Video Insights: 2024 M&A Trend Projections in South Africa
In the latest installment of our Trends in Global M&A Video Series, Edmund Higenbottam, Managing Director of Verdant Capital – IMAP South Africa, looks at how the steepest increase in interest rates since the end of the gold standard era is causing big changes. These changes affect not only the Western world, but also emerging economies, creating macroeconomic headwinds – so who will thrive? Who will look for alternatives, and will there be opportunities in the market?
He also details the significant changes witnessed over the last 20 yeas in the Financial Services industry, including how financial businesses interact with their clients, with the introduction of mobile wallets and payments, etc. allowing companies to address lower income groups and small businesses, and be profitable. Which in turn has a wider, positive impact on the broader economy.
Similarly, the Energy industry has also seen similar transitions with technology key in solving the global challenges arising from the carbon transition, and solar power now available on a much smaller scale. Which has implications for the Utility sector, which has historically performed poorly in the region.
Focusing on M&A, he explains why PE exits will be driving activity this year, as institutional capital in finite life funds reach the end of their investment period and will be looking to exit.