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The global value of mergers and acquisitions (M&A) involving companies operating in sub-Saharan Africa reached US$2.9 billion in the first quarter of 2023. It registered an 80% drop compared to the same period in 2022, according to a new report. Experts blame it on the pandemic and the global recession
The global value of mergers and acquisitions (M&A) involving companies operating in sub-Saharan Africa reached US$2.9 billion in the first quarter of 2023. It registered an 80% drop compared to the same period in 2022, according to a new report. Experts blame it on the pandemic and the global recession.
The value of announced Merger and Acquisition (M&A) transactions with any sub-Saharan African involvement reached US $2.9 billion during the first quarter of 2023, an 80 per cent decline compared to the first quarter of 2022 and the lowest first quarter total since 2003, according to the London Stock Exchange Group (LESG). In its Q1’23 investment banking analysis for sub-Saharan Africa, the LESG also stated that the number of sub-Saharan African M&A deals declined 30 per cent compared to a year ago, which represents a nine-year low. Deals involving a sub-Saharan African target totalled US$2.3 billion during the first quarter of 2023, down 81 per cent from 2022 levels and a three-year low. The number of deals declined 28 per cent from last year. Inbound deals involving a non-Sub-Saharan African acquiror declined 85 per cent to US$1.5 billion, while domestic deals declined 64 per cent to US$838.6 million. Sub-Saharan African outbound M&A totalled US$384.1 million, down 53 per cent compared to the value recorded during 2022 and a nine-year low.”
Materials deal making totalled US$699.4 million, or 30 per cent of first quarter 2023 Sub-Saharan African Involvement M&A activity. This was an increase of 34 per cent compared to a year ago. Energy & Power and Consumer Products & Services rounded out the top three sectors for first quarter 2023 M&A activity. Nigeria was the most targeted nation, followed by Zimbabwe and South Africa. Java Capital (Proprietary) Ltd topped the Sub- Saharan African involvement announced M&A financial advisor league table during the first quarter of 2023.
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According to the report, an estimated US$64.8 million worth of investment banking fees were generated in the region during the first quarter of 2023, down 50 per cent from the first quarter of 2022 and the lowest first quarter total since 2010. It also stated that fees declined 66 per cent compared to the fourth quarter of 2022.
