According to Refinitiv’s 2022 Regional Investment Banking Analysis Report, the value of announced M&A deals with any involvement in Sub-Saharan Africa reached $7.0 billion in the first three months of 2022.
However, the amount was 13% lower than the value recorded during the same period in 2021, despite an 11% increase in the number of transactions.
Equity and equity issuance related to Sub-Saharan Africa was $496.9 million in the first quarter of 2022, compared to just $18.4 million in the same period last year .
Regional debt issuances totaled $9.4 billion during the first quarter of 2022, down 30% from the value recorded during the same period in 2021, although historically high, only 2018 and 2021 recording higher totals in the first quarter.
Equity capital markets underwriting fees fell 1% to $8.8 million, the lowest first quarter total in twelve years.
Capital markets fees were down 16% from last year’s record start to $40.7 million, while syndicated loan fees were down 81% to $6.3 million .
Advisory fees earned in the region from completed M&A transactions hit a three-year high of $41.4 million, a 163% increase from the first three months of 2021.
Seventy-nine percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2022, and 33 percent came from transactions in the high-tech sector.
Goldman Sachs collected the most investment banking fees in the region during the first quarter of 2022, a total of $11.4 million or an 11.7% share of the total fee pool.
Deals worth $5.2 billion were in a sub-Saharan Africa target, an increase of 10% from the first quarter of 2021.
While domestic deals fell 17% from a year ago, inbound deals involving an acquirer from non-Sub-Saharan Africa grew 44% to $3.0 billion, the highest total in the first quarter in five years.
Meanwhile, outbound mergers and acquisitions in sub-Saharan Africa totaled $776.0 million, less than half the value recorded in the same period last year and with a 15% drop in the number of transactions.
High technology was the most targeted sector by value in sub-Saharan Africa during the first quarter of 2022, while the financial sector recorded the highest number of transactions in the region.
South Africa was the most targeted country, with $2.5 billion in M&A announcements, or 48% of the region’s total activity.
With advisory work on transactions worth a combined $1.8 billion, Goldman Sachs held the top spot in the ranking of financial advisers for transactions with any involvement in sub-Saharan Africa during the first quarter of 2022.
All proceeds were raised by a follow-on show with MTN Nigeria Communications and South African coal exporter Thungela Resources among those in the region who raised new equity from follow-on.
No convertible or IPO offerings were registered in the region.
Nigerian issuers raised more in equity markets than any other country in Sub-Saharan Africa during the first quarter of 2022, totaling $277.1 million, while South African issuers raised a total of $219.9 million.
Morgan Stanley took the top spot in the ECM underwriting rankings in sub-Saharan Africa during the first quarter of 2022 with a market share of 23%, followed by Java Capital with 13%.
The number of shows decreased by 43% compared to the same time last year. South Africa was the most active issuing country during the first quarter of 2022, accounting for 59% of total bond proceeds, followed by Nigeria (22%) and Côte d’Ivoire (14%).
Technology sector issuers accounted for 56% of the proceeds raised in the first three months of 2022, while government and agency issuers accounted for 27%.
Citi took the top spot in the ranking of sub-Saharan African bond bookrunners in the first quarter of 2022, with $1.7 billion in related products, representing a market share of 18.1%.