Deal momentum in Africa will remain largely stable in 2026, with an increased focus on infrastructure development, securing critical minerals, and ensuring food security, according to the world's biggest insurance brokerage, Marsh, in its "Transactional risk insurance - 2025" report.
Infrastructure is viewed as a key driver for further capital flow, and with Africa’s focus on infrastructure development, M&A in the region is expected to grow.
Throughout most of 2025, though, macroeconomic challenges significantly contributed to a decline in African deal activity, ultimately leading to transactions being put on hold amid uncertainty. Specifically for South Africa, average deal values ranged between $6m and $122m.
Despite the turbulent landscape, interest in transactional risk solutions remained strong, with Marsh receiving more than 30 inquiries in Africa alone, doubling the 15 inquiries recorded in 2024.
For dealmakers, W&I insurance has become a trusted tool for greater liability protection, particularly among corporates, which have driven deal activity, although private equity funds continue to play a central role.
South Africa dominates the growing W&I market
The South African M&A market accounts for roughly 70% of W&I policies placed.
Africa as a whole is emerging as a significant M&A player with Marsh‘s transactional risk team advising on W&I placements across Nigeria, Uganda, Cote d’Ivoire and Botswana. The number of insurers willing to consider African submissions has also grown from around 10 to 17, reflecting increased market activity and greater familiarity with the W&I product.
Seller-initiated processes and cost-effective insurance drove market growth
Seller-initiated processes remained prominent in 2025, despite 99.9% of the policies being buy-side. The low cost of W&I insurance also continued to encourage more deals to be insured.
Consumer, FinTech, and infrastructure-led strategic investments
South Africa’s consumer and FinTech sector has been particularly active, reflecting a broader shift toward digitisation. While overall deal volumes declined, high-value strategic investments, especially in digital infrastructure, remained strong.