In this article, Pacôme-H.D. Zahabi, Partner at Verod, writes about why we are expanding into Francophone markets. It builds on Pacôme's appearance at the FT Africa Summit 2026, where he outlined our approach for investing in Côte d'Ivoire and beyond.

Francophone Africa has been a recurring footnote in the African private capital story – widely acknowledged but consistently under-allocated. Francophone countries are home to over a quarter of Africa's population. However, the region receives just 8% of private capital deal value and 10% of deal volume. The macro case is well rehearsed. Less often discussed is what it takes to turn that case into successful investments on the ground. Our move into Francophone markets has been years in the making. It extends an established regional strategy, built over nearly two decades of investing, to markets where we now see attractive opportunities for disciplined private equity investment.

The macro case is known

But it’s worth restating the fundamentals.

Francophone West and Central Africa are made up of two monetary unions, each built on the same institutional model: a regional central bank, a banking commission and a regional development bank. The eight-country West African Economic and Monetary Union (WAEMU) uses the West African CFA franc (XOF), and the six-country Economic and Monetary Community of Central Africa (CEMAC) uses the Central African CFA franc (XAF). Both currencies are pegged to the euro at a fixed rate, and that peg has been in place since 1999. The euro pegs have helped keep inflation low and limited the currency volatility that has eroded dollar returns in other African markets. They do not, of course, remove currency risk altogether. Investors remain exposed to euro–dollar movements, and convertibility and transfer risks still have to be underwritten deal by deal.

Separately, OHADA’s harmonised business law, with a common court of justice and arbitration in Abidjan, applies across both unions and beyond with a degree of legal consistency few regions can match.

Capital has followed. According to AVCA, between 2012 and mid-2024, companies in the two unions attracted 229 private capital deals worth around US$4 billion, with the WAEMU – led by Côte d’Ivoire and Senegal – accounting for 195 of those deals.

The execution infrastructure is effective

There can be a misconception about Francophone African markets – that the market infrastructure is less sophisticated and they are less investable than other markets.

This perception, rather than any real operational limitation, has held back larger allocations. The constraints often cited – thin deal flow, limited GP presence and narrow exit routes – have been easing steadily for years.

The reality is that there are highly sophisticated entrepreneurs, corporates and financial institutions operating in Francophone markets. The challenge is often less about the absence of opportunities and more about understanding how to navigate the local ecosystem, relationships, regulation and execution. We understand this very well.

Deal volume in Francophone markets is growing. According to AVCA research, average annual deal volume across all Francophone countries nearly doubled from 23 deals per year (2012–2020) to 44 deals per year (2021–2023).

Like anywhere, exit markets are where discipline matters most. But the trajectory is right, and the firms positioned to capture value in Francophone markets are those building on the ground now.

Why Verod, and why now

We have spent nearly two decades building a mid-market private equity platform in Nigeria and Ghana: three fund vintages, more than 40 investments across PE and venture capital. Our playbook – governance frameworks, management build-out, operational enhancement, disciplined exit planning – was built across multiple investment cycles. Our experience has reinforced a simple lesson: attractive demographics and economic growth are necessary, but insufficient, conditions for successful private equity investment. What makes the difference is identifying fundamentally sound businesses with strong management, sustainable cash generation and credible pathways to liquidity. These opportunities increasingly exist in Francophone markets, and our rooted expansion into the region reflects our thesis that successful investing requires deep local knowledge, disciplined execution and active ownership.

Extending this playbook into new markets starts with detailed, strategic research on four levels: a) the country itself – macro conditions, the cost of risk, infrastructure, the business environment and the maturity of the private sector; b) the sector value chains we invest in, and where the gaps and opportunities for value creation lie; c) the companies themselves – their business models, governance, operations, financial performance, competitive position and impact; and d) the regional corridors they can grow into, along with the currency and cross-border risks that come with them.

We have applied this framework to Côte d’Ivoire, Senegal, the wider WAEMU and Cameroon.  The results support our view that the institutional framework is in place and the investable businesses are there. Over the past two years we have built a team on the ground with seasoned professionals, legal and regulatory knowledge across OHADA member states and local advisory networks. This team is building a strong pipeline, with transactions at an advanced stage.

Meanwhile, there is increasing interest from domestic and regional institutional investors in private equity as an asset class. This is paving the way for strengthening the local pedigree of the LP investor base of funds. When local institutions – pension funds, sovereign and public investment vehicles, insurers and family offices – commit to private equity, they show confidence in the regional risk and make it easier for international investors to follow or confirm commitment. Partnerships between these institutions and experienced, hands-on managers will shape how the market develops.

Growth and confidence will continue to draw capital to the region; discipline will determine what that capital earns. That is exactly what we at Verod bring to every investment. We are adapting our value creation approach, refined over the last 18 years, to deliver in Francophone markets. The opportunity ahead is broad. We are excited to explore it with all relevant partners who share our conviction.