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Africa’s mergers & acquisitions (M&A) activity remained strong in 2025, with South Africa leading the continent in total investment in deals, according to a new report by global law firm Herbert Smith Freehills Kramer.
The firm’s “Global M&A Africa Regional Perspective” report shows that companies from outside Africa increased their acquisitions of African businesses and assets by more than 40% compared with 2024.
African companies also expanded acquisitions of businesses outside the continent, spending nearly 85% more on these deals than in 2024, even though the total number of transactions was slightly lower.
By contrast, M&A activity between African countries involved fewer large transactions, though the overall number of deals remained about the same as in 2024.
The report attributes the smaller size of these intra-African deals to global factors, including geopolitical uncertainty, rising interest rates that made financing acquisitions more expensive, and ongoing trade tensions.
By number of deals and total investment, South Africa continued to lead the continent in 2025, accounting for about 35% of total deal investment. Kenya and Egypt followed with about 20% and 15%, respectively. By number of transactions, Egypt recorded more than 200 deals, slightly ahead of South Africa, while Morocco recorded nearly 100 deals, a 65% increase from the previous year.
Foreign investors remained active in Africa in 2025. Switzerland was the largest investor by total money spent, committing $3.4bn across six deals. Japan and the UK followed, investing $3bn and $2.7bn, respectively.
By number of deals and total investment, South Africa continued to lead the continent in 2025, accounting for about 35% of total deal investment.
In terms of activity by number of transactions, the US led with 50 deals, followed by France with 25 deals totalling more than $300m.
The consumer sector led the amount spent and the number of deals, with more than 180 transactions. Notable deals included Coca-Cola Hellenic Bottling Company, a leading beverage bottler and distributor of The Coca-Cola Company’s products across Europe, parts of Africa, and Eurasia, acquiring Coca-Cola Beverages South Africa for $2.6bn, consolidating its South African bottling operations.
The energy sector ranked second, supported by Vitol, the independent energy trader based in Switzerland, acquiring a 30% stake in Eni’s Baleine oil and gas project in Ivory Coast for $1.65bn. Eni is a European energy company, operating globally across oil, gas, renewables, and chemicals.
The financial services sector also recorded more deals than in 2024, including minority investments in micro-lending and fintech companies.
Five transactions exceeded $1bn in 2025, matching the number recorded in 2024. Among the largest deals involving African companies was Gold Fields’ $3.7bn acquisition of Gold Road Resources, an Australian gold producer formerly known as Eleckra Mines, to expand its gold mining operations internationally.
Private capital investment remained stable. Corporate buyers continued to dominate, while private equity interest grew in North Africa, particularly in food, agribusiness and technology, alongside increasing investor focus on mining, especially critical minerals.
The report says that steady foreign investment and strong M&A activity in 2025 indicate that dealmaking in Africa is likely to remain active in 2026, despite ongoing global economic and geopolitical uncertainty.
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