Not all bad news amidst African M&A decrease

Recent reports have suggested a precipitous decline in mergers and acquisitions (M&A) in Africa. In the first half of 2018, total deal volumes and values of M&A transactions declined with a 44% decrease in deal volume and a 57% decrease in aggregate value, in comparison to figures in the preceding year. In fact, M&A transactions on the continent have been on a steady decline for a few years now, as their value has dropped from $64.9 billion in 2015 to $32.4 billion in 2017. Several theories have been posited in the attempt to explain this decline, including corruption and bad governance coupled with strong anti-bribery and anti-corruption laws in investor countries. Other reasons include economic and political instability, and generally poor business climates in the region. However, despite the decline in M&A activity, opportunities for growth exist in on the continent and make it a region to watch for investor countries, Canada being no exception. As…

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