A new report highlights significant salary gaps in Africa’s investment industry, raising concerns about talent retention. The African Investment Salaries Report, published in February 2025, reveals that investment professionals in Africa earn considerably less than their international counterparts.
For example, analysts in Africa earn around $21,000 annually, while those outside the continent earn approximately $28,000. This disparity widens at higher levels, with investment managers and principals in Africa earning about $70,000, compared to $110,000 internationally.
Salary Disparities and Their Impact
These differences present a challenge for African investment firms aiming to attract and retain skilled professionals. Prepared by Dream VC and A&A Collective, the report is based on 209 responses from 28 African countries.
It analyzes salaries, bonuses, and career progression in venture capital, private equity, and related fields. The findings indicate that African firms may struggle to compete with international funds, particularly when recruiting experienced talent.
Fund Size and Structure Influence Compensation
The report notes that the median assets under management for African venture capital funds are around $50 million, while private equity funds manage approximately $87.5 million. This limits the resources available for compensation and other expenses.
For instance, a venture capital firm managing $25 million with a 2% annual management fee generates roughly $500,000 annually for salaries, operations, and other costs. This constraint makes it difficult to match the compensation packages offered by larger international funds.
Carried Interest: An Uneven Incentive
In addition to salaries, the report examines the distribution of carried interest, or carry, a key component of long-term compensation in venture capital and private equity. Carry enables eligible professionals to share in investment profits, encouraging long-term commitment.
However, the study finds that carry is often concentrated among senior professionals, with analysts and associates frequently excluded. Even at senior levels, allocations can be inconsistent. This disparity could affect talent retention, as venture capital requires experienced professionals to see investments through to completion.
Africa‘s investment industry has drawn a young, educated workforce, with over 70% of survey participants aged 25-34. Approximately 40% hold a master’s degree, and 39% have studied internationally. Women constitute about 43% of respondents, although their representation decreases in senior roles.
While the industry has attracted ambitious professionals, it faces challenges in establishing clear career paths and promoting diverse leadership. Compensation is a significant factor, but professional development, mentorship, and involvement in decision-making processes are also essential.
The 2025 study offers valuable benchmarks, despite its relatively small sample size. Dream VC and A&A Collective have initiated a follow-up survey in 2026 to collect more detailed data across investment and fund-support roles.
This commitment to transparency is key. Improved data can help professionals negotiate fairly, assist fund managers in creating competitive packages, and provide investors with a clearer understanding of the challenges faced by African funds.
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