Global And African M&A Outlook 2025: Quality Over Quantity

In 2024 and early 2025, global and African M&A activity reflected a clear trend: quality over quantity. While the number of deals declined, the total value of transactions rose, pointing to a focus on high-value, strategic investments.

Global Trends

• Fewer but larger deals are being made, particularly in the US, where deals over USD 100 million surged.
• Key drivers include increased infrastructure investment, especially in AI, data centres, and smart technologies.
• AI is influencing acquisition strategies, as companies look to enhance efficiency and competitiveness.
• Private equity remains a major player, with significant dry powder and pressure to exit long-held assets.
• Uncertainty due to geopolitical tensions, tariffs, and high interest rates may impact deal volumes but not halt activity.

Africa-Specific Trends

• Africa mirrored the global pattern with lower deal volume but higher deal value in 2024.
• South Africa led with over 60% of deal value, followed by Nigeria and East Africa, where early-stage tech deals stood out.
• Financial services (30% of all transactions), consumer services, and digital infrastructure are key growth sectors.
• AI and tech-related M&A gained momentum and are expected to continue shaping the deal landscape.

Looking Ahead

Through the second half of 2025 and into 2026, M&A will be driven by:

• Strategic, sector-focused deals
• Investment in digital infrastructure and technology
• A renewed role for private equity

Despite economic and policy headwinds, dealmaking will remain resilient, with long-term value creation, resilience, and digital transformation at the forefront.

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