Survival or strategy? More CEOs set eyes on mergers, acquisitions
Business
By
Graham Kajilwa
| Nov 06, 2025
The number of chief executives eyeing mergers and acquisitions has increased in the latest KPMG Africa CEO Outlook report, which raises questions of whether it is just a strategy or the lone survival option for businesses in the current economic conditions.
The report by the audit and tax advisory firm shows that this year alone, 86 per cent of African CEOs have lined up plans for acquisition within the next three years. This is up from 77 per cent in 2024. Perhaps, this view, could also be explained by the muted positive change in how the CEOs perceive growth in their respective industries and countries.
According to the report, confidence in growth prospects for their country stood at 63 per cent in the latest edition compared to 61 per cent in 2024. This is while confidence in growth prospects for their respective industries dropped to 74 per cent from 75 per cent in 2024.
But when it comes to their respective companies, more CEOs had optimism at 79 per cent compared to 64 per cent in 2024.
“The increase signals renewed assurance among African business leaders in their ability to drive performance and adapt to evolving market conditions. Confidence at this level is now almost at par with global sentiment, where 79 per cent of the global CEOs express confidence in their companies’ outlook,” the report says.
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This confidence, the report says, is spilling over to the CEOs’ appetite for acquisitions citing that 86 per cent of them revealed they are making or likely to make acquisitions within the next three years. “This increase points to a stronger appetite for partnerships and expansion as businesses seek scale and capability,” the report says.
But Matthew Mukisu, the Director of Corporate Services at Capital Markets Authority (CMA), has contrary opinion. He points out that this could be a sign of businesses struggling to survive.
“When you come together, through economies of scale, you also manage your risk through portfolio diversification,” said Mukisu, who was part of a panel discussion at the launch of the report.
“Even some of the traditional licensees, let’s say they are in online forex, once they are there, they come with something else where we do not have a regulation,” he said.
He added: “We have a regulatory sandbox where innovators come and test ideas, then we see how to regulate them, or we point you to somebody else. And if you are already running with it, we can issue some guidance notes as we see what kind of law we need to come up with.”
Gerald Kasimu, Head of Advisory at KPMG Africa said the appetite for mergers and acquisition has been witnessed particularly in the financial services sector with banks. A few days ago, KCB Group acquired a stake in payment services firm Pesapal.
“There is also focus on fast moving consumer goods (FMCG), healthcare,” he said.
Kasimu said many partnerships or joint ventures with financial technology companies are not just about extending or scaling the operations of existing business but also grow beyond what they have traditionally been known for.