Africa Private Capital Deals Reach $16.1B as Investors Shift to Larger Transactions

Transaction volume fell to 172 deals. This marks a drop from 188 in the prior quarter and 201 a year earlier. However, the decline signals a pivot to larger investments. Mega deals in Nigeria drove most of the value. Investors favour infrastructure assets with strong returns.

Mega Deals Reshape Nigeria’s Landscape

Two Nigerian transactions dominated Q1. The $6.2 billion MTN–IHS deal led the pack. The $4 billion Dangote Refinery financing followed close behind. Together, they captured two-thirds of total value. These moves highlight appetite for telecoms and energy sectors. Nigeria’s Dangote Refinery draws sustained interest. It positions the country as Africa’s largest economy.

High interest rates in advanced economies shape this trend. Investors seek selective, long-term plays. Africa’s infrastructure gaps remain wide. Demand stays strong. As a result, capital flows to essential projects. MTN Group, a pan-African telecom giant, sold towers to IHS Holding. This unlocks value and funds expansion. Dangote Refinery advances local refining capacity. It reduces import reliance.

Mid-Market Recovery and Sector Shifts

Mid-sized deals, valued at $25 million to $75 million, rose in Q1. Egypt led this segment. It hosted over half of these transactions. Real estate and urban development fuelled activity. Population growth drives housing demand.

Traditional hubs like Nigeria, Egypt, Kenya, Ghana, and South Africa still lead. However, Morocco, Zambia, and Uganda gain ground. Ghana ties deals to regional platforms. Fintech, logistics, and distributed energy expand cross-border.

Financial services topped sectors. It claimed nearly a third of transactions. Lending to small and medium enterprises leads. West Africa anchors fintech. Electric mobility rises in East Africa. Electric vehicles and battery-swapping draw funds. Artificial intelligence startups secure early capital.

Mergers and acquisitions hit a quarter of deals. Telecoms, industrials, and fintech consolidate. Afreximbank shone brightest. It joined a dozen deals. These span energy, transport, and startups. Its role cuts risk for private capital.

Investors should track mid-market flows into Egypt and East Africa. Mid-sized infrastructure and tech bets offer entry points. Watch Afreximbank’s next moves for de-risked opportunities.

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