In April 2023, the London Stock Exchange Group (LSEG) released the Q1 2023 investment banking analysis for the Sub-Saharan African. According to the report, the value of announced M&A transactions the first quarter of 2023 involving Sub-Saharan Africa witnessed a significant decline, reaching a total of US$2.9 billion. This marks an 80% decrease compared to the first quarter of 2022 and represents the lowest first quarter total since 2003. The report also notes that the number of deals in the region also experienced a decline of 30% compared to the previous year, reaching a nine-year low.

Specifically, deals involving Sub-Saharan African targets amounted to US$2.3 billion in the first quarter of 2023, showing an 81% drop from 2022 levels and reaching a three-year low. The number of deals also declined by 28% compared to the previous year. Further, as per the Report, inbound deals, where non-Sub-Saharan African entities acquired companies within the region, experienced a significant decline of 85% to US$1.5 billion. Domestic deals within Sub-Saharan Africa also decreased by 64% to reach US$838.6 million. Moreover, Sub-Saharan African outbound M&A activity reached US$384.1 million, marking a 53% decline from the value recorded in 2022 and reaching a nine-year low.

In terms of sectors, the Report notes that materials deal making accounted for 30% of the first quarter of 2023 Sub-Saharan African involvement in M&A activity, totaling US$699.4 million. This represents a 34% increase compared to the previous year. Energy & Power and Consumer Products & Services were the next prominent sectors in terms of M&A activity during the first quarter of 2023, the report notes. Regarding target nations for M&A deals, it is noted that Nigeria emerged as the most targeted nation, followed by Zimbabwe and South Africa. In terms of financial advisory, Java Capital (Proprietary) Ltd topped the league table for any Sub-Saharan African involvement in announced M&A during the first quarter of 2023.