TMT SECTOR IN AFRICA HAS BIG GROWTH PROSPECTS

THE TECHNOLOGY, media and telecoms (TMT) sector in Africa is expected to show impressive growth in 2019, with transactions forecast to exceed earlier predictions of mergers and acquisition (M&A) investments worth $5.9 billion (R84.83bn) in 2019, according to Baker McKenzie’s Global Transaction Forecast in association with Oxford Economics. Janet MacKenzie, a partner in the Corporate/M&A Practice and the head of the TMT industry group at Baker McKenzie in Johannesburg, said Africa was considered to be a region of significant investment potential in the tech space. “Increasingly, M&A deals and IPOs (initial public offerings) in the TMT sector in Africa point to the growing reliance of African consumers on technology across multiple platforms. The unabated demand for technology has caused extensive cross-sector disruption in Africa, with, for example, the financial, energy, transport, retail, health and agricultural sectors all seeking opportunities to expand their tech infrastructure in order to acquire the necessary skills and innovation needed to keep up with demand,” she said. “In 2019, fintech will likely remain the most popular tech sector for investment in Africa, with health-tech, mobility and agritech also attracting investment. Tech companies in South Africa, Nigeria and Kenya are expected to secure the biggest funding deals of the year in 2019,” said MacKenzie.

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