Africa M&A Is Recovering — But Execution Matters More Than Optimism
By Greg Stonefield, Partner at Charles Russell Speechlys
There is little doubt that sentiment around African M&A has improved over the past 12 to 18 months.
Partner | Charles Russell Speechlys
At this year’s Africa Debate and Indaba, the tone was noticeably more constructive than it has been for some time. Conversations that, in previous years, centred heavily on caution, capital scarcity and delayed decision-making felt more forward-looking. Investors, sponsors and corporates are clearly re-engaging with the continent in a more active way.
However, it would be a mistake to interpret that as a broad return to risk appetite. What is happening is more selective, and arguably more significant.
The recovery in African deal activity is not being driven by a sudden surge of optimism or an indiscriminate search for growth. Financing conditions remain relatively tight, investor discipline remains high and geopolitical uncertainty continues to shape global capital allocation decisions.
What has changed is that certain African sectors, assets and infrastructure have become increasingly difficult for global capital to ignore.
Critical minerals are part of that story, but only part. Investors are looking well beyond extraction itself and focusing increasingly on the infrastructure surrounding it: logistics corridors, power supply, refining capacity, ports, processing facilities and regional industrial platforms. Recent US interest in critical minerals and associated infrastructure reflects a broader shift in how strategic assets across Africa are being viewed within global supply-chain and industrial policy discussions.
That shift matters because it changes the nature of transactions. Historically, many Africa-focused investments were underwritten primarily around growth assumptions or commodity exposure. Increasingly, transactions are being assessed through a different lens altogether. Access, resilience and long-term positioning are becoming just as important as headline return profiles.
At the same time, increased strategic relevance does not reduce execution complexity. In many cases, it intensifies it. As assets become more strategically important, governments understandably become more focused on local participation, downstream value creation and long-term economic alignment. Investors, meanwhile, are becoming less tolerant of execution risk at precisely the moment strategic interest is increasing.
That tension is shaping the market. Execution capability is increasingly becoming a differentiator in its own right. Capital is concentrating around jurisdictions, counterparties and management teams perceived as capable of navigating regulatory complexity, infrastructure constraints and stakeholder alignment over the long term. The premium is shifting away from opportunity alone and towards deliverability.
That may also explain why established regional operators and scalable platforms are attracting disproportionate attention. In a more disciplined market, operational credibility and proven execution increasingly matter.
This is particularly visible in infrastructure-heavy sectors, where transactions are becoming more layered and partnership-driven. Sovereign participation, development finance institutions, strategic investors and private capital are increasingly sitting alongside one another within the same structures. In many cases, successful dealmaking now depends less on financial engineering alone and more on the ability to align commercial, political and strategic interests coherently over time.
For ECM, the implications may become increasingly important. A selective reopening of African equity capital markets around regionally significant businesses and infrastructure-linked platforms feels increasingly plausible, particularly where those businesses sit within energy transition, logistics or industrial processing themes. However, any reopening is unlikely to be broad-based.
The market remains highly discriminating. That is why simplistic narratives about an “Africa boom” still miss the point. The more important shift is not optimism alone. It is that strategic relevance is beginning to reshape how global capital approaches African transactions altogether.
In that environment, execution may matter more than ever.