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Report: Engaging in Business in Africa

KPMG, a global leader in audit, tax, and advisory services, is proud to announce the launch of its 1st edition of the KPMG Doing Deals in Africa Report, a comprehensive analysis of the latest trends and insights on the mergers and acquisitions (M&A) landscape in Sub-Sahara Africa (SSA).

The Doing Deals in Africa Report will serve as a reference resource for business leaders, investors, and professionals seeking valuable insights into the ever-evolving world of M&A. This maiden report promises to deliver an in-depth analysis of the opportunities and challenges that organisations face when navigating the dealmaking landscape in SSA.

Key highlights of the 2023 Doing Deals in Africa Report include:

  • M&A Trends: overview of SSA’s M&A market, including trends in deal activity by region and sector as well as the key drivers of activity such as attractive valuations, distribution channels, etc.
  • Deal dynamics: critical insights into acquisition targets, valuation methods and ranges, approach to financing M&A activity as well as typical deal structures.
  • Challenges: highlights of key risks to investing in SSA ranging from external factors such as macroeconomic conditions, political volatility, to internal factors including divergent valuation/price expectations, poor information, etc. It also highlights approach to due diligence by investors and areas for optimising the due diligence process and post-acquisition integration, including value creation.
  • Deal outlook: investors expectation for deal activity by region and sector over the next two years as well as trends which are expected to drive activity including technology adoption, energy transition, etc.

“We are excited to launch the 1st edition of the Doing Deals in Africa Report, which builds on decades of providing significant M&A advisory to large corporates and private equity clients on the continent,” said Ijeoma Emezie-Ezigbo, Partner & Head, Transaction Services at KPMG West Africa. “This report offers a guide on trends and drivers of deal activity, investors approach to deal making which will help organisations make informed decisions and seize opportunities in the dynamic world of dealmaking.”

According to Ignatius Sehoole, CEO, KPMG Southern Africa and Africa Chairman, the sub-Sahara Africa (SSA) region continues to present a compelling case for investment driven by key advantages of a large population, abundant natural resources, attractive asset valuations etc., despite the macro challenges and recent spate of political volatility seen on the continent. Furthermore, government focus on initiatives and reforms aimed at improving the business and investment landscape also presents further optimism for the region.

The report highlights the diversity of the region which presents varying deal dynamics ranging from the types of opportunities available and drivers of the opportunities to the unique risks and challenges to investing across different markets, as represented in the regional lens adopted for key findings, said Dolapo Adeosun, Partner, Transaction Services at KPMG West Africa. This will allow investors and businesses adapt their strategies according to the unique characteristics of each market in Africa.

“We are thrilled to see this long-awaited publication come to completion,” said Mike Louw, M&A Partner, Deal Advisory at KPMG South Africa. “This comprehensive resource reflects KPMG’s unwavering commitment to fostering investment and growth opportunities on the African continent. In a rapidly evolving business landscape, this publication serves as a vital guide for investors, showcasing deep insights into what is driving and influencing deal and investment decision-making across Africa and KPMG’s dedication to facilitating successful deals on behalf of our clients with our multi-disciplinary collaborative teams.”

“KPMG is proud to unveil the 2023 Doing Deals in Africa Publication, a testament to our continued dedication to unlocking the potential of the African business landscape,” said Julius Ngonga, Partner, Strategy & Deal Advisory, KPMG East Africa. “This comprehensive guide reflects our commitment to empowering businesses with the knowledge and insights needed to navigate the ever-changing market dynamics and seize promising opportunities across the continent.”

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