Market Insights Financial Corporate Finance

Investment Banking - Western Africa

Western Africa

The revenue in the Investment Banking market is projected to reach US$2.01bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.07% resulting in a projected total amount of US$2.12bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Investment Banking market in Western Africa is witnessing a steady growth trajectory driven by various factors.

Customer preferences: Customers in Western Africa are increasingly seeking personalized investment banking services tailored to their specific needs. They value transparency, reliability, and expertise when choosing financial institutions to handle their investments.

Trends in the market: In Nigeria, one of the largest economies in the region, there is a noticeable trend towards digitalization in the investment banking sector. Fintech companies are gaining traction, offering innovative solutions and disrupting traditional banking services. This trend is driven by the growing tech-savvy population and the need for more convenient and accessible financial services.

Local special circumstances: Ghana, another key market in Western Africa, is experiencing a surge in mergers and acquisitions in various industries. This trend is boosting the demand for investment banking services to facilitate these transactions. Additionally, the government's efforts to improve the regulatory environment and attract foreign investment are creating opportunities for investment banks to expand their operations in the country.

Underlying macroeconomic factors: The overall economic stability and growth in Western Africa are attracting foreign investors looking for high returns. As a result, investment banks in the region are seeing an influx of foreign capital, which is driving expansion and innovation in the industry. Additionally, the increasing integration of regional economies through initiatives like the African Continental Free Trade Area (AfCFTA) is creating a more conducive environment for investment banking activities across borders.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.