In line with Herbert Smith Freehills Kramer’s optimistic expectations from last year of an upward trend of M&A transactions in 2025 in the Africa region, overall M&A deal activity in Africa remained strong in 2025. The value of inbound M&A deals into Africa was up over 40% from 2024 and the number of deals was up as well. It was a similar story for outbound M&A deals from Africa to the rest of the world, with deal value surging nearly 85% from 2024 to 2025 despite a slight decline in the number of deals.
M&A deal activity from a regional (intra-Africa) perspective did however decline in value with fewer mega deals recorded as compared to 2024, although deal volume remains relatively flat with 2024. Contributing factors to this decline include worldwide geopolitical uncertainty and its economic effects, rising interest rates, making acquisition financing more expensive, and ongoing global trade tensions.
South Africa continues to be the engine room for M&A in Africa, leading the continent in deal value with 35% of total recorded deal value, with Kenya and Egypt accounting for approximately another 20% and 15% of deal value respectively.
Egypt was also the most targeted nation by number of deals with over 200 deals recorded compared to just under 200 for South Africa in 2025. Morocco also experienced notable growth, with nearly 100 deals recorded — around 65% more than in 2024.
In terms of foreign capital investment, Switzerland is the largest inbound acquiror by value in 2025, investing US$3.4 billion across 6 deals, followed by Japan with US$3.0 billion across 8 deals. The UK ranked third with US$2.7 billion across 35 deals. The US was the most active in terms of number of deals, involved in 50 transactions in 2025, followed by France, which contributed over US$300.61 million through 25 deals.
From a sector perspective, the consumer sector has emerged as the most targeted sector, leading both in deal volume and value, largely driven by major transactions, notably Coca-Cola HBC AG’s US$2.6 billion acquisition of Coca-Cola Beverages. This sector recorded over 180 deals, continuing its dominance over the past several years. Energy deals maintained strong activity, ranking second in terms of deal value. Key transactions in the energy sector include Vitol’s acquisition of a 30% interest in Eni’s Baleine project in Côte d’Ivoire in September for US$1.65 billion, Tullow’s divestment of its Kenyan assets to UAE’s Gulf Energy, and Shell Nigeria Exploration and Production Company’s (SNEPCo) acquisition of TotalEnergies EP Nigeria’s (TEPNG) 12.5% non-operated stake in Nigeria’s deepwater Bonga field for US$510 million. The financial services sector also saw a significant increase in the number of deals in 2025 compared to 2024.
Notable 2025 deals
A flurry of deals announced in December saw the number of deals over US$1 billion rise to five in 2025 – equalling 2024:
- Coca-Cola HBC AG’s acquisition of Coca-Cola Beverages South Africa for US$2.6 billion.
- Asahi’s acquisition of Diageo’s Kenya breweries for US$2.3 billion.
- Vitol’s acquisition of a 30% interest in Eni’s Baleine project in Côte d’Ivoire in September for US$1.65 billion.
- Vodafone’s acquisition, via its Vodacom subsidiary, of a 15% stake in Safaricom from the Kenyan government for US$1.6 billion.
- UAE’s Black Caspian’s bid for Egypt’s Alexandria Container and Cargo Handling Company for approximately US$1 billion.
- One of the most significant outbound deals in 2025 was Gold Fields Limited’s acquisition of ASX-listed Gold Road Resources for $3.7 billion.
Private capital in 2025
While strategic acquirers continue to be more active in M&A in Africa than private capital investors, according to the African Private Capital Association (AVCA) analysis, investment remains stable and investment in North Africa has increased, as private equity investors seek opportunities in the food and agribusiness sectors and venture capital continues to spot opportunities in tech companies.
Some of the notable deals in private capital in 2025 include the acquisition of 11.07% of an equity stake by Africa Lighthouse Capital, from a minority shareholder Bayport Management Limited (Mauritius), in Money Quest Investments (Proprietary) Limited t/a Bayport Financial Services (Bayport Financial Services), Botswana’s leading regulated micro lending financial service provider.
US, European and African private capital’s increasing interest in mining deals (particularly critical minerals) may mean that we see these figures going up in the future.
Regulatory overview
Governments across the African continent regulate foreign direct investment (FDI) into their countries much more carefully today than in the past. In the current investment climate, foreign investment in African countries is often linked to some form of social responsibility to local communities, local industry or the local economy.
There is no universal definition or list of public interest considerations, and public policy goals significantly differ from one jurisdiction to another. Some countries in Africa welcome foreign investors through various incentives, but increasingly these incentives come with public interest conditions relating to local content or local manufacturing.
Outlook for 2026
Ongoing worldwide geopolitical uncertainty and its economic effects will continue to have an impact on M&A transactions in Africa. The relatively stable inbound M&A activity, in terms of value and number of deals, evidence investors’ trust in the Africa market and we expect that the M&A activity will remain strong in 2026 despite the global uncertainty. Africa should continue to be seen as a relatively neutral area for critical minerals and energy exports to the US, Europe and Asia, a position reinforced by the recent joint US-EU Statement of Intent on the Lobito Corridor and the US International Development Finance Corporation’s (DFC) US$553 million loan to the consortium developing the corridor.
Full African M&A report findings here: https://www.hsfkramer.com/insights/reports/2026/global-ma-report-2026/regional-perspectives/africa