Our fifth annual review of transactional activity across Kenya, Uganda, Tanzania, Rwanda and Ethiopia finds a market that has moved decisively past the caution of 2023. Announced deal value rose by roughly a fifth year on year, while the number of transactions grew more slowly, a sign that larger, more strategic deals are returning.
Three forces shaping the market
First, infrastructure capital has become more patient. Pension funds and sovereign investors are taking long-dated positions in power, logistics and digital infrastructure, often alongside development finance institutions that absorb early-stage risk.
Second, consolidation in financial services continues. Regulators are pressing for stronger capital buffers, and the result is a steady flow of bank and insurer acquisitions, many of them cross-border.
Third, mid-market private equity has rediscovered its appetite. Sponsors who spent two years supporting existing portfolios are deploying capital again, particularly in healthcare, education and consumer staples.
What dealmakers should plan for
Regulatory timetables remain the single biggest variable in deal planning. Parties should expect regional merger control, sector regulators and foreign investment reviews to run in parallel, and should build those timetables into long-stop dates from the outset.
We expect 2027 to bring more take-privates, more secondary sales by early venture investors and a growing number of African strategic buyers acquiring outside their home markets.
This publication is for general information only and does not constitute legal advice. Igweta Advocates is a fictional firm presented for demonstration.