Doing Deals in Sub-Saharan Africa 2024

Sub-Saharan Africa (“SSA”) is a diverse collection of countries with abundant natural resources, an attractive mix of favorable demographic profiles, and growing communication and technology adoption.

Despite infrastructure challenges, political instability, and macroeconomic headwinds, investment flows and transactions have remained resilient, with market factors presenting growth opportunities.

Investor appetite is returning with foreign direct investment (“FDI”) expected to reach 2.13% of gross domestic product (“GDP”) in 2024, up from 1.74% last year, according to the International Monetary Fund 1 (“IMF”). Additionally, the number of announced FDI projects rose by 10% in 2023 compared with the previous year.

The IMF forecasted GDP in the region to increase from 3.4% in 2023 to 3.8% in 2024, with nearly two thirds of countries anticipating higher growth. This momentum is likely to be sustained in 2025 with growth projected to reach 4%. Inflation across the region is expected to halve from a peak of 10% in late 2022. Public debt ratios are stabilising and SSA economies have returned to issuing debt on the international capital market after a two-year hiatus.

This publication presents how investors are strategically approaching the region, which, despite its recent challenges, offers strong potential for superior risk-adjusted returns. As such, this publication covers:

• opportunities available in the region;

• sectors and markets that have piqued investors’ interest;

• strategies employed by investors to achieve deal success; and

• risk management policies adopted by investors to overcome challenges for deal-making in a region with a capacity for exceptional future growth.