Economy
Africa Records Zero IPOs in H1 2021
A new report has revealed that in the first half of 2021, African exchanges did not record any cross-border Initial Public Offerings (IPOs).
However, the continued global demand for special purpose acquisition company (SPAC) IPOs reached African shores in the period under review, with a cross-border listing from a South African SPAC issuer, African Gold Acquisition Corporation, into the New York Stock Exchange.
In the new Baker McKenzie analysis, H1 IPO Snapshot: Unfolding Trends for 2021, it was noted that globally, the continued demand for SPAC deals, as well as current high liquidity and investor enthusiasm, caused capital raising to surge to new highs in H1 of 2021, with the bulk of companies preferring to list their IPOs locally.
A total of 1,263 deals valued at $294 billion are expected to be completed by June 30, 2021, with domestic IPOs accounting for 77 per cent of all listings during this time.
Commenting on the lack of cross-border IPOs as a form of capital raising in Africa, the Head of Africa at Baker McKenzie, Mr Wildu du Plessis, explained that, “Issuers and investors in Africa are waiting for economic and legal certainty and effective regulation to be implemented, combined with the need for deeper liquidity before they go ahead with capital raising in the continent.
“It is also worth noting that the region tends to lag the global pattern by a few cycles, so we could see a similar rising demand for African IPOs in future years, possibly boosted by the launch of the African Continental Free Trade Area at the beginning of this year.”
Regarding the SPAC listing by African Gold Acquisition Corporation, Mr Du Plessis explained that SPACs are formed to raise capital through IPOs, with the capital raised then used to acquire existing companies (or invest in existing businesses) the identities of which are not disclosed or even known at the time of the IPO.
Even though some indication is given at the time of the IPO as to which industries will be targeted, investors in these SPACs are essentially asked to invest in a somewhat uncertain future.
The African Gold Acquisition Corporation has noted it could potentially target any industry, but it will mainly focus on target companies with operations in the gold mining sector.
African investors and issuers with interests in the mining sector in Africa will be watching this SPAC closely, with the possibility that this could ignite a growing trend for this type of capital raising in Africa down the line.
Mr Du Plessis explained that while cross-border IPOs are currently not used as a way to raise capital on the continent, the next few years could possibly see increased capital raising activity for companies in industries particularly hard hit during COVID-19, including hospitality and transportation.
The technology sector is also expected to dovetail into life sciences, and this could result in a move towards capital raising via IPOs for technology companies with operations in Africa. New and innovative technologies (particularly among biotech, fintech, edtech, software AI and health tech) continue to emerge at an unprecedented pace, expedited by COVID-19 and the need to digitally innovate business operations to survive in a virtual environment could boost regional capital raising transactions.
“Further, no matter where businesses are in the world or what industry they operate in, Environmental Social and Governance (ESG) has become one of the hottest topics for businesses, their boards, their customers and their employees.
“While in previous years, some viewed the inclusion of ESG elements to be at the expense of returns and efficiency, among other things, this has rightly shifted to viewing ESG strategy as a prerequisite to business success. ESG is fast becoming an essential element for successful transactions in Africa,” Mr Du Plessis said.
Top exchanges
The Nasdaq and the NYSE were the top exchange destinations in H1 2021, raising over $160 billion across 519 IPOs. Over 80 per cent of IPO issuers were US-based.
Continued growth in Mainland China domestic listings bolstered the performance of the Shenzhen and Shanghai exchanges. Other strong performers included the ASX, TSX (mainboard, TSXV and NEX Board), Japan Exchange Group, KRX and HKEx (mainboard and GEM).
Euronext Amsterdam was boosted by two cross-border megadeals, worth over USD 1 billion each, bringing capital raising for Euronext to over USD 4 billion for the first time since 2018.
Top industries
The financial sector led in terms of value (USD 124 billion raised) and volume (455 deals), most notably due to the number of SPAC IPOs, with over 350 SPACs going public to raise $103 billion. Technology and Healthcare came in second and third in the rankings for both value and volume, as the COVID-19 pandemic helped to drive investments into these sectors, particularly in China.
Other Trends
In addition to the rise in SPACs in the US, other regions may also be moving to attract SPAC activity. In London, Lord Hill’s review of the UK’s listing regime was published in an effort to help the LSE gain a more competitive edge against other exchanges post-Brexit.
One recommendation is to remove the automatic suspension of SPACs. Euronext, Hong Kong and Singapore are also exploring SPACs due to investor demand.
In the US, headwinds are building for SPACs. The US capital markets landscape is expected to shift in the coming months, due to the new US administration and SEC chair.
Various regulatory and disclosure changes are considered likely, including an increased focus on ESG reporting requirements (including DEI disclosures), closer scrutiny of SPACs and more enforcement proceedings by the SEC.
By Adedapo Adesanya
Nigeria’s economy, measured by gross domestic product (GDP), grew by 4.07 per cent (year-on-year) in real terms in the fourth quarter (Q4) of 2025.
The National Bureau of Statistics (NBS) announced the development in its latest GDP report for Q4 2025 on Friday.
The latest figure represents an improvement over the 3.76 per cent growth recorded in the corresponding period of 2024, signalling sustained recovery across key sectors of the economy. The growth rate was faster than the third quarter’s 3.98 per cent.
The report confirmed that Nigeria’s oil sector grew 6.79 per cent year-on-year and the non-oil part of the economy expanded by 3.99 per cent.
Nigeria’s average daily oil production stood at 1.58 million barrels per day in the final three months of 2025. That was lower than the third quarter’s output of 1.64 million barrels per day but higher than the 1.54 million barrels per day in the fourth quarter of 2024.
Breakdown of the data showed that the agriculture sector grew by 4.00 per cent in the fourth quarter of 2025. This marks a significant increase compared to the 2.54 per cent growth recorded in the same quarter of 2024, reflecting improved output and resilience in the sector.
The industry sector also recorded a stronger performance during the period under review. It grew by 3.88 per cent year-on-year, up from 2.49 per cent posted in the fourth quarter of 2024. The improvement suggests enhanced activity in manufacturing, construction, and related industrial sub-sectors.
The services sector maintained its position as a major growth driver, expanding by 4.15 per cent in Q4 2025. However, this was slightly lower than the 4.75 per cent growth recorded in the corresponding quarter of the previous year.
Overall, the 4.07 per cent GDP growth in the final quarter of 2025 underscores broad-based expansion across agriculture, industry, and services, despite a marginal moderation in services growth.
The Q4 performance provides further evidence of strengthening economic momentum, with improvements recorded in both agriculture and industry compared to the previous year.
By Modupe Gbadeyanka
For the second time, Flour Mills of Nigeria Plc is sponsoring the Paris International Agricultural Show (PIAS) as part of its strategies to fortify its ties with France.
The 2026 PIAS kicked off on February 21 and will end on March 1, with about 607,503 visitors, nearly 4,000 animals, and over 1,000 exhibitors in attendance last year, and this year’s programme has already shown signs of being bigger and better.
The theme for this year’s event is Generations Solution. It is to foster knowledge transfer from younger generations and structure processes through which knowledge can be harnessed to drive technological advancement within the global agricultural sector.
In his address on the inaugural day of the Nigerian Pavilion on February 23, the Managing Director for FMN Agro and Director of Strategic Engagement/Stakeholder Relations, Mr Sadiq Usman, said, “At FMN, our mission is Feeding and Enriching Lives Every Day.
“This is a mandate we have fulfilled through decades of economic shifts, rooted in a culture of deep resilience and constant innovation. We support this pavilion because FMN recognises that the next frontier of global Agribusiness lies in high-level technical exchange.
“We thank the France-Nigeria Business Council (FNBC), the organisers of the PIAS, and our fellow members of the Nigerian Pavilion – Dangote, BUA, Zenith, Access, and our partners at Creativo El Matador and Soilless Farm Lab— we are exceedingly pleased to work to showcase the true face of Nigerian commerce.”
Speaking on the invaluable nature of the relationship between Nigeria and France, and the FMN’s commitment to process and product innovation, Mr John G. Coumantaros, stated, “The France – Nigeria relationship is a valuable partnership built on a shared value agenda that fosters remarkable Intercontinental trade growth.
“Also, as an organisation with over six decades of transformational footprint in Nigeria and progressively across the African Continent, FMN has been unwaveringly committed to product and process innovation.
“Therefore, our continuous partnership with France for the success of the Paris International Agricultural Show further buttresses the thriving relationship between both countries.”
PIAS is one of the most widely attended agricultural shows, with thousands of people from across the world in attendance.
By Adedapo Adesanya
Despite reservations from some quarters, the Nigeria Extractive Industries Transparency Initiative (NEITI) has praised President Bola Tinubu’s Executive Order 9, which mandates direct remittances of all government revenues from tax oil, profit oil, profit gas, and royalty oil under Production Sharing Contracts, profit sharing, and risk service contracts straight to the Federation Account.
Issued on February 13, 2026, the order aims to safeguard oil and gas revenues, curb wasteful spending, and eliminate leakages by requiring operators to pay all entitlements directly into the federation account.
NEITI executive secretary, Musa Sarkin Adar, called it “a bold step in ongoing fiscal reforms to improve financial transparency, strengthen accountability, and mobilise resources for citizens’ development,” noting that the directive aligns with Section 162 of Nigeria’s Constitution.
He noted that for 20 years, NEITI has pushed for all government revenues to flow into the Federation Account transparently, calling the move a win.
For instance, in its 2017 report titled Unremitted Funds, Economic Recovery and Oil Sector Reform, NEITI revealed that over $20 billion in due remittances had not reached the government, fueling fiscal woes and prompting high-level reforms.
Mr Adar described the order as a key milestone in Nigeria’s EITI implementation and urged amendments to align it with these reforms.
He affirmed NEITI’s role in the Petroleum Industry Act (PIA) and pledged close collaboration with stakeholders, anti-corruption bodies, and partners to sustain transparent management of Nigeria’s mineral resources.
Meanwhile, others like the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have kicked against the order, saying it poses a serious threat to the stability of the oil and gas industry, calling it a “direct attack” on the PIA.
Speaking at the union’s National Executive Council (NEC) meeting in Abuja on Tuesday, PENGASSAN President, Mr Festus Osifo, said provisions of the order, particularly the directive to remit 30 per cent of profit oil from Production Sharing Contracts (PSCs) directly to the Federation Account, could destabilise operations at the Nigerian National Petroleum Company (NNPC) Limited.
Mr Osifo firmly dispelled rumours of imminent protests by the union, despite widespread claims that the controversial executive order threatens the livelihoods of 10,000 senior staff workers at NNPC.
He noted, however, that the union had begun engagements with government officials, including the Presidential Implementation Committee, and expressed optimism that common ground would be reached.
Mr Osifo, who also serves as President of the Trade Union Congress (TUC), expressed concerns that diverting the 30 per cent profit oil allocation to the Federation Account Allocation Committee (FAAC), without clearly defining how the statutory management fee would be refunded to NNPC, could affect the salaries of hundreds of PENGASSAN members.
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