South Africa has emerged as the leading force behind Africa’s corporate deal-making in the first quarter of 2025, accounting for more than a quarter of all mergers, acquisitions and other transactions across the continent. This is according to the latest Stears Private Capital in Africa Report for Q1 2025.
Out of 105 recorded deals across Africa during the period, 30 originated from South Africa, underscoring the country’s continued dominance in corporate activity. South Africa also led in single-country transactions, making up 17% of all African deals on its own.
The report highlights a notable shift in deal sizes. Mega transactions worth $75 million or more dropped sharply to just 5% of the total deal flow, compared to 27% a year earlier. In their place, deals valued between $25 million and $75 million saw increased activity, indicating a recalibration of investment appetite amid evolving market conditions.
Financial services emerged as the top-performing sector, contributing 30% of all transactions – double its 15% share in the previous quarter. Meanwhile, telecoms remained a key focus, with all telecom transactions for Africa in Q1 2025 concentrated in Southern Africa, particularly in the fibre infrastructure space.
Noteworthy telecom-related transactions included:
- Infinite Partners and the Public Investment Corporation (PIC) acquiring Evotel, Linklayer, and Net99, now consolidated under a new entity, Fibre Holdco.
- Meridiam SAS securing a majority stake in Ilitha, a South African fibre network operator.
- Vumatel completing its full acquisition of Herotel Telecoms by increasing its shareholding from 49.96% to 100%.
Regionally, Southern Africa led the continent with 37% of total deals, followed by East, West and North Africa. Within Southern Africa, South Africa was responsible for 77% of the transactions, with the remaining 23% spread across neighbouring countries.
With strong early momentum in 2025, South Africa’s role in shaping Africa’s private capital landscape appears set to continue, especially as financial services and telecom infrastructure remain core growth areas.