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Africa recorded strong merger and acquisition (M&A) activity in 2025 with the momentum expected to continue this year despite geopolitical uncertainty.
According to a report by global law firm Herbert Smith Freehills Kramer, the value of inbound M&A deals in Africa was up over 40% from 2024 and the number of deals was up as well. It was a similar story for outbound M&A deals from Africa to the rest of the world, with deal value surging nearly 85% from 2024 to 2025 despite a slight decline in the number of deals.
South Africa continues to be the engine room for M&A in Africa, leading the continent with 35% of the total recorded deal value, with Kenya and Egypt accounting for about 20% and 15% of deal value respectively.
Egypt was also the most targeted nation by number of deals with over 200 deals recorded compared to just under 200 for South Africa in 2025. Morocco also experienced notable growth, with nearly 100 deals recorded — about 65% more than in 2024.
Some of the notable deals concluded included Coca-Cola HBC AG’s acquisition of Coca-Cola Beverages South Africa for $2.6bn and Vodafone’s acquisition, via its Vodacom subsidiary, of a 15% stake in Safaricom from the Kenyan government for $1.6bn.
Ongoing worldwide geopolitical uncertainty and its economic effects will continue to have an impact on M&A transactions in Africa.
— Herbert Smith Freehills Kramer report,
From a sector perspective, the consumer sector has emerged as the most targeted sector, leading both in deal volume and value, largely driven by major transactions, notably Coca-Cola HBC AG’s acquisition of Coca-Cola Beverages. This sector recorded over 180 deals, continuing its dominance over the past several years. Energy deals maintained strong activity, ranking second in terms of deal value.
“Ongoing worldwide geopolitical uncertainty and its economic effects will continue to have an impact on M&A transactions in Africa. The relatively stable inbound M&A activity, in terms of value and number of deals, is evidence of investors’ trust in the Africa market and we expect that the M&A activity will remain strong in 2026 despite the global uncertainty,” the report stated.
It said Africa should continue to be seen as a relatively neutral area for critical minerals and energy exports to the US, Europe and Asia.
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