Financial Services Firms Stem African M&A Decline

African FDI inflows fell by 67% in Q109, as the global economic downturn cut demand for Africa's number one export: minerals. The figures mark a sharp change of fortunes for the continent, which had not only seen six consecutive years of uninterrupted growth in FDI inflows, but also record levels of cross-border M&A in 2008. In Q109 FDI inflows equalled US$3.42bn; down from US$10.41bn for the same period last year. At the half-year stage cumulative African M&A deal value was also down significantly from the previous year. As at June 30 net sales of African companies to foreign investors totalled US$3.32bn, compared with US$20.90bn for the 2008 full-year - according to data produced by the United Nations Conference On Trade And Development (UNCTAD) in its World Investment Report 2009. The UNCTAD report attributes the decline in M&A volume, on the continent, to "a lack of available credit and investors' current aversion to debt".

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