World
African Companies Should Adopt Strategic M&A as Viable Exit Strategy—Basta
Impacted by global economic issues and geopolitical tensions, African companies have faced a challenging 12 months in terms of VC-backed activity. However, for any founders considering their best route to a profitable exit, one option has emerged as the obvious choice: acquisition.
This trend is highlighted by Pitchbook data evaluating the African VC ecosystem in Q1 2024, which revealed that of all the exits achieved across the period, each and everyone was secured via acquisition. In contrast, no public listing or buyout deals were completed.
According to Victor Basta, CEO and Founder of investment bank DAI Magister, African CEOs should understand the value of M&A as a path to a successful exit, ensuring they are bought (not sold) to maximise valuations.
Basta said: “VC funding has dipped over the past couple of years on the African continent, with growth-stage companies seeking continued expansion struggling to find willing investors. On the other hand, we’ve seen the African M&A sector evolve, largely driven by a host of large overseas companies looking to tap into a new market, diversify their client base and leverage innovations that will enhance their offerings.
“This shift is also a result of the growing maturity of Africa’s business lifecycle. Whereas a decade ago the scene was rife with startups at too nascent a level of development for acquirers to consider, now there are a host of growth stage companies that are attractive to buyers.
“Once African founders begin to appreciate the significant profits M&A exits can yield, they can then pursue a range of tactics that will help secure high valuations. All strategies are built on thorough and targeted preparation, keeping in sight the end goal of being bought, rather than sold.
“The first step is identifying the right buyers to approach, who must have both clear synergies and the financial capacity to meet the expected asking price. This means pinpointing the appropriate pool of buyers, displaying a deep understanding of their position within the value chain and demonstrating the incremental value a smaller target would bring to their strategy.
“A basic M&A prep template to then follow includes conducting a strategic review of the business, developing and evolving external positioning, refining corporate materials to reinforce key messages, stress-testing business plans and financial models to stand up to buyer due diligence, defining key value risks in a deal and engaging potential buyers in stages.
“The main disadvantage for African startups to overcome is a lack of visibility, with many buyers possessing only superficial knowledge of even sizeable African targets to acquire. Building awareness is the key to garnering the right kind of interest and making the most of acquisition as the continent’s most common form of exit.”
Basta concluded: “The statistics are already outlining M&A’s credentials as the pathway to a successful exit for African founders, but the market is still in an early phase in comparison to other regions. As more growth stage players emerge and overseas interest continues to build, expect to see companies that have devoted resources into cashing in on this opportunity secure the highest value exits.”
By Aduragbemi Omiyale
About $32 million has been put into the African Trade and Investment Development Insurance (ATIDI) by Germany through KfW Development Bank.
This funding package allows the European nation to become a D2-class shareholder of ATIDI, a status dedicated to Export Credit Agencies and Non-African Public Entities.
Of this amount, $18.4 million is funded from BMZ budget resources, with the remaining $13.6 million coming from KfW’s own resources. As such, it will assume the obligations and benefits related to its new shareholding status, including representation in ATIDI Governance and decision-making structures, and equally participating towards improving German trade and investments in Africa in alignment with the G20 Compact with Africa (CwA 2.0).
KfW’s subscription in ATIDI is the culmination of a dynamic partnership between the two organisations.
On behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ), KfW has supported several countries’ membership in ATIDI with over $100 million in financing, thus strengthening the organisation’s capital base and expanding its ability to mitigate risk and mobilise private investment across African markets.
The new equity participation adds a direct shareholding to this long‑standing cooperation.
KfW is the 13th Institutional shareholder in Africa’s premier development insurer, further strengthening the organisation’s capital base and its capacity to support trade and investment across the continent.
At the official signing of the subscription agreement in Nairobi, Kenya, a member of the executive board of KfW, Ms Christiane Laibach, said, “Our membership is executed on behalf of the Federal Republic of Germany. It is only the latest culmination of a successful cooperation that has enabled the ATIDI membership of several African states and has created innovative insurance solutions to attract foreign investment on the continent.”
The chief executive of ATIDI, Mr Manuel Moses, said, “This milestone is iconic in many ways. First, it elevates our already dynamic bond with KfW and creates more opportunities for German investors looking to engage in Africa. It is also a recognition of ATIDI’s earned status as Africa’s top development insurer and the acknowledgement of the soundness of our business. Last, it underscores the power of partnerships in a global context increasingly marked by volatility and uncertainty. ATIDI will spare no effort to make this partnership a successful one.”
Established in 1948, KfW is Germany’s state-owned promotional and development bank and a key implementing partner of BMZ in international financial cooperation. Its shareholding in ATIDI is expected to stimulate up to $500 million in trade and investment between German companies and African markets.
Over the past 25 years, ATIDI has grown to become Africa’s premier provider of development insurance and one of its highest-rated financial organisations. It leverages its partnerships with leading multilaterals and regional bodies, including the African Union, the World Bank Group, COMESA, the European Investment Bank (EIB), and the Norwegian Agency for Development Cooperation (NORAD), to offer innovative credit and investment insurance products that foster sustainable and transformational growth across the continent.
By Modupe Gbadeyanka
The Netherlands’ largest energy provider, Essent, has cut the technology costs of its contact centre infrastructure by half.
The organisation, which serves 2.5 million customers, recorded zero critical incidents post-migration and improved agent workplace satisfaction by 36 per cent.
The migration was delivered in partnership with AI-first customer experience transformation specialists, Sabio Group, and was completed in under 12 weeks for an operation spanning over 1,000 agents across two locations.
Agents were forced to juggle multiple disconnected screens simultaneously — a workflow that was as inefficient as it was stressful.
“Our agents were constantly working with different screens — multiple chat instances open at once, multiple agent desktop instances. It was messy, and in some cases, quite stressful,” SAFe Product Manager for Customer Interaction, Omnichannel and Digital Transformation at Essent, Michiel Kouijzer, stated.
“A lot of colleagues were saying I was mad for even suggesting this approach. It kind of feels like a victory on a personal level that it did work out. You just have to be a little ambitious — and have the right expert partner who can make it work,” Kouijzer added.
With stable cloud infrastructure now firmly in place, Essent is turning its attention to the capabilities that were impossible in its legacy environment: AI-powered call summarisation, agentic customer self-service, and next-generation workforce optimisation.
Rather than a reckless ‘big bang’ cutover that could have affected service to millions of households, Sabio engineered a phased migration strategy — beginning with Essent’s SME segment to validate technical readiness before scaling to the full enterprise operation.
“This project showcases Sabio’s unique position in the contact centre technology landscape. We’re not just moving Essent to the cloud — we’re establishing a foundation for continuous improvement in their customer experience delivery,” the Country Manager for Sabio Group Benelux, Wouter Bakker, commented.
By Kestér Kenn Klomegâh
On April 11, the presentation of the book “Africa: a new market for Russian business” took place, which aroused lively diverse interests among business representatives, entrepreneurs and employees of federal structures of Russia. The event was dedicated to discussing the prospects of Russian companies entering the African market and became a platform for the exchange of views and experiences.
Participating guests, packed in the small hall, included:
– representatives of business circles,
– entrepreneurs interested in new directions of development,
– employees of federal agencies curating foreign economic activity.
The presentation was held in a constructive and friendly atmosphere. The author of the book, Serge Fokas Odunlami, detailed the key ideas and conclusions presented in the publication. Particular attention was paid to the practical aspects of operating in the African market, as well as the analysis of opportunities and risks for Russian companies.
During the lively discussion, participants asked questions, shared their experiences and made suggestions for developing cooperation with African countries. This format allowed not only to get acquainted with the content of the book, but also to discuss topical issues of expanding business relations.
Meaning of the book: The publication, “Africa: a new market for Russian business” offers readers not only analytical, but also practical recommendations on investment and market trends, and how to enter the African market. The book will be a useful tool for those considering Africa as a promising destination for investment and business development.
The presentation of the book became a significant event for the Russian business community interested in expanding cooperation with Africa. Serge Fokas Odunlami introduced the participants to the new edition, which is a comprehensive business guide that gives an impetus for dialogue and implementation of joint entrepreneurial projects and corporate initiatives across Africa.
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