Activity
M&A activity in Africa experienced a sharp decline in 2023
when compared to 2022. Key factors which contributed to the
slowdown in M&A activity in 2023 included rising inflation, the
increased cost of capital and the major geopolitical events and
general uncertainty affecting global markets. These factors have
impacted M&A globally, with Africa being no exception.
According to AVCA numbers, private capital transactions in
Africa decreased by 54.5% from a deal volume perspective when
compared to 2022 and by 56.2% from a deal value perspective. The
downturn in investment activity in Africa was far reaching as most
asset classes were affected by it. One of the key areas of decline
was the significant decrease in venture capital activity, which had
previously boosted the deal values and volumes across Africa in
2022. In 2023, venture capital deals in Africa decreased by 51.27%
in deal volume and by 44.23% in deal value when compared to
2022.
