Sub Saharan Africa mergers/Acquisition transactions totalled $ 129.7bn in 2021

Refinitiv has said that an estimated $506.0 million worth of investment banking fees were generated in Sub-Saharan Africa during 2021, 8 per cent less than in 2020 and the lowest annual fee total in the region since 2014.  It said in a report that while debt capital markets underwriting fees increased 128 per cent to $150.3 million, the highest full year total since our records began in 2000, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from 2020. 

According to the report Equity fees declined 35 per cent to $56.9 million, while syndicated lending fees declined 17 per cent to $216.0 million.  Advisory fees earned in the region from completed M&A transactions reached $82.9 million, down 38% year-on-year to the lowest annual total since 2003.  Fifty-five percent of all Sub-Saharan African fees were generated in South Africa during 2021, and 25% were earned from deals in the financial sector. Standard Chartered earned the most investment banking fees in the region during 2021, a total of $37.7 million or a 7.5% share of the total fee pool.

It said that the value of announced M&A transactions with any Sub-Saharan African involvement reached $129.7 billion during 2021, more than four-times the value recorded during 2020 and the highest full-year total since our records began in 1980.  The high dollar-value was boosted by the Naspers/Prosus share swap in May, and Redefine Properties’ offer for the remaining shares in retail property company EPP, which together were worth a more than $70 billion.  The number of deals increased 13% from 2020 to a four-year high of 853.

M&A involving a Sub-Saharan African target reached $79.6 billion, again lifted by the share swap to an all-time record annual total, while the number of deals increased 21% over the previous year.  Inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 164% to $20.1 billion, while outbound M&A reached an all-time high of US$42.3 billion.

High technology was the most targeted sector by value in Sub-Saharan Africa during 2021, while the materials sector saw the highest number of deals in the region.  South Africa was the most targeted nation, with US$63.7 billion in M&A announcements over the year, equivalent to 80% of total activity recorded in the region. With advisory work on deals worth a combined U$52.1 billion, Morgan Stanley held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during 2021. Sub-Saharan African equity and equity-related issuance reached $1.4 billion during 2021, down 43% compared to 2020 and the lowest annual total since 2005.  The number of issues declined 38%, again to a 16-year low.  Issuers in South Africa raised more in the equity capital markets than any other Sub-Saharan African nation during 2021, a total of US$979.6 million, followed Mauritian and Ugandan issuers.

Follow-on offerings raised $1.3 billion in 2021 with Pepkor Holdings, Lighthouse Capital and financial services group FirstRand Ltd among those in the region raising new equity funds from follow-ons in 2021.  Just one initial public offering was recorded in the region during 2021, MTN Uganda raised U$163.0 million listing on the Uganda Securities Exchange in December. Investec and Goldman Sachs share first place in the Sub-Saharan African ECM underwriting league table during 2021, each with a 24% market share.  Sub-Saharan African debt issuance totalled $43.5 billion during 2021, up 125% from the value recorded during 2020 and the highest full-year total since our records began in 1980.  The number of new offerings brought to market increased 46% over 2020 to a four-year high of 73.  South Africa was the most active issuer nation during 2021, accounting for 26% of total bond proceeds, followed by Ivory Coast and Nigeria with 22% and 16%, respectively.  DCM activity from Government & Agencies accounted for 51% of issuance during full year 2021, while financial sector issuance accounted for 26%. Citi took the top spot in the Sub-Saharan African bond book runner ranking during 2021, with US$6.7 billion of related proceeds, or a 16% market share.