Market Insights Financial Corporate Finance

Mergers and Acquisitions - Africa

Africa

In 2024, it is estimated that the transaction value in the Mergers and Acquistions market market in Africa will reach US$18.16bn.
This projection indicates an expected annual growth rate (CAGR 2024-[yeartoday]) of NaN%, resulting in a total projected amount of US$18.16bn by 2024.
Furthermore, the average transaction value in the Mergers and Acquistions market market in Africa is anticipated to amount to US$62.79m in 2024.
When compared globally, it is noteworthy that the United States is expected to have the highest transaction value, reaching US$1,091.00bn in 2024.
In the African market for Mergers and Acquisitions, Nigeria is emerging as a key player due to its thriving oil and gas sector.

Market

Region

Region comparison

Currency

Analyst Opinion

The Mergers and Acquisitions market in Africa is witnessing a significant uptick in activity.

Customer preferences: A key driver behind the increasing M&A market in Africa is the growing preference among customers for diversified portfolios and expanded market reach. Companies are looking to leverage M&A deals to access new markets, technologies, and talent, ultimately enhancing their competitive position in the region.

Trends in the market: In South Africa, there is a noticeable trend towards consolidation in certain industries such as telecommunications and financial services. Companies are strategically merging to gain economies of scale, improve operational efficiency, and capitalize on synergies. This trend is driven by the desire to stay ahead in a competitive market landscape and adapt to changing consumer demands.

Local special circumstances: Nigeria, on the other hand, is experiencing a surge in cross-border M&A activities. The country's large consumer market and natural resources make it an attractive destination for foreign investors seeking growth opportunities. Additionally, regulatory reforms and government initiatives aimed at improving the ease of doing business have further fueled M&A deals in Nigeria.

Underlying macroeconomic factors: The overall economic growth and stability in the region are playing a crucial role in driving M&A activities. Favorable demographic trends, urbanization, and the rise of the middle class are creating a conducive environment for business expansion through acquisitions. Additionally, the increasing investor confidence in the region's economic prospects is boosting deal-making activities across various sectors in Africa.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.