Africa Capital Markets Watch 2018

Our latest look at capital market activities during 2018 and the five-year period 2014-2018.

While 2018 started with several landmark IPOs and FOs, as the year progressed, companies retreated from the capital markets or suspended listing plans as uncertainty and volatility increased across Africa and the globe.


Welcome to PwC’s Africa Capital Markets Watch 2018, our fourth annual publication examining both African debt capital markets (DCM) and equity capital markets (ECM) transactions, and fifth annual publication on ECM transactions.

ECM transactions included in our report comprise capital raising activities, whether initial public offerings (IPOs) or further offers (FOs), by African companies on exchanges worldwide and those made by non-African companies on African exchanges.

DCM transactions analysed include non-local currency debt funding raised by African companies and public institutions, whether high-yield or investment grade.


Woman reading the 2018 Africa Capital Markets Watch publication on her phone

African capital markets activity declines in 2018 despite landmark transactions

The positive trend recorded in 2017 in overall ECM activity, in terms of increase in volume and value, was not sustained in 2018 despite strong market indications at the beginning of the year.

African ECM activity in 2018 declined year-on-year both in volume and value by 25% and 40% respectively. However, the year saw some landmark transactions such as the $819.3 million May 2018 dual listing of Vivo Energy Plc on the JSE and LSE, the largest Africa-focused IPO on the LSE since 2005, and the second largest IPO in Africa in the past five years in terms of proceeds raised.

ECM activity, 2014-2018

ECM activity, 2014-2018

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Unbundlings, acquisitions and regulatory changes driving market activity in the financials sector

The financials sector continued to contribute significantly to overall ECM activity in 2018 with some significant IPOs and FOs across the continent, primarily driven by the unbundling of large financial services groups and increased capital requirements.

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Rise in green bond issuances

The past few years have seen an increased focus on private sector initiatives to address sustainability and climate change through investments and financing, including the use of innovative products such as green bonds, the proceeds of which are required to be deployed into environmentally-friendly initiatives.


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Andrew Del Boccio

Partner, PwC South Africa

Tel: +27 (0) 11 287 0827

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