Africa's capital markets are entering a new phase with a significant increase in IPO and M&A activity. This surge is largely attributed to greater economic stability, including more stable exchange rates in countries like Nigeria, Angola, Ghana, and Zambia, making African assets more attractive. Funso Akere, Head of M&A Advisory for Standard Bank's Africa Regions, noted that this stability is finally creating an exit window for private equity firms whose exits were previously delayed by currency devaluation.
The anticipated $5 billion listing of Aliko Dangote’s refinery on the Nigerian Exchange is a major catalyst, expected to be Africa's largest-ever listing. Yemisi Deji-Bejide, head of M&A for Africa at Standard Chartered, highlighted that this deal demonstrates the continent's growing capacity to build and finance large industrial businesses. The IPO is attracting interest from sovereign wealth funds and institutional investors across Africa and the Caribbean, and its success could broaden the capital pool for other African companies, according to Miguel Azevedo, head of investment banking for the Middle East and Africa at Citigroup.
Beyond Dangote, other significant IPOs are emerging, particularly in the tech and telecom sectors. Airtel Money, the mobile money arm of Airtel Africa, plans a London Stock Exchange listing in the second half of 2026, estimated to be worth over $10 billion. Other major fintech companies like OPay and PalmPay are also pursuing international listings, targeting valuations of $4 billion and over $1 billion respectively. However, MNT-Halan, an Egyptian fintech unicorn, is uniquely pursuing a local IPO on the Egyptian Exchange with an expected valuation between $900 million and $1 billion.
The M&A market is also buoyant, with notable deals such as Diageo's $2.3 billion sale of its East African beer business and Nedbank's $855 million offer for a controlling stake in Kenya’s NCBA Group. While the current activity is concentrated in fewer, larger transactions, there is optimism that these successful deals will establish valuation benchmarks, encourage more investment, and ultimately lead to deeper, more liquid capital markets across the continent. African stock markets have shown strong performance, with Ghana, Nigeria, and Tunisia ranking among the best-performing globally.
