Nigeria Leaves Kenya in the Dust With $8.19bn Private Equity Deals
- Trump policies present uncertainty for 2025, says report
Nigeria emerged as the clear favourite for equity investors last year as it attracted the most in volume and value, leaving its biggest rival Kenya to the dust, a new report by DealMakers Africa shows.
The East African nation secured the highest number of deals in 2023, while Nigeria got the largest value.
The report by the South African-based firm, which tracks mergers and acquisitions (M&A) and corporate finance activity across the continent, put the number of deals in Nigeria at 76, valued at $8.19 billion compared to Kenya’s 73, worth $373.7 million.
In 2023, Africa’s most populous nation attracted 84 deals worth $932.9 million, while Kenya had 96 deals valued at $600.3 million.
The number of deals on the continent fell by 11 percent to 424 deals last year, according to the report.
A breakdown shows West Africa witnessed the greatest M&A activity by value and flow ($7.97 billion from 135 deals); East Africa recorded 126 deals; North Africa followed with 92 deals valued at $1.6 billion.
The most notable deal, by value, was the disinvestment by Société Générale of stakes in its Moroccan businesses to the Saham Group for an aggregate $1.2 billion.
“Sectors pivotal in shaping the PE landscape across the continent during 2024 included fintech and e-commerce, financial services, healthcare, manufacturing and renewable energy – a focus where Africa presents significant growth opportunities,” the report said.
It said energy deals have become vital for Africa’s economic development, electrification, industrialisation, and climate action.
“Not only do they bring investment, job creation, regional integration, good governance and environmental sustainability, they are crucial for long-term success.”
For Nigeria, deals around energy and cement accounted for the most value, including the acquisition of Shell Petroleum Development Company of Nigeria by Renaissance Africa Energy Company and Equinor Nigeria Energy Company by Chappal Energies.
DealMaker Africa projects that deal-making activities in 2025 will be driven by strategic investments and development priorities.
“M&A activities remain vital for shaping the African trading market landscape, offering a pathway for companies to enhance their competitiveness and expand their reach internationally,” the firm said.
It added that the Trump administration’s policies will present an uncertain and complex landscape for M&A and investment in Africa in the year ahead, and “while protectionist trade measures and foreign aid reductions may pose challenges, strategic economic engagements and shifts in global partnerships could create new opportunities”.
