• South Africa led with 35% of total deal value, ahead of Kenya and Egypt

• Inbound deal value rose over 40%, outbound value jumped nearly 85%

• Consumer goods sector topped both value and volume of transactions

South Africa, Egypt and Kenya accounted for about 70% of the total value of mergers and acquisitions (M&A) recorded in Africa in 2025, according to a report published on Thursday, February 12, 2026, by HSF Kramer.

Titled “Africa – Holding firm / M&A activity in the continent is expected to stay strong in 2026 despite ongoing uncertainty,” the report states that South Africa remained the main driver of M&A activity on the continent, capturing 35% of total transaction value during the year. Kenya followed with 20% and Egypt with 15%.

In terms of volume, Egypt was the most targeted country in 2025, with more than 200 transactions recorded, compared with just under 200 in South Africa. Morocco also posted notable growth, with nearly 100 transactions, about 65% more than in 2024.

The report shows that overall M&A activity across the continent remained solid. The value of inbound deals, defined as acquisitions of African companies by foreign investors, increased by more than 40% compared with 2024. Outbound deals, involving African companies acquiring foreign firms, rose by nearly 85% year-on-year in 2025, despite a slight decline in the number of transactions.

Intra-African M&A deals, involving companies based on the continent, saw a drop in total value due to fewer mega-deals, although transaction volume remained relatively stable compared with 2024. Global geopolitical uncertainty, higher interest rates and trade tensions were cited as the main drivers behind the decline in value.

Consumer goods lead activity

Among foreign investors, Switzerland ranked as the largest acquirer by value in 2025, investing $3.4 billion across six transactions, followed by Japan with $3 billion across eight deals. The United Kingdom ranked third with $2.7 billion spread over 35 transactions. The United States was the most active by number of deals, completing 50 transactions, ahead of France, whose companies carried out 25 deals in Africa for a combined value of $300.61 million.

Sector breakdown shows that consumer goods led both in value and volume, driven in part by major deals such as the $2.6 billion acquisition of Coca-Cola Beverages Africa (CCBA), the main African bottler of The Coca-Cola Company (TCCC), by Coca-Cola Hellenic Bottling Company (HBC). The sector recorded more than 180 transactions, confirming its dominance in recent years.

Energy transactions also maintained a high level of activity, ranking second in value. Major deals included Swiss trader Vitol’s acquisition of a 30% stake in Italian oil company Eni’s Baleine project in Côte d’Ivoire for $1.65 billion, Tullow’s sale of its Kenyan assets to UAE-based Gulf Energy, and Shell Nigeria Exploration and Production Company’s purchase of TotalEnergies EP Nigeria’s 12.5% stake in the Bonga field.

Financial services also recorded a significant increase in the number of transactions in 2025 compared with 2024. In total, five inbound M&A deals valued at more than $1 billion were completed across the continent during the year.

For 2026, HSF Kramer expects activity to remain strong despite ongoing geopolitical uncertainty. The outlook is supported by investor confidence in African markets and the perception of Africa as a relatively neutral zone for exports of critical minerals and energy products to the United States, Europe and Asia. The recent $553 million loan granted by the U.S. International Development Finance Corporation (DFC) to the consortium developing the Lobito Corridor is cited as an example.

Walid Kéfi