I&M Burbidge Capital discloses that there has been 31 deals across East Africa as of April 2020 with a total disclosed deal value of KSh38.5 billion ($360 million).
An increasing interest, particularly by development finance institutions, in companies that are now crucial during this time such as delivery and logistics companies has been noted, and is expected to increase as more investors are drawn in by the humanitarian and economic value of such investments.
In April 2020, there were 9 deals announced valued at $128.2 million, marking the highest number of deals disclosed in a month since the beginning of the year, and coming in two months after the confirmation of COVID-19 cases in the region.
The deal of the month in April was the acquisition by Egypt’s Commercial International Bank of a controlling stake in Mayfair Bank. This is the first by an Egyptian bank in the region and is expected that the acquisition will serve as a springboard for the Egyptian lender’s expansion into East Africa.
Kenya leads with the number of deals across East Africa having secured 21 deals YTD. For instance, regional beer giant East African Breweries Ltd was expected to spend at least $18.7 million on the purchase of an extra stake in Serengeti Breweries. In April, the National Treasury raised its stake in Consolidated Bank to 93.4% after converting KSh1.6 billion ($15.03 million) debt into shares.