African corporates accelerate cross-border acquisitions to drive scale
Major African companies are increasingly relying on mergers and acquisitions rather than organic expansion to navigate fragmented markets, secure regulatory licenses, and build regional scale.
African corporate giants are increasingly buying their way to scale, with mergers and acquisitions overtaking organic expansion as the primary growth strategy. Boston Consulting Group found that the continent's top 30 companies operated across an average of 16 countries by 2018, doubling their footprint from a decade earlier.
This shift reflects the reality of doing business across numerous fragmented markets governed by distinct regulatory regimes. Acquiring an established local operator allows companies to secure licenses, talent, and distribution networks far faster than building them from scratch.
DealMakers Africa recorded 1,377 transactions in 2024, an 11.5 percent increase from the previous year, with corporates accounting for more than half of all activity. Boston Consulting Group also noted that African deal value rose 36 percent in the first nine months of 2024 compared to the same period in 2023, while deal counts remained flat, pointing to larger average transaction sizes.
South Africa remains the primary engine for this consolidation, leading continental dealmaking with 35 percent of total recorded value in 2025, according to HSF Kramer. Kenya and Egypt followed with roughly 20 percent and 15 percent respectively, reflecting the depth of their capital markets and private equity presence.
South African firms alone pursued approximately $3.19 billion in acquisitions targeting Kenyan blue-chip companies, involving major players like Absa, Vodacom, and Nedbank. The consolidation trend is particularly pronounced in banking, telecommunications, insurance, and consumer goods, where multi-country footprints help spread costs and mitigate single-market currency or political risks.
The technology sector is mirroring this broader corporate strategy with rapid dealmaking. TechCabal reported 66 acquisitions in 2025, a 69 percent jump from the previous year, as companies use mergers to quickly obtain regulatory licenses and build regional payment and logistics networks.
This corporate consolidation is unfolding against a backdrop of intense geopolitical competition for infrastructure and market access, particularly involving China and the United States. As African-origin investors lead the current pipeline, sectors with high fragmentation such as logistics, health services, and agricultural processing are positioned for the next wave of cross-border deals.
