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Africa currently accounts for 2–3% of the global M&A market value—a modest share that belies the continent’s immense potential. While foreign investors’ interest in Africa continues to grow, several structural challenges hinder the successful execution of deals. These include limited access to reliable information, currency volatility, diverse and often complex regulatory frameworks, lack of tax certainty, and, in some cases, local ownership requirements.
14 May 25
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A recent report by KPMG on dealmaking in Sub-Saharan Africa also highlights a persistent mismatch in price expectations—where sellers price in future growth and buyers apply risk-adjusted discounts—as a key obstacle. At a macro level, political instability and economic turbulence have continued to act as brakes on deal flow.
The years 2021 and 2022 marked the peak of M&A activity in Africa, fueled by attractive valuations, abundant natural resources, and high growth potential. These conditions were further catalysed by robust economic growth and post-pandemic legislative reforms across various jurisdictions that created investor-friendly conditions. According to UNCTAD’s Economic Development in Africa Report 2024, private equity firms were particularly active during this period, targeting high-growth sectors such as technology, media and telecommunications (TMT), energy, mining, and utilities.
By contrast, 2023 witnessed a downturn in M&A activity due to persistent inflation, rising interest rates, geopolitical uncertainty, and cautious investor sentiment globally, as observed in The Post’s February 2025 review of African M&A activity.
In 2024, Africa’s M&A market presented a paradox: a drop in deal volumes but a sharp rise in value. A total of 269 deals were completed, totalling USD 12.5 billion. This represents a 10% decline in volume but an 85% surge in deal value compared to 2023. This shift, as The Post notes, was largely driven by renewed global interest in Africa’s mineral wealth, notably in gold and critical minerals, with mining and energy transactions driving large-ticket deals.
Understanding sectoral trends is crucial for stakeholders. Investors use this data to identify where capital can be most effectively deployed, while legal and financial advisors can better anticipate regulatory issues and optimise transaction structures. Governments and policymakers can also use deal trends as a barometer for economic health and to determine where targeted reforms or incentives may yield the greatest impact—insights supported by KPMG’s 2024 analysis of M&A activity in the region.
In this article, we explore the key trends, challenges, and opportunities shaping M&A activity across Africa.
Click here to download and read the full article.
Should you require more information about the article, please do not hesitate to contact Dominic Rebelo or Edwin Odundo.
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Contributor
Ruth Muthama – Associate