The value of disclosed merger and acquisition transactions involving Sub-Saharan African nations fell to an eight-year low of $25.7 billion in 2020 from the $67.6 billion recorded in 2019, a 62% decline according to Refinitiv’s SSA Investment Banking Review 2020.
Kenya, Uganda, South Africa, the Democratic Republic of the Congo, and Senegal were the top five Sub Saharan African nations targeted for mergers and acquisitions in 2020. Some of the industries in Sub Sahara Africa that attracted the highest number mergers and acquisitions were healthcare, financial industry, the technology sector, energy and power sector, and materials industry.
Notable mergers and acquisition deals involving Kenyan companies that took place in 2020 include I&M Holdings’ acquisition of 90% ownership in Uganda based Orient Bank, Equity Group’s acquisition of 66.53% stake in Banque Commerciale Du Congo, and Jubilee Holdings’ partnership with Allianz Se.
The amount of investment banking fees earned in Sub-Saharan Africa in 2020 dipped to an estimated $523.7 million from $616 million earned in 2019. South Africa generated the highest investment banking fees in the region in 2020, amounting to $279.9 million. Mozambique came in second with $73.3 million generated from investment banking fees as per the SSA Investment Banking Review report.
In the debt capital markets, the African Development Bank raised $3 billion by issuing a social bond to alleviate the impact of covid19 on African economies, Ghana raised $3 billion by issuing a Eurobond, and Prosus raised US$2.2 billion. The total proceeds raised in the Sub Saharan African region in 2020 amounted to $19.0 billion.