Thomson Reuters releases 2018 Sub-Saharan Africa Investment Banking Review


Thomson Reuters, a global source of intelligent information for businesses and professionals recently released the Investment Banking Sub-Saharan Africa (SSA) region review for the first half of 2018.

“The most notable feature of the Sub-Saharan Africa Investment Banking fees verified in the first half of 2018 is that investment banking fees were 12% less than the value recorded in the first half of 2017. This year, they only reached an estimated US$241 million,” said Sneha Shah, Thomson Reuters Managing Director for Africa.

“Fees from completed Mergers and Acquisitions (M&A) transactions totaled US$33.7 million, a 60% decrease year-on-year and the lowest first half since 2005. On the other hand, Equity Capital Markets (ECM) underwriting fees reached US$71.2 million, the highest value since 2007,” adds Shah.

Rand Merchant Bank (RMB) continues to lead the chart on most investment banking fees received this year in SSA with a total of US$27.4 million or a 11.4% total fee pool. RMB also leads completed M&A and Syndicated Loans fee rankings in H2 2018.

Standard Bank, also known as Stanbic, leads the Equity Capital Markets (ECM) underwriting fee ranking with a 25.1% share of the market and CITI leads the Debt Capital Markets (DCM) underwriting fee ranking with a 15.7% market share.

In comparison, the total Sub-Saharan Africa fees from DCM underwriting fees accounted for 27% of the overall SSA investment banking fee pool, the highest since 2003. Completed M&A and ECM generated 14% and 30% of the total fee pool, respectively, and Syndicated Lending fees accounted for 30%.

Two of the top three largest M&A deals in the first half of 2018 took place in Nigeria with the largest being Milost Global Inc $1.1 billion leveraged buyout transaction to acquire the entire share capital of Primewaterview Holdings Nigeria Ltd.

South Africa’s overseas acquisitions accounted for 74.9% of SSA outbound M&A activity, while acquisitions by companies headquartered in Mauritius and Zimbabwe accounted for 21.9% and 2.5% respectively.

The Ivory Coast continued to be the most active issuer nation in bond proceeds at US$6.3 billion or 26.7% of market activity, followed by South Africa and Angola.


About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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