Tanzania second in East Africa mergers and acquisitions

Dar es Salaam. Tanzania recorded merger and acquisition deals worth $284.9 million last year, according to a new report.

The deals, sealed in 12 transactions, put Tanzania second behind Kenya in East Africa.

The joint venture between Tanzanian firm Taifa Gas and Delta Marimba – a liquified petroleum gas (LPG) plant in northern Zambia valued at $100 million (Sh13.2 billion) – was among Tanzania’s top deals for 2023, DealMakers Africa magazine said in the report.

Kenya recorded merger and acquisition deals worth $600.3 million to lead its East African peers.

Kenya was ranked second in 2022 when it witnessed larger deal values of $1.12 billion to trail Sudan, which topped the charts with $1.41 billion worth of transactions. Sudan subsequently dropped out of the top ranking in 2023 when its civil war intensified.

Last year, Kenya had 95 deals, including the sale of James Finlay Kenya’s tea farms to Sri Lanka’s LOLC Holdings which was valued at $23.6 million, according to DealMakers Africa magazine.

Others were the sale of a 31.25 percent stake in Lake Turkana Wind Power by Finnfund to asset manager BlackRock for an undisclosed sum.

Uganda was third with $245.5 million worth of deals spread across 14 transactions.

Ethiopia followed with 10 deals valued cumulatively $181.7 million.

“East Africa edged its way back to the top to claim the most activity per region, recording 144 deals, followed by West Africa (136 deals) and North Africa (107 deals),” DealMakers Africa said.

“The powerhouses of their regions, Kenya and Nigeria recorded the most deals at 95 and 82 respectively.”

Ugandan conglomerate Sarrai Group and investment firm Rwimi Holdings’ acquisition of Hima Cement for $120 million cemented the country’s top deal.

The parties signed a deal to buy Hima Cement from its two shareholders – Cementia Holding and Kenya’s Bamburi Cement.

Other countries in the region that witnessed M&A activity were Eritrea with one major deal worth $166 million and Rwanda which had nine transactions valued at $116.6 million. Djibouti had a single transaction worth $7.5 million while Seychelles and Somalia had a single deal each of undisclosed value.