Bank of America bets on SA deal-making despite global headwinds

Bank of America Corporation expects strong deal-making activity in South Africa to continue in this year despite ongoing global volatility, the head of its local operation said.

The lender is concluding transactions in the technology, telecommunications, digital, retail and infrastructure sectors in the continent’s largest economy and elsewhere in the region, as its longer-term investment case remains attractive to local and global investors, Anthony Knox said.

“South Africa has excellent, well-run companies, with management teams able to operate very effectively in uncertain and volatile environments​, and valuations that remain attractive relative to many international markets,” he said.

“Strategic activity continues to move forward in sectors where investors see long-term growth and financing visibility, with Africa and South Africa remaining an attractive place to invest.”

Bank of America most recently advised on top African mobile-network operator MTN in its buyout of a remaining stake in IHS Holding Ltd.

It also completed a transaction where Stanlib bought part of billionaire Strive Masiyiwa’s African Data Centres earlier in the year.

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It is advising on Diageo plc’s sale of its stake in East African Breweries plc to Japanese buyer Asahi Group Holdings plc for $2.3 billion.

Africa is home to the fastest-growing and youngest population globally, with citizens increasingly turning to technology to meet their needs for services such as banking, shopping and entertainment, bridging the gaps in limited physical infrastructure.

“Over time, growing digital demand across Africa will require continued investment in local data infrastructure, connectivity and technology capacity, and we are already seeing momentum build in parts of that ecosystem,” Knox said.

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The continent is the birthplace of mobile money, and its digital payments and fintech platforms have also expanded rapidly, with large platforms such as TymeBank and Airtel Money saying they will explore future public-market options.

Fintech revenues are expected to reach more than $65 billion by 2030, representing a more than sixfold increase from current levels, according to Boston Consulting Group.

There could be a pause in the timing of initial public offerings as companies await more market stability, Knox said.

“In periods of uncertainty it can become harder to price and raise capital efficiently, particularly for IPO activity,” he said.

Despite this, the bank has managed to raise large debt rounds and equity for companies in 2026.

It arranged $1.5 billion in debt for Sasol, Sibanye Stillwater and Absa Group, and another R3 billion in equity for Vukile Property Fund’s expansion plans in Italy, he said.

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