Despite facing a frozen IPO market and reduced buyer attractiveness, local investors in Africa maintain optimism that M&A activity will eventually increase as companies seek liquidity.
In 2022, Africa experienced a decline in M&A exits, dropping to 29 from 44 in 2021, amid a significant decrease in venture capital investment.
Many companies have scaled down growth due to reduced capital availability; however, this could lead to more consolidations and M&A activity, as undercapitalized companies seek to leverage their value.
The African tech ecosystem's performance in terms of exits is a subject of debate, balancing the notion of underperformance against the significance of a few impactful exits given the sector's youth.
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