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Private equity geographic focus

The dip in transaction activity in 2015 is not surprising, considering the macroeconomic uncertainty experienced in many key markets during the year. The unknown impact of declining oil revenues, currency exchange controls, elections and the like, has caused a ‘wait-and-see’ lull in activity. This has been seen across all regions, with total investments dipping to levels last seen in 2010 and 2011. On the other hand, M&A activity on the continent appears to have trended upward in 2015 with over 1200 transactions reported, an increase from 990 the previous year (Source: S&P Capital IQ).

South African transactions made up approximately 40% of the total in 2015, up from 34% the previous year. Nigeria increased from 10% in 2014 to 11% in the 2015, while East Africa declined from its high of 24% in 2014 down to 21%.

Source: RisCura, S & P Capital IQ

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