Investment banking revenues across Sub-Saharan Africa plummeted to $169.3 million in the first half of 2025, representing a 4% decline from the previous year and the lowest earnings since 2012.
London Stock Exchange Group data revealed significant contractions across key revenue streams, with advisory fees from completed mergers and acquisitions falling 22% to $59.3 million, marking the weakest first-half performance in four years.
The regional financial services sector faced particular challenges in equity capital markets, where underwriting fees collapsed 66% to just $5.5 million, representing the lowest January-June total since comprehensive records began in 2000.
However, some segments showed resilience, with debt capital markets underwriting fees increasing 14% to $26.8 million and syndicated lending fees rising 28% to $77.7 million, suggesting selective investor confidence in fixed-income instruments.
South Africa dominated regional fee generation, accounting for 47% of total Sub-Saharan African investment banking revenues, followed by Mauritius and Ivory Coast each contributing 13% to the continental total.
Barclays emerged as the leading fee earner, generating $16.3 million or 10% of the regional fee pool, highlighting the continued dominance of international banks in African capital markets.
The broader mergers and acquisitions landscape showed concerning trends, with announced transaction values reaching $12.3 billion during the first six months, down 28% from 2024 levels and representing the lowest first-half total since 2020.
Deals targeting Sub-Saharan African companies particularly struggled, totaling $5.9 billion in the first half, a 45% decline from the previous year and marking a five-year low. Domestic merger activity suffered a 64% value decline, while inbound deals decreased 32%.
The Energy and Power sector provided some bright spots, accounting for 52% of Sub-Saharan African target merger and acquisition activity, boosted by Vitol Netherlands Cooperatief’s $1.7 billion bid for Eni’s Baleine Project in Ivory Coast.
Materials sector transactions followed with 20% of overall regional deal activity, though transaction volumes remained subdued compared to historical levels. Aliyu Abdullahi Ibrahim
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