BofA’s Mensah Sees ‘Healthy Cleanup’ in Private Markets

The private credit markets that have fueled growth across Africa's emerging economies are undergoing a significant correction, according to senior banking executives. Bank of America's Bernard Mensah, who oversees international operations for the institution, recently highlighted what he characterizes as "a healthy cleanup" in segments of the private credit space—a development that European investors and entrepreneurs should carefully monitor. For the past five years, private credit has become increasingly attractive to European institutional investors seeking higher yields in African markets. The combination of limited public bond markets, restricted bank lending, and strong demand from infrastructure and energy projects created an environment where private credit providers expanded rapidly, often with limited oversight and inconsistent underwriting standards. This expansion, while democratizing access to capital for African businesses, also introduced vulnerabilities that are now materializing. The current market adjustment represents a natural correction in an asset class that grew too quickly without sufficient standardization or transparency. Multiple private credit funds have reported underperforming portfolios, with borrowers in sectors ranging from logistics to renewable energy facing refinancing challenges. These pressures are forcing a recalibration across the market—both in pricing expectations and in the rigor applied to due diligence and credit assessment. For European investors