Resourceful dealmaking: Outlook for M&A in Africa

This report provides valuable insight into the African M&A market from senior-level investors, from within and outside Africa. It also highlights the continents rising stars, creating investors with fresh opportunities to do business.

Report highlights include:

• Political uncertainty and relatively weak economic fundamentals have negatively affected M&A activity within the African continent. A fall-off in deals was seen in the first half of 2017 compared to a relatively buoyant 2016.
• Political risk will be a major obstacle to dealmaking in Africa over the next 12 months, according to 84% of respondents. Other risk factors include transparency concerns and completeness of information, which ranked joint highest alongside political risk (84%), and compliance and integrity issues (80%).
• Ethical and compliance considerations are another major influencing factor on African M&A. Almost three-quarters (72%) say that getting caught up in a regulatory or criminal investigation is one of the highest risk in relation to a target company’s ethics and compliance standard.
• For some of Africa’s continents, 2018 will see greater political stability and a more favourable economic and business environment which is expected to boost M&A activity in the coming year.