TZS 10 billion with a minimum subscription of TZS 100,000, offering Tanzanian investors broader reach through the Dar es Salaam Stock Exchange.

These vehicles reduce single-name risk but still carry the underlying market, sector and currency exposures of their holdings. Investors should review holdings, tracking error and liquidity before allocating.

Private equity, venture capital and direct startup investment

Many high-growth African companies remain private. Venture capital and private equity funds provide indirect exposure, with 2026 seeing continued activity despite selectivity. Funds have raised capital for early- and growth-stage technology companies, while larger private equity deals have targeted infrastructure and established businesses.

Individual accredited investors can sometimes access these through fund-of-funds or platforms that connect to managers. New initiatives such as Investable.Africa, launched in open beta in late October 2026, aim to match startups across 54 countries with vetted investors via a database and deal-flow tools.

Direct angel or pre-IPO investment requires significant due diligence, networks and tolerance for illiquidity. Minimum ticket sizes often start at tens of thousands of dollars, and exits may take five to ten years through trade sales or eventual listings.

View recent African private company funding rounds

Pre-IPO, secondary markets and demonstration access

Secondary markets for private shares have developed slowly. Platforms facilitating verified trading in unlisted companies can offer earlier liquidity, although volumes remain thin. Some investors gain exposure ahead of planned IPOs, such as those rumoured for certain fintech unicorns targeting exchanges in South Africa, Nigeria or international venues.

For those new to private markets, simulated environments allow testing of pricing and order mechanics without real capital at risk. Africa Markets' trading demonstration uses sandbox funds to place limit orders in selected African private companies, with periodic call auctions determining clearing prices.

Try the trading demonstration with demo cash

Key risks: currency, liquidity, regulation and governance

Currency volatility remains a primary concern. Many African currencies have depreciated against the dollar in 2026 amid global pressures, eroding returns when converted back to hard currency. Hedging is possible but expensive and not always available for smaller markets.

Liquidity varies sharply. The JSE offers daily volumes in the billions of rand, while many other exchanges see far thinner trading. Private investments are inherently illiquid, with exits dependent on buyer appetite or IPO windows that have been limited for African tech in recent years.

Regulatory environments differ by jurisdiction. South Africa, Nigeria and Kenya have relatively mature frameworks, but enforcement, capital controls and foreign-exchange availability can change. Governance standards also vary; thorough due diligence on management, ownership and financial controls is essential in both public and private deals.

Political and macroeconomic risks, including commodity dependence in some economies, add further layers. Diversification across countries, sectors and asset types is widely recommended to mitigate concentration.

What to watch next

Monitor planned listings and secondary offerings on the JSE, NGX and NSE, as well as continued growth in Africa-focused ETFs and venture funds. Currency liberalisation measures in Nigeria and elsewhere could ease repatriation, while maturing private markets may produce more visible exits in 2027.

Explore this topic on Africa Markets

Readers can review researched profiles of recent African private-company funding rounds on the deals page, including large 2026 raises such as Moove's $250 million Series C and Flutterwave's Series E at over $3.2 billion valuation. The trading demonstration lets verified members observe how call auctions price shares in listed private companies using demo cash. Early access to the full platform is available at early access. Additional commentary appears in the insights section.

Sources

Researched with AI from public sources and edited by the Africa Markets team before publication. It is information, not advice. See our Disclosures.

Deals mentioned

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