Transactions
The value of everything
13 Feb 2025
Insight
Africa
M&A activity in Africa continued on a downward trend in 2024, with a further decrease to the depressed level of activity during 2023. Factors which contributed to the downturn included the cost of capital remaining high, major geopolitical events persisting and the general uncertainty affecting global markets, and that uncertainty was amplified by the 74 national elections held globally during 2024.
2021 and 2022 were standout years for M&A in Africa and 2023 was a year which marked a sharp decline in activity as levels of activity fell to pre-Covid levels. 2024 continued on a similar trajectory to 2023 as deal volumes continued to decrease. However, the green shoots from 2024 were that deal value increased significantly when compared to 2023. In 2024, M&A deal volume in Africa decreased by nearly 10% but deal value increased by 85%. The dramatic increase in deal value was in part due to significant transactions which occurred in the mining industry, particularly in relation to gold and critical minerals.
South African targets accounted for over 60% of deals by value and over 30% of deals by volume in Africa during 2024. Nigeria was the second most active by value, with around 15%, and 8% of deals by volume. Egypt was third by deal value, accounting for around 8%, and 25% of deals by volume.
From a foreign capital investment perspective, France was the largest inbound acquiror by value in 2024, with $2.8 billion invested across over 20 deals, followed by the US which invested $2.4 billion across more than 50 deals and China which invested over $2 billion in over 10 deals.
From a sector perspective, consumer and financial services continue to take the top two places as the most active sectors by deal volume in Africa. Due to the two mega spinoffs of Anglo American, the materials sector captured over 50% of deal value in 2024 and was also the third most active sector by volume in 2024 (up from fourth in 2023).
From a sector perspective, consumer and financial services continue to take the top two places as the most active sectors by deal volume in Africa."
Notable 2024 deals
During 2023, there were only two transactions in Africa that exceeded $1 billion in value. This increased in 2024, with five recorded transactions exceeding $1 billion. Some of the significant transactions on the continent from a deal value perspective were:
- Anglo American’s proposed spinoff of its South African platinum business, Anglo American Platinum (Amplats), for a reported $7.4 billion;
- Anglo American’s proposed spinoff of iron ore business, Kumba, valued at $5.4 billion;
- Canal + France SA's, a unit of Vivendi SE, proposed take private of MultiChoice Group Ltd for a reported $1.9 billion, or $2.6 billion including net debt;
- AngloGold Ashanti's acquisition of Centamin in a reported $2.5 billion stock and cash deal; and
- Gold Fields Limited's acquisition of Osisko Mining for $1.39 billion.
Venture capital in 2024
Venture capital (VC) continued to be suppressed on the continent during 2024. Many VC firms continued to focus on their existing portfolio and on ensuring that they had sufficient dry powder to support their existing investments in follow on and bridge rounds, and remained cautious about deploying into new investments, as was the case in 2023. According to AVCA, the 2024 VC performance was on track to be the lowest since 2020 as deal volume decreased by 36% and deal value decreased by 35% in 2024 when compared to 2023.
A notable African VC transaction in 2024 was Tyme Group's Series D capital raise which secured $250 million in funding – resulting in Tyme reaching unicorn status, with a valuation of $1.5 billion.
Outlook for 2025
Ongoing worldwide geopolitical uncertainty and its economic effects will continue to have an impact on M&A transactions in Africa. The increased ticket sizes and improvement in deal value in 2024 was promising and we expect an upward trend of M&A transactions in 2025, but the impact of global uncertainty remains to be seen.
Key contacts
Chapters
- Global M&A Outlook 2025 – Regional perspectives
- Africa – Still uncertain but hopeful
- Asia – Bright spots
- Australia – High on value
- CEE and Central Asia – Mixed results
- Europe – Slow but steady
- France – Resilience amid uncertainty
- Germany – Dreams of spring
- India – From strength to strength
- Italy – Volume down, value up
- Latin America – The only way is up
- Luxembourg – Set for a rebound?
- Middle East – Progress amid tensions
- South Korea – Mixed signals
- Spain – Gaining momentum
- Switzerland – Cautiously optimistic
- UK – At a turning point?
- US – What Trump 2.0 means for M&A
Related insights
Legal Notice
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2025
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