Mergers and acquisitions in Africa’s ICT industry will more than quadruple in 2018- Baker McKenzie

African technology and telecommunication sectors would witness more than four times Mergers and Acquisitions (M&A) in 2018 than it did in 2017, forecast Baker McKenzie; a global leader in advising on cross border transactions.

The Global Transaction forecast, developed in association with Oxford Economics noted that Mergers and Acquisitions (M&A) activity in the technology and telecommunication sectors in Africa will more than quadruple this year.

In 2017, both sectors were valued at $1.2 billion. This year, the report predicts a $5.9 billion increase and a further $5.9 billion the year after. However, 2020 looks gloomy as it is predicted to witness a $ 3.9 billion decrease.

Explaining how the report came about its outlook for the continent, Darryl Bernstein, South Africa’s head of the technology, media and telecommunications practice at Baker McKenzie noted that “Africa’s growing telecoms infrastructure and access to online services and platforms continue to improve access to the online economy. Increased local demand for innovative products, services and solutions drives offshore telecommunications and technology companies to target opportunities in Africa.”

Going further she stated that, “the growing financial services sector has also seen domestic banks make significant investments in technology to advance their innovation agenda. African technology companies are also targeting offshore investments in companies that will deepen their access to new technologies, markets and talent.”

Adding that, “The expansion of emerging technologies across industries, including agribusiness, automotive and of course fintech, will also drive M&A activity as we expect to see more cross-sector deals involving technology.”