by Nurat Uthman
KPMG says the top destinations for future investments in the next two years in sub-Saharan Africa (SSA) are Nigeria, South Africa, and Kenya.
In its report titled ‘Doing deals in sub-Saharan Africa 2024,’ KPMG conducted a survey among international and domestic investors.
KPMG said more developed African nations are likely to benefit when it comes to the location of future deals.
“The top destinations for investment in the next two years are South Africa (28%) and Nigeria (26%), the report reads.
“These economic powerhouses were followed, at some distance, by Kenya (14%). No other country was mentioned by more than one-in-ten respondents overall.
“The dominance of these countries in the M&A landscape reinforces the importance of both economic and resource fundamentals.”
According to KPMG, South Africa’s economy has been hit by power shortages and logistics bottlenecks.
However, the report noted that South Africa’s offer of abundant resources, a developed financial market, and an enormous youthful population “remains a prime draw for investors”.
“Similarly, Nigeria has SSA’s largest population, the region’s second-largest economy, and remains a substantial hydrocarbons producer,” the report reads.
“The lure of the regions’ two largest economies ties in with investors’ motivations for future transactions.”
