SA's M&A landscape sees renewal as capital markets rebound

SOUTH Africa's mergers and acquisitions landscape (M&A) is being shaped up by cross-border consolidation, portfolio optimisation by multinational corporations, and renewed private equity interest at a time there is fresh impetus across the African continent's capital markets.

- TAWANDA KAROMBO

In an interview with Business Report this week, Yvonne Ike, head of Sub Saharan Africa at Bank of America Merrill Lynch, said capital markets in Africa "entered 2025 with cautious optimism".

Ike said this was due to the confluence of stabilizing macroeconomic fundamentals, greater foreign exchange flexibility in some economies, and improving debt sustainability.

All this was "helping rebuild investor confidence" across regional markets, Ike said.

"At the same time, governments are re-engaging with international capital markets after a prolonged hiatus, and local listings are regaining traction, particularly in sectors tied to infrastructure, telecoms, and energy transition," said Ike.

"There's also rising interest in privatizations and public-private partnerships, which is helping to deepen capital markets across key economies."

In South Africa, there has been stronger interest in capital markets as M&A activity remains prevalent.