Africa’s private capital market saw a notable rebound in the third quarter of 2025, buoyed by a surge in mergers and acquisitions led by Canal+’s landmark takeover of MultiChoice Group, completed in September.
According to the Q3 2025 Private Capital in Africa Activity report by Stears, the continent recorded 177 private market transactions valued at $5 billion, a 60% increase from the previous quarter’s $3 billion total.
The African market intelligence firm noted that the disclosure rate fell to 51% (Q2 2025: 63%), below the typical quarterly average.
“The last quarter saw a steady flow of strategic mergers and acquisitions
that continued to lift overall deal values,” the report said. “Activity remained particularly strong in Southern Africa, with additional momentum coming from Morocco and Nigeria, underscoring the growing role of corporate consolidation and secondary exits in sustaining investor liquidity.”
The French media company’s $2 billion acquisition of the South African pay-TV provider accounted for 40% of the quarter’s total disclosed deal value, making it the second-largest private transaction of the year after the $2.2 billion part-acquisition of Khazna Data Center by artificial intelligence company G42.
Smaller transactions gain traction
Despite the headline-making buyout, data from the report shows that smaller deals dominated activity, signalling deepening investor appetite for mid-tier and early-stage opportunities. The share of large and mega deals fell to 21% from 27% in the previous quarter, while transactions valued between $2.5 million and $10 million rose to 32%.
Analysts say this shift reflects renewed focus on Series A venture rounds, particularly in digital and consumer-tech segments. Technology emerged as the most active sector, accounting for 21% of all transactions and surpassing consumer goods and services for the first time.
Key deals included Sanari Capital’s $23.4 million investment in Ctrack, a South African telematics company.
Regional trends and sector dynamics
Southern Africa reclaimed the top spot in regional deal distribution with 31% of transactions, followed closely by West Africa (30%) and East Africa (28%). South Africa accounted for the bulk of its region’s activity, representing 87% of total deals, while Nigeria, Kenya, and Egypt led in their respective regions.
The report also highlighted a steady rise in investor participation within Francophone West Africa, which represented 22% of the subregion’s total transactions. Nigeria, however, maintained its dominance, accounting for 36% of deals across West Africa.
Exits and financing patterns
Trade sales remained the most common exit route, driven by strategic acquisitions. Notable examples included Phatisa’s sale of Deltamune to Vaxxinova, Verod Capital’s divestment from TAG West Africa, and BII and Norfund’s sale of Klinchenberg B.V. to Savannah Energy.
Meanwhile, debt financing continued to concentrate in agriculture and energy, particularly in East and West Africa. Southern Africa dominated M&A activity, representing 44% of all deals, while North Africa led project financing through major transactions such as the African Development Bank’s $58 million investment in STEG and a $490 million loan to the Egyptian Soda Ash Company.
Stears noted that the quarter’s momentum reflects sustained investor confidence despite global headwinds, supported by rising deal diversification and continued inflows into technology, energy, and climate-focused ventures.
