Uncertainty imperils SA deals, says investment banker

Fractures within the South African government, along with global macroeconomic uncertainty, are weighing on dealmaking activity in the continent's largest economy, according to one of the country's top investment bankers.

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Uncertainty about a key vote on South Africa's budget and what it portends for South Africa's coalition government have put a damper on business confidence, according to Yasmin Masithela, CEO of Absa Group's corporate and investment banking unit. That's weighed on M&A activity despite the fact that corporate cash piles remain near record levels, she said.

"There are hardly any infrastructure deals in the market," Masithela said in an interview in Johannesburg. "We are not seeing it in our pipelines. We are actually not seeing big M&A deals, big infrastructure deals coming out in our pipelines in South Africa, in particular."