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South Africa tops mergers and acquisition deals in SSA, Nigeria comes second- KPMG report 



Recent data from KPMG reveals that South Africa has emerged as the top choice for mergers and acquisition deals in Sub-Saharan Africa, surpassing Nigeria, which is renowned for its population of over 200 million. 

The report titled “Doing Deals in Sub-Saharan Africa” examines the volume of deals, the macroeconomic state of the Sub-Saharan region and how attractive it is to foreign investment and capital.  

According to the report, five of the top ten mega deals in the region were in South Africa, two of the deals were from Nigeria while Tanzania, Cameroon and Angola had one place each in the top ten.  

The report states,

In total, there were 297 deals valued at $19.2billion in the region in 2022 with energy and mining deals dominating the top ten in the region.

The energy and mining industry accounted for 64 transactions raking in $7.8 billion for the region.  

South Africa also stood out with two significant mega-deals in the energy and mining sector acquisitions, a category that held a prominent presence in the list of the top 10 M&A deals for 2022. 

It states,

Technology, Media, and Telecom (TMT) sectors, as well as financial services, have garnered notable interest in deal-making activities throughout the region.

Nevertheless, the total deal value for TMT targets in Sub-Saharan Africa in 2022 was notably lower compared to other sectors, a somewhat surprising trend. 

The report further projects that in the next two years, South Africa and Nigeria will account for a “lion’s share” of acquisitions in the SSA region.

KPMG’s result of the survey of potential investors shows that 50% of investors will be looking towards South Africa with about 30% focusing on doing deals in Nigeria.  

However, all is not bright for the region as challenges such as political instability, corruption, and macroeconomic volatility continue to deter potential investors.  

The report noted,