Compound is large in African capital (7)
I believe the answer is:
algiers
'african capital' is the definition.
(capital of Algeria)
'compound is large' is the wordplay.
'compound' is an anagram indicator.
'is'+'large'='islarge'
'islarge' anagrammed gives 'ALGIERS'.
'in' acts as a link.
(Other definitions for algiers that I've seen before include "North African capital" , "NW African capital" , "North African port" , "Capital city" , "N. African port" .)