Africa’s financial story this week is one of contrasts. Business activity across several major economies strengthened in July, while Angola’s inflation fell into single digit for the first time in nearly 11 years. Nigeria is also seeing fresh wealth creation, with 900 new dollar millionaires added over the past year.
But investors remain cautious: South Africa’s M&A market slowed as the Iran war and weak growth weighed on dealmaking, while Nigeria’s five-week run as the world’s best-performing stock market has come to an end. At the same time, the Africa Finance Corporation’s $430 million digital bond demonstrates that African institutions are exploring new avenues to access global capital markets.
Here are the key developments shaping Africa’s financial landscape.
South Africa’s M&A market stalls as Iran war fuels investor caution
South Africa’s mergers and acquisitions market lost momentum in the first half of the year as the Iran war, weak economic growth and heightened global uncertainty pushed companies and investors into a wait-and-see mode.
According to a new report by DealMakers Africa, deal flow fell 10 percent year-on-year to 155 transactions, valued at R311 billion (about $19.3 billion), from 173 deals in the first six months of last year. However, activity remained above H1 2024, when 144 transactions were recorded.
Why it matters: The slowdown is a warning sign for Africa’s largest M&A market. While deal activity has not collapsed, geopolitical uncertainty and weak domestic growth are making…
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Read Full Article by Bunmi Bailey at businessday.ng
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