African Tech And Telecommunications Expected To Attract $5.9B In M&A Investment In 2019

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Written by Peter Pedroncelli

Africa is considered a region of significant investment potential for technology, and mergers and acquisition activity is expected to reflect this in 2019.

M&A figures in African tech, media, and telecommunications expected to see investments worth $5.9 billion this year, according to Baker McKenzie‘s Global Transaction Forecast in association with Oxford Economics.

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A total of 35 deals were completed in the high technology sector in 2018, with those that were reported amounting to $1.5 billion, ITWebAfrica reports.

In telecommunications, 13 deals were concluded in 2018 amounting to $250 million.

Tech companies in South Africa, Nigeria, and Kenya are expected to secure the biggest funding deals of 2019, according to TheStart.

funding deals M&A investment
M&A investment activity in Africa’s tech sector is expected to show significant growth in 2019. Photo – AP – Ted Shaffrey

Researchers expect fintech, health tech, mobility, and agritech to be the most popular tech sectors for investment in Africa.

Growing M&A investment shows increased reliance on tech

M&A investment deals in African tech, media and telecommunications point to the growing reliance of African consumers on technology across multiple platforms, according to ITWebAfrica.

This has led to cross-sector disruption. Financial, energy, transport, retail, health and agricultural sectors in Africa seek opportunities to expand their tech infrastructure and acquire the skills and innovation needed to keep up with demand.

Investment has been affected by political uncertainty, corruption, and bad governance, but this has not impacted the demand for tech, McKenzie reports.