PwC: Egypt’s M&A landscape is showing signs of recovery

Egypt’s mergers & acquisitions landscape is showing signs of recovery, according to analysis by PwC. Maye Ayoub, a Cairo-based partner in the firm’s Deals practice, walks through the latest developments in the M&A scene, and pinpoints the sectors and domains which are catching most of the action.

After a challenging couple of years, the Egyptian M&A landscape seems to be showing resilience, recording a 21% year-on-year increase in mergers & acquisition deals in H1 2024. Key sectors such as financial services and consumer goods are driving investment, supported by strategic reforms in currency and tax policies.

The Middle East and North Africa’s most populous country had a turbulent couple of years, with its economic troubles worsening in 2022 due to the outbreak of war in Ukraine; meanwhile, regional geo-political conflicts have further intensified economic pressures. The Egyptian pound nearly halved in value over 2022-2023. This, combined with post-Covid-19 inflation, pushed up the cost of imports, resulting in high inflation.

The situation now looks to have improved. This has largely been driven by a $35 billion investment from the UAE, which enabled key reforms – particularly around currency – and helped reduce inflation. Additional support from the International Monetary Fund (IMF), World Bank, and European Union (EU) also helped avert a potential crisis. Collectively, these developments have paved the way for more opportunities for deals.

Notable recent deals

As reported in PwC’s latest M&A report, deals in the Middle East in the first half of 2024 stood at 214 – a 4% decline from H1 2023, compared to a 25% drop globally. This underscores the Middle East's ongoing resilience, standing out against other regions despite shared macroeconomic challenges and complex geopolitical factors.