Africa’s M&A market remained active in the first half of 2026, although dealmaking slowed compared with the same period last year. Against a backdrop of heightened geopolitical uncertainty and a more cautious global investment environment, investors have become more selective, but the underlying appetite for Africa’s longer-term growth opportunities remains evident.
DealMakers AFRICA recorded 166 M&A deals across the continent, excluding South Africa, during H1 2026, with a combined value of US$5,58 billion. This represents a 10% year-on-year decline in deal value and a c.13% decline in deal volumes.
West Africa remained the standout region, with 55 transactions accounting for one-third of all reported activity. East Africa followed with 39 deals and North Africa with 34. Nigeria led the individual country rankings with 39 transactions, followed by Kenya with 25, Egypt with 18 and Morocco with 15.
While many investors are taking a more cautious approach, Africa’s natural resources continue to draw strategic and opportunistic capital. Upstream energy and mining were notable areas of activity, with transactions in Angola, Ghana and Equatorial Guinea contributing a combined $1,21 billion. This resilience in resource-related dealmaking reflects the continued strategic importance of Africa’s commodities and energy assets, particularly as global investors position themselves for the energy transition and growing demand for critical resources.
Private equity remained an important component of Africa’s deal landscape, accounting for 76 transactions in the first half of the year. However, the longer-term trend points to a more challenging environment: private equity deal numbers have fallen from 136 transactions in 2023. The decline reflects not only greater investor caution but also the increasingly difficult exit environment facing private equity investors on the continent. For managers, deploying capital remains only one part of the equation; creating viable exit routes is becoming equally important.
Africa’s entrepreneurial ecosystem is showing similar resilience. According to Africa: The Big Deal, fintech remained the leading sector for start-up funding, followed by Logistics & Transport. Agri & Food, Waste Management, and Energy & Water completed the top five. Perhaps more significant is the changing funding mix. Equity and debt are now almost evenly balanced, a notable shift from 12–18 months ago when African start-up funding was considerably more equity-driven.
Short-term caution should not obscure the structural drivers that continue to underpin Africa’s investment case. Rapid urbanisation, abundant natural resources, the energy transition and the expansion of the middle class all point to significant long-term opportunities. For investors willing to look beyond the immediate uncertainty, sectors such as ESG, fintech and value-added financial services remain areas with considerable potential.
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