The biggest deals behind Africa’s strongest quarter in four years

Africa’s Mergers and Acquisitions (M&A) market started the year with its strongest first quarter in four years, as investors poured money into large telecommunications, banking and energy transactions while becoming increasingly selective about where they deploy capital.

According to DealMakers Africa, the continent recorded 89 M&A and private equity transactions worth $4.53 billion in the first quarter of 2026, up 55 percent from $2.92 billion in the corresponding period last year. The increase came despite a slight decline in deal volumes, underscoring a growing preference for larger, lower-risk acquisitions.

The quarter’s biggest transactions were concentrated in telecoms, financial services and energy, sectors that continue to attract investors seeking scale, stable cash flows and long-term growth opportunities.

Here are the 10 biggest M&A and private equity deals announced in Africa during the first quarter of 2026.

MTN’s $2.2 billion acquisition of IHS shares

The largest deal of the quarter was MTN’s acquisition of the remaining 75.3 percent stake in IHS that it did not already own. Announced on February 17, the transaction was valued at $2.2 billion and accounted for nearly half of the value of the continent’s largest deals during the period.

The deal reinforces MTN’s position as one of Africa’s most active corporate acquirers and highlights continued investor appetite for telecommunications infrastructure assets.

Nedbank’s $855 million acquisition of a stake in NCBA Group

South Africa’s Nedbank acquired a 66 percent stake in Kenya’s NCBA Group in a deal valued at $855 million.

The transaction shows the growing consolidation in Africa’s banking sector as lenders pursue regional expansion and seek greater scale in increasingly competitive markets.

Azule Energy’s $310 million Angola asset sale

Angola featured prominently among the continent’s largest deals as Azule Energy sold its participating interest in offshore Blocks 14 and 14K in the Lower Congo Basin to Etu Energias for $310 million.

The deal reflects continued investor interest in Africa’s upstream oil and gas sector.

Enagol’s $260 million offshore acquisition

Another Angolan energy transaction made the list, with Enagol, a subsidiary of Sonangol, acquiring a 31 percent operated interest in Block 14 and a 5.5 percent non-operated interest in Block 14K from Chevron.

The transaction was valued at approximately $260 million.

Panoro Energy’s $220 million Equatorial Guinea acquisition

Panoro Energy agreed to acquire Kosmos Energy’s stake in the Ceiba Field and Okume Complex offshore Equatorial Guinea.

The deal could be worth up to $220 million, including contingent payments tied to future performance.

Tullow Ghana’s $205 million FPSO acquisition

Tullow Ghana and its joint-venture partners acquired the FPSO Prof. John Evans Atta Mills from TEN Ghana MV25 BV for $205 million.

The acquisition is expected to strengthen long-term production and operational efficiency at the TEN oil fields.

Africa Feed & Food’s $91 million investment round

Morocco-based agribusiness company Africa Feed & Food secured approximately $91 million in investment from Proparco and RMBV.

The transaction was North Africa’s largest deal during the quarter and highlights growing investor interest in food security and agricultural value chains.

Lloyds Global Resources’ $91 million DRC mining deal

Lloyds Global Resources acquired a 50 percent stake in Nexus Holdco FZCO, which owns interests in mining assets in the Democratic Republic of Congo.

The deal was valued at about $91 million and reflects sustained investor appetite for Africa’s critical minerals sector.

DPI’s $50 million follow-on investment in Egypt’s Kayan

Development Partners International (DPI) made a $50 million follow-on investment in Egyptian company Kayan, signalling continued private-equity confidence in North Africa’s growth prospects.

Breadfast’s $50 million funding round

Egyptian grocery-delivery platform Breadfast closed a $50 million pre-Series C funding round backed by investors including IFC, EBRD, Novastar Ventures, SBI Investment, Algebra Ventures and Y Combinator.

The transaction highlights continued investor interest in scalable consumer technology businesses despite a more challenging fundraising environment.

Bigger deals, fewer bets

Beyond the headline numbers, the data points to a significant shift in the continent’s investment landscape. While overall deal value rose, investors increasingly concentrated capital in larger, established businesses, particularly in energy, financial services and telecommunications.

Private equity accounted for half of all transactions recorded during the quarter, according to DealMakers Africa.

“While debt and equity investors each play distinct but equally important roles in the development of a maturing start-up ecosystem, concerns remain around the decline in smaller early-stage equity deals,” said Marylou Greig, editor at DealMakers Africa.

“These transactions are critical for building the next generation of companies capable of attracting larger funding rounds in the future.”

Greig warned that while larger transactions continue to support overall funding levels, the slowdown in early-stage investment could weaken the pipeline of scalable African businesses over time.

“The slowdown in early-stage activity may not immediately affect aggregate funding totals—particularly while larger equity rounds and debt transactions continue to come through—but its longer-term implications for the pipeline of scalable African businesses are worth watching,” she said.

Regionally, West Africa remained the continent’s most active dealmaking market with 30 transactions, representing 34 percent of reported activity. North Africa followed with 19 deals, while East Africa recorded 18.

At the country level, Nigeria led with 22 deals, followed by Kenya with 13 and Morocco with 10.

The continent’s startup ecosystem also showed resilience. According to Africa: The Big Deal, African startups raised $3.3 billion over the 12 months to March 2026, comprising $1.8 billion in equity funding and $1.4 billion in debt financing.

“However, a closer look at the data points to an evolving funding landscape, where overall growth has increasingly been driven by a surge in debt funding, offsetting a decline in equity capital raised,” the DealMakers report said.