Global consulting and professional services firm KPMG recently released its Doing Deals in Sub-Saharan Africa report–October 2023, which provides insights into the investment landscape in the Sub-Saharan Africa (SSA) region.
The report is based on a survey of 150 senior executives experienced in SSA dealmaking over the last four years. The survey, conducted in H2-2022, equally represented domestic (i.e., based in SSA) and international investors (i.e., based outside of SSA).
Among the domestic investors, 71% were strategic investors, and 29% were financial investors. Among international investors, 69% were strategic and 31% were financial investors.
According to the survey, Tanzania comes out as the 3rd most preferred destination in SSA, just after South Africa and Nigeria, to acquire or invest over the next two years.
Top Investments in Sub-Saharan Africa in 2022
South Africa was the source of five of the 10 largest deals by value seen in SSA in 2022.
Meanwhile, the top five energy and mining deals were spread across the continent, with two in South Africa and one each in Tanzania, Angola, and Nigeria.
The report also highlights that in 2022, East Africa enjoyed a record year for deal volume, which increased by 60% year-on-year to 75%.
The survey shows that accessing domestic distribution channels is a major reason for dealmaking in SSA, particularly in East Africa, where 62% of respondents say this is one of the top reasons for them pursuing their most recent deal.
In the East African sub-region, the top deal in 2022 was the USD 878m acquisition of Tanzania-based nickel producer Lifezone Metals by GoGreen Investments, a US special purpose acquisition company.
The deal will see Lifezone Metals, which is looking to capitalize on industry appetite across the battery metals supply chain, list on the New York Stock Exchange, becoming the first pure-play nickel resource and cleaner technology company to do so.
All in all, Tanzania was the 11th destination or headquarters in Sub-Saharan Africa for acquisition or investment in 2022.
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