Yvonne Ike of Bank of America stated that Africa's current deal cycle is primarily shaped by financing, as evidenced by a substantial increase in M&A transactions. During the first half of 2026, the value of announced M&A deals in Sub-Saharan Africa reached $50 billion, quadrupling the level seen in the previous year. Equity capital markets also experienced their strongest first half since 2018, with $1.9 billion in issuance, while debt capital markets hit a record $29.6 billion. Investment banking fees totaled $289 million, marking one of the best first-half performances in over two decades.
West Africa, excluding South Africa, accounted for 34% of reported deal activity by transaction volume, making it the busiest region. Nigeria led with 22 announced transactions, followed by Kenya with 13, highlighting the growing importance of markets with significant scale, liquidity, and established corporate ecosystems. Key sectors attracting investor interest include energy, financial services, telecommunications, and fintech. Nigeria's reform program and Kenya's role as East Africa's gateway for regional expansion are contributing to this positive trend.
Ike emphasizes the importance of domestic capital mobilization, noting that Africa possesses over $4 trillion in long-term domestic capital, primarily held by pension funds, insurers, and other institutional investors. The improved economic backdrop, including more stable exchange rates and recovering economic activity in countries like Nigeria, Angola, Ghana, and Zambia, is creating a more favorable environment for deals. This stability provides greater confidence for both buyers and sellers regarding valuations and future exits, which is crucial for attracting and retaining investment. BofA expects strong deal-making activity to continue, particularly in South Africa, despite global volatility, according to the head of its local operation. This sentiment aligns with broader optimism regarding Africa's deal-making landscape, driven by a new phase of IPO and M&A activity.
