The DealMakers Report – a publication specialized in monitoring and analyzing the mergers and acquisitions (M&A) market, capital markets, and financial transactions – highlighted the “remarkable resilience” of South Africa, which captured nearly half of all deals on the continent during the first half of this year.
The continent’s most industrialized nation defied Africa’s overall downward trend, as mergers and acquisitions across the region have been in decline for the past four years, the document notes.
According to the report, cited by Expansão, over the last four years, rising global interest rates, the strong U.S. dollar, and persistent political instability in several of Africa’s key economies have pushed many investors toward more mature and lower-risk markets, leaving the continent in a state of contraction.
South Africa accounted for almost 45% of all African transactions in the first half of the year, standing out as the continent’s only major growth market.
South Africa remains the only country bucking this trend, representing nearly 45% of all transactions across Africa in the first six months of the year. Excluding South Africa, the total value of mergers and acquisitions on the continent reached $4.7 billion, a 16% drop compared to last year and 61% below levels recorded in the same period in 2022, according to Marylou Greig, Director of DealMakers Africa.
The volume of deals also reflected this decline — down 21% compared to 2024 and 68% lower than in 2022. Despite this retreat, the energy sector remained the main driver of activity, with two major deals leading the charts, together valued at $2.16 billion, nearly half of all concluded agreements.
In the energy sector, the period was marked mainly by divestments in oil and gas assets by multinationals and regional consolidations among African players seeking greater energy autonomy, reports Ecofin Agency.
These include Eni’s sale of stakes in various oil and gas assets in Côte d’Ivoire and the Republic of the Congo to Vitol, a global energy trading company, for an estimated $1.65 billion, and TotalEnergies’ sale of its 12.5% stake in the Bonga offshore field in Nigeria to Shell and Italian energy company Agip, valued at $510 million.
Source: Diário Económico
