INVESTMENT BANKING

An estimated US$64.8 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2023, down 50% from the first quarter of 2022 and the lowest first quarter total since 2010.  Fees declined 66% compared to the fourth quarter of 2022. Equity capital markets underwriting fees totalled US$9.6 million, an increase of 9% compared to the first quarter of 2022, which ranked as the slowest first quarter for Sub-Saharan Africa IB fees since 2010.  Debt capital markets fees declined 47% to US$23.2 million, while syndicated lending fees declined 15% to a nine-year low of US$18.0 million.

Advisory fees earned from completed M&A transactions in the region reached US$14.0 million during the first quarter of 2023, down 75% from 2022 levels and marking the slowest first quarter for M&A fees in Sub-Saharan Africa since 2005. Seventy-four percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2023, followed by Ivory coast (8%) and Nigeria (5%).  JP Morgan earned the most investment banking fees in the region during the first quarter of 2023, a total of US$14.3 million or a 22% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$2.9 billion during the first quarter of 2023, an 80% decline compared to first quarter 2022 and the lowest first quarter total since 2003.  The number of Sub-Saharan African deals declined 30% compared to a year ago, a nine-year low. Deals involving a Sub-Saharan African target totalled US$2.3 billion during the first quarter of 2022, down 81% from 2022 levels and a three-year low.  The number of deals declined 28% from last year.  Inbound deals involving a non-Sub-Saharan African acquiror declined 85% to US$1.5 billion, while domestic deals declined 64% to US$838.6 million.  Sub-Saharan African outbound M&A totalled US$384.1 million, down 53% compared to the value recorded during 2022 and a nine-year low.

Materials deal making totalled US$699.4 million, or 30% of first quarter 2023 Sub-Saharan African involvement M&A activity, an increase of 34% compared to a year ago. Energy & Power and Consumer Products & Services rounded out the top three sectors for first quarter 2023 M&A activity.  Nigeria was the most targeted nation, followed by Zimbabwe and South Africa. Java Capital (Proprietary) Ltd topped the any Sub-Saharan African involvement announced M&A financial advisor league table during the first quarter of 2023.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance totalled US$276.2 million during the first quarter of 2023, a 44% decline compared to the same period in 2022.  Just one issue was recorded in the region, equalling first quarter 2021's deal count, the lowest first quarter tally in more than two decades. South African retail firm Pepkor Holdings was the only company in the region to raise new equity funds during the first quarter of 2023, with its follow-on offering raising US$276.2 million.  No initial public offerings or convertible bonds were recorded.  Morgan Stanley and Capitalmind Investec shared first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2023.

DEBT CAPITAL MARKETS

Overall Sub-Saharan African debt capital markets activity totalled US$3.8 billion during the first quarter of 2023, down 66% compared to first quarter 2022 and the weakest opening period for DCM activity in the region since 2016. A total of 13 new offerings were brought to market in the first quarter of 2023, a 41% decline compared to a year ago and a four-year low. Ivory Coast was the most active issuer nation during the first quarter of 2023, accounting for 65% of total bond proceeds, followed by South Africa (32%). Government & Agency issuers accounted for 65% of proceeds raised during first quarter 2023, while Industrials issuance accounts for 26%. JP Morgan took the top spot in the Sub-Saharan African bond bookrunner ranking during the first quarter of 2023, with US$831.5 million of related proceeds, or a 22% market share.