South Africa, Kenya and Egypt accounted for about 70 percent of the total value of mergers and acquisitions (M&A) recorded across Africa in 2025, according to a report published on Thursday by HSF Kramer.
In the report, titled “Africa – Holding firm: M&A activity in the continent is expected to stay strong in 2026 despite ongoing uncertainty,” the firm said South Africa remained the dominant market by value, capturing 35 percent of total deal value during the year. Kenya followed with 20 percent, while Egypt accounted for a further 15 percent.
By transaction volume, Egypt emerged as the most targeted country on the continent, with more than 200 deals recorded in 2025. South Africa followed closely with just under 200 transactions, while Morocco posted one of the strongest growth rates, registering nearly 100 deals, around 65 percent more than in 2024.
Despite global uncertainty, overall M&A activity across Africa remained resilient. The value of inbound deals defined as acquisitions of African companies by foreign investors rose by more than 40 percent compared with the previous year. Outbound deal value, involving African firms acquiring assets abroad, surged nearly 85 percent year-on-year, even as the number of outbound transactions edged lower.
In contrast, the total value of intra-African M&A transactions declined in 2025, largely due to the absence of mega-deals. However, the volume of deals between African companies remained broadly stable, indicating continued strategic consolidation within regional markets. The report cited geopolitical tensions, elevated global interest rates and ongoing trade frictions as key factors weighing on large-scale transactions.
Consumer goods lead activity
The consumer goods sector once again topped both deal value and transaction volume, underlining its position as Africa’s most active M&A segment. Activity was boosted by major transactions such as the $2.6 billion acquisition of Coca-Cola Beverages Africa by Coca-Cola Hellenic Bottling Company. In total, the sector recorded more than 180 transactions in 2025, continuing a trend seen over recent years.
Energy ranked second by value, supported by a number of large cross-border deals. These included Swiss trader Vitol’s $1.65 billion acquisition of a 30 percent stake in Italian major Eni’s Baleine offshore project in Côte d’Ivoire. Other notable transactions included Tullow Oil’s sale of its Kenyan assets and Shell Nigeria Exploration and Production Company’s purchase of TotalEnergies EP Nigeria’s stake in the Bonga oil field.
Financial services also saw a marked increase in deal-making activity, with transaction numbers rising sharply from 2024 levels. According to the report, five inbound M&A deals each valued at more than $1 billion were completed across the continent during the year, reflecting sustained interest in Africa’s banking, payments and insurance sectors.
Foreign investors remain active
Among foreign acquirers, Switzerland ranked as the largest investor by deal value in 2025, investing $3.4 billion across six transactions. Japan followed with $3 billion across eight deals, while the United Kingdom placed third with $2.7 billion spread over 35 transactions. The United States was the most active by volume, completing 50 deals during the year.
Looking ahead, HSF Kramer said M&A activity in Africa is expected to remain robust in 2026, supported by investor confidence and the continent’s role as a relatively neutral destination for critical minerals and energy exports to major global markets. The firm pointed to the $553 million loan provided by the U.S. International Development Finance Corporation for the development of the Lobito Corridor as an example of sustained international engagement, despite ongoing global economic and political uncertainty.
Background to Africa’s M&A
Africa’s mergers and acquisitions (M&A) market has remained relatively resilient over the past five years, despite global shocks ranging from the COVID-19 pandemic to geopolitical tensions, tighter global financial conditions and volatile commodity prices. While overall deal volumes have fluctuated, Africa has continued to attract strategic and long-term investors drawn by its large consumer base, natural resources and infrastructure needs.
South Africa has traditionally dominated M&A activity on the continent, supported by its deep capital markets, diversified economy and well-developed legal and regulatory frameworks. Egypt has emerged as a major hub for deal volume, driven by privatisation efforts, currency reforms and strong interest in sectors such as energy, logistics and financial services. Kenya has positioned itself as East Africa’s deal centre, benefiting from growth in consumer goods, technology, agribusiness and renewable energy.
In recent years, foreign investors from Europe, Asia and North America have increased their presence, while African companies have become more active in cross-border acquisitions as they seek scale and regional expansion. Consumer goods and energy have consistently ranked among the most active sectors, reflecting Africa’s growing population and strategic role in global energy and critical mineral supply chains.
Despite risks linked to high interest rates and global uncertainty, analysts expect Africa’s M&A market to remain underpinned by long-term growth fundamentals, infrastructure development and increasing regional integration.
