• Standard Bank narrowly led Africa’s investment banking fees in 2025, but Afreximbank’s surge signals a shifting balance of power.
• Afreximbank’s rapid rise reflects a strategic pivot into capital markets and advisory, boosted by geopolitics and sovereign issuance.
• Global banks returned via mega-deals, while weak M&A and strong capital markets reshaped Africa’s investment banking landscape.

Africa’s investment banking industry reached a historic inflexion point in 2025, as Standard Bank Group narrowly retained its leadership position against a spectacular challenge from pan-African lender Afreximbank. The near tie between the two African institutions signals not only intensifying competition for fees, but also a possible reconfiguration of power in a sector long dominated by South African and Western banks.

According to the Sub-Saharan Africa Investment Banking Review published by LSEG Data & Analytics, Standard Bank finished 2025 as the region’s top fee earner, with $39.9 million in fees, representing a 7.9% market share. Afreximbank came in second with $39.4 million and a 7.8% share, leaving Goldman Sachs in third place at $38.9 million. The margin separating the top two—just $500,000—marks the tightest race for African investment banking leadership in years and underscores how competitive the market has become.

Afreximbank’s Breakthrough: A Strategic Pivot Pays Off

Afreximbank’s ascent is undeniably the standout development of the year. The Cairo-based institution recorded a 543% surge in fee revenues compared to 2024, propelling it from a marginal presence in league tables to a serious contender for market leadership. While a low base effect amplifies this growth rate, it nonetheless reflects a genuine strategic shift.

Historically focused on trade finance and syndicated lending, Afreximbank has, in recent years, aggressively expanded into higher-margin activities, including the debt and equity capital markets, structured finance, and selective advisory mandates. Founded in 1993 as a multilateral institution owned by African governments, the African Development Bank, and private African investors, the bank has leveraged its pan-African mandate and perceived political neutrality to secure mandates that might previously have gone to South African or Western banks.

Geopolitical dynamics have reinforced this momentum. As several African governments seek to diversify financial partnerships away from traditional Western institutions, Afreximbank has benefited from its positioning as an “African solutions” provider, particularly in West Africa’s Sahel region and parts of East Africa. The bank’s rise coincided with heavy sovereign issuance in 2025, notably Nigeria’s $3.5 billion and the Ivory Coast’s $11.7 billion bond programs. While LSEG data does not disclose individual mandates, Afreximbank is widely understood to have played a significant role in several of these transactions.

That said, questions remain about the sustainability of this growth. Building credible investment banking franchises requires sustained investment in senior talent, risk management, and execution capabilities. As a multilateral institution, Afreximbank also faces potential governance and conflict-of-interest challenges when balancing developmental objectives with fee-driven commercial mandates. Whether its 2025 performance represents a structural shift or an exceptional year will become clearer over the next cycle.

Standard Bank: Leader Under Pressure

Standard Bank’s narrow victory masks growing strategic challenges. The Johannesburg-based group recorded revenue growth of just 1% in 2025, significantly underperforming the overall market, which expanded by 13%. As a result, Standard Bank lost nearly one percentage point of market share despite finishing first overall.

More tellingly, the bank no longer leads any individual product category. It is absent from the top ten in M&A advisory, where Goldman Sachs dominates with a 30.5% market share. In the equity capital markets, Standard Bank ranked fourth with a 9.6% share and saw a 16% decline in related revenues. Only in debt capital markets did it show clear momentum, ranking seventh with a modest 5.4% share but posting strong growth of 141%.

These pressures are partly structural. South Africa accounted for 51.5% of Sub-Saharan Africa’s total investment banking fees in 2025, and Standard Bank remains the dominant domestic player. However, South Africa’s sluggish economic growth—around 1–2% annually—limits opportunities for large, transformative deals. Faster-growing markets such as Nigeria, the Ivory Coast, and parts of East Africa have become the key battlegrounds, where Standard Bank faces increasingly fierce competition from Afreximbank, local champions, and returning international banks.

The Return of the Global Banks

Goldman Sachs’ third-place finish highlights the selective return of major international investment banks to Africa. The US powerhouse posted a 343% increase in fee revenues by focusing on large, high-profile transactions rather than broad market coverage. It dominated M&A advisory and led equity capital markets, securing marquee mandates such as the $2.5 billion Valterra Platinum equity offering, the region’s largest since 2017.

JP Morgan also recorded strong growth, rising to fifth place overall with $30.1 million in fees, while Bank of America Securities and Barclays strengthened their positions. However, the renewed presence of global banks remains inherently cyclical. Their engagement is typically concentrated around mega-deals and can quickly retreat in response to global risk aversion, currency volatility, or political shocks—leaving space for regional and pan-African institutions to consolidate their franchises.

A Market Driven by Capital Markets, Not M&A

Total Sub-Saharan African investment banking fees reached $503.9 million in 2025, up 13.1% year over year. Growth was overwhelmingly driven by capital markets activity. Debt underwriting fees surged 73% to $68.2 million, while equity underwriting fees rose 54% to $66.6 million, their highest level since 2020. Syndicated lending fees increased 33.5% to $246.8 million.

In contrast, completed M&A advisory fees fell 31.3% to $122.2 million, the lowest level in four years. Domestic M&A activity collapsed by 69.3%, offset only partially by a 54.2% increase in inbound cross-border transactions. This divergence reflects growing investor confidence in African capital markets alongside continued caution toward large-scale acquisitions amid political and macroeconomic uncertainty.

A Redefined Competitive Landscape

The battle between Standard Bank and Afreximbank goes beyond league table symbolism. It reflects a broader transformation of African finance, in which pan-African institutions are increasingly able to compete with long-established domestic champions and global banks in complex transactions.

For African governments and corporates, intensifying competition may improve service quality and negotiating leverage, although investment banking remains a relationship-driven business with high switching costs. Afreximbank’s rise offers clients an alternative when geopolitical considerations complicate relationships with Western banks. At the same time, Standard Bank must decide whether to defend its domestic stronghold or accelerate expansion in faster-growing markets.

As 2026 unfolds, robust capital markets activity—bond issuance reached $32.7 billion in 2025, while equity issuance hit $5.5 billion—suggests sustained demand for advisory and underwriting services. The central question is whether Afreximbank can consolidate its breakthrough, whether Standard Bank can reignite growth and reclaim product leadership, or whether international banks will dominate the most lucrative mandates. The outcome will shape the next phase of African corporate finance and determine who ultimately controls the continent’s most strategic financial relationships.

Idriss Linge