The International Commodity Summit 2025 (ICS2025), South Africa’s inaugural event of its kind, is set to play a pivotal role in promoting mergers and acquisitions (M&A) within Africa, with a particular focus on the mining sector. Scheduled for July 14-17, the summit will provide a platform for investors and industry stakeholders to engage in meaningful discussions about M&A strategies, which are vital for driving economic development in South Africa and across the continent.
M&A activities are crucial for shaping Africa’s trading market, offering companies the opportunity to increase competitiveness and expand their global reach. According to PwC South Africa, M&A activity reached US$10 billion between June 2023 and June 2024, with 32 deals closed—an increase from the 24 deals in the previous year.
PwC’s 2024 SA Mine report reveals that South Africa’s mining sector saw deals valued at over $10 billion during the 12 months leading up to June, a significant rise from the $1.5 billion recorded in the previous period and surpassing the combined total of the past five years. The report notes that the increased M&A activity has been driven by factors reshaping the industry’s dynamics, including the demand for copper and other strategic minerals.
Recent studies have shown that the M&A landscape in Africa is expanding, fuelled by the continent’s abundant natural resources and its growing consumer market, which now exceeds one billion people. In the past year, South Africa led the region, accounting for 57% of M&A activities, with a total value of USD 12.2 billion. Uganda also emerged as a significant player, with major deals like Tullow Oil’s acquisition of exploration blocks valued at USD 2.9 billion. Meanwhile, Nigeria’s mining reform strategy, including the approval of the Nigerian Minerals & Mining Bill in April 2023, is poised to further boost M&A activity in the sector.
Despite these positive trends, Africa’s M&A environment faces challenges such as currency volatility and exchange controls, which complicate transactions and affect profitability. For instance, in Nigeria, foreign exchange shortages can delay profit repatriation, requiring companies to adopt hedging strategies. Similarly, Zimbabwe’s fluctuating currency and exchange controls pose unique challenges, encouraging investors to consider alternative financial solutions to manage risks.
While South Africa has long been a key player in the mining sector, the country faces an uncertain future due to recent geopolitical tensions. The ongoing conflict with the United States, sparked by South Africa’s Land Appropriation Act, could deter foreign investment and destabilise the sector, ultimately impacting production levels and economic stability.
ICS2025 aims to explore the complexities of Africa’s mining industry, fostering discussions that will promote the formation and stabilisation of M&As. The summit will feature a panel of industry experts discussing key topics such as valuation principles, the role of technology in M&A, and financial structures that optimise deal outcomes.
ICS2025 will also address risks in M&A, including currency fluctuations and regulatory hurdles that often arise in cross-border transactions. As the summit approaches, anticipation is building for an engaging exchange of ideas and strategies that could reshape the future of M&As in Africa. Stakeholders are encouraged to join this crucial dialogue, fostering connections that could lead to transformative business ventures across the continent.