Private equity and DFI investments deals continued to account for the largest number at 21, followed by venture capital with 17 and mergers and acquisitions at 10.
In terms of geographical distribution, Kenya continued to host the bulk of the deals in the region with 31, in line with Nairobi’s status as the region's financial hub.
Uganda followed with 10, while Ethiopia, Rwanda, and Tanzania accounted for five, four, and two deals respectively.
The disclosed value of corporate deals in East Africa halved in the first half of the year compared to last year as Covid-19 jitters continued to weigh on cross-border investment activity.
An analysis of deals compiled by advisory firm I&M Burbidge Capital shows that while the total number of deals only reduced slightly by three to 53 in the period, the disclosed value recorded a sharp fall from $716 million (Sh77.8 billion) in the first half of 2020 to $377 million (Sh41 billion) this year.
There are, however, several deals whose value is not disclosed by the parties, most commonly in mergers and acquisitions.
“The underperformance as compared with the same period in 2020 is indicative of the impact of Covid-19 restrictions on private capital markets. Private equity and development finance institution (DFI) investors continued to dominate the market recording the highest number of such deals during the month at seven,” said the firm in the report.
Private equity and DFI investments deals continued to account for the largest number at 21, followed by venture capital with 17 and mergers and acquisitions at 10.
In terms of geographical distribution, Kenya continued to host the bulk of the deals in the region with 31, in line with Nairobi’s status as the region's financial hub.
Uganda followed with 10, while Ethiopia, Rwanda, and Tanzania accounted for five, four, and two deals respectively.
Looking forward, I&M Burbidge expects that mergers and acquisitions will pick up from a two-year slump as economies continue to recover on the back of Covid-19 vaccinations.
“Whilst there has been a dearth of M&A transactions over the last two years, we are now starting to see interest from local and regional players in sub-Saharan Africa that have weathered the pandemic well and are flush with cash starting to look for acquisition opportunities in East Africa and from East Africa to other SSA geographies,” said the firm.
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