DealMakers AFRICA Q3 2022

FROM THE   EDITOR'S DESK

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In early November, the African Development Bank (AfDB) lobbied global investors at the African Investment Forum in Abidjan to seek investment opportunities in Africa, promising to ‘de-risk’ investments. It said that Africa’s potential in the world economy was growing, with young people representing the majority of its population, and that a quarter of the world’s population was likely to live in Africa between now and 2050. In addition, nearly two-thirds (65%) of unused arable land, rich in minerals, was found in Africa.

Analysis by DealMakers AFRICA shows that the African continent continues to attract significant investor interest. The total value of local M&A deals captured for Q1-Q3 2022 (excluding South Africa) was US$15,01 billion, up slightly on that recorded over the same period in 2021.

 

West Africa was the most active region with 166 deals valued at US$2,83 billion, followed by Southern Africa ($1,783 billion) and East Africa ($1,16 billion). By country, Nigeria led the pack with 113 deals ($2,19 billion), followed by Kenya (87 deals valued at $886,8 million) and Mauritius with 17 deals valued at $860,6 million (page 3).

 

2022 has been an interesting year for startups in Africa. Since the beginning of the year, a huge flow of venture capital investment has found its way into the African tech ecosystem, with many startups on the continent raising unprecedented amounts, reflecting resilience despite major geopolitical and financial headwinds that are precipitating falling startup valuations and sell-offs across the world (page 5).

 

The value of capital raised by African startups was projected to hit $7 billion by the end of 2022, a 35% year-on-year increase from the $5,2 billion that was raised in 2021. This is according to The Big Deal, an Africa-focused database. Antonia Bothner, Capital Markets lead at Endeavor SA, says that Africa’s digital economy is estimated at US$115 billion and is expected to grow to about $712 billion in 2050.

This month, DealMakers has published a Renewable Energy feature. The articles are well worth the read, especially with events around COP27, giving insightful information on this topical issue. The feature can be downloaded at https://www.dealmakerssouthafrica.com/dm-q3-2022-renewable-energy-feature 

We are happy to announce that the DealMakers AFRICA Annual Gala Awards is back and will once again hold an in-person event in Nairobi, Kenya on 14 March 2023. Please remember to submit nominations for the Deal of the Year 2022 and Private Equity Deal of the Year 2022 for both East and West Africa.

MARYLOU GREIG