High Borrowing Costs Hinder Africa's Mergers and Acquisitions

High borrowing costs are threatening mergers and acquisitions across Africa, including Nigeria, despite a strong corporate appetite for expansion. Dalu Ajen, the Chief Executive Officer of Standard Chartered Bank Africa, stated that there is a need to rethink acquisition financing to unlock the next phase of corporate growth.

Speaking at a strategic roundtable during the Pan-African Forum in Kigali, Rwanda, Ajen warned that Africa risks missing a critical phase of industrial expansion unless financial institutions develop flexible and scalable funding solutions. The slowdown in mergers and acquisitions reflects a financial gap rather than a shortage of business ambition.

Data indicates that Africa's total deal value fell by 24% in the first nine months of 2025 compared to the same period in 2024, with transactions involving African companies declining nearly 46%. Ajen emphasized the importance of developing financial tools that align with the growth patterns of mid-sized firms and called for stronger partnerships between commercial banks and development finance institutions to improve acquisition financing.