As Deal-Making Decreases, AfCFTA Expected To Boost Recovery

February 1, 2021 EABW News 0 Comments

As Deal-making Decreases, AfCFTA Expected to Boost Recovery. Deal-making activity in sub-Saharan Africa (SSA) dropped in the second half of 2020 (H2 2020) when compared to the second half of 2019 (H2 2019) and year-on-year, deals were also down in both volume and value when compared to 2019.

According to Baker McKenzie’s analysis of Refinitiv data, M&A transactions dropped in SSA in H2 2020, down 4% compared to H2 2019 with 329 deals in the period. Deal value fell by 17% to USD8.9 billion in the second half of 2020, compared to the same period in 2019.

For the full year 2020, transactions dropped by 8%, with 625 deals in 2020, and deal value dropped by 33%, with deals valued at USD17.4 billion in total for 2020.

However, as Africa gears up for its post-pandemic recovery, it appears that the opportunities presented by the recent launch of free trade across the continent, as well as foreign investment opportunities, due in part to new partnerships and trade relationships, could be key factors in attracting much-needed investment to the region. Read More.

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