Sub-Saharan Africa’s investment banking industry recorded a sharp decline in revenue in the first quarter of 2026 with total fees falling 32.8 percent year-on-year to $106.9 million, according to the latest data released by London Stock Exchange Group.
The decline marks the slowest start to the year for the region since 2021 and reflects a broader slowdown in deal-making activity across key markets.
The contraction was driven primarily by a steep drop in advisory revenues linked to mergers and acquisitions, as well as weaker syndicated lending activity during the period.
Advisory fees from completed M&A transactions fell 72.7 percent to $14.8 million, representing the lowest first-quarter total recorded in more than two decades.
The sharp decline underscores reduced deal closures and a more cautious investment environment as corporates and investors delay transactions amid global uncertainty and shifting capital flows.
Syndicated lending fees also weakened significantly, dropping 52.4 percent to $38.7 million, further weighing on overall investment banking income.
The decline suggests reduced appetite for large-scale financing arrangements across the region, particularly in an environment of elevated interest rates and tighter liquidity conditions.
However, the broader slowdown in fees was partially offset by stronger performance in capital markets activity. Debt capital markets underwriting fees rose 45.5 percent to $32.6 million, reaching a four-year high, as sovereigns and corporates increased borrowing through bond issuances.
The trend aligns with a surge in debt market activity across Sub-Saharan Africa, where governments have turned to capital markets to finance fiscal obligations and infrastructure projects.
Equity capital markets also recorded a notable recovery with underwriting fees climbing to $20.7 million, more than twenty times higher than the level recorded in the same period of 2025.
The increase reflects renewed activity in equity issuance, including landmark transactions that supported overall fee growth within the segment.
Despite these gains, the strength in capital markets was insufficient to offset the collapse in advisory and lending revenues, resulting in an overall decline in investment banking income for the quarter.
Geographically, South Africa remained the largest contributor to regional investment banking fees, accounting for 34.1 percent of total revenue generated during the period.
Ivory Coast followed with a 24.9 percent share, while Kenya accounted for 18.8 percent, reflecting increased deal activity and capital market transactions in these economies.
In terms of institutional performance, Standard Chartered emerged as the top fee earner in Sub-Saharan Africa during the quarter, generating $18.1 million in fees and capturing a 17.0 percent share of the total market.
The data highlights a shifting structure within the region’s investment banking landscape. While capital markets activity is showing signs of recovery, particularly in debt and equity issuance, traditional revenue drivers such as M&A advisory and syndicated lending are under pressure.
This divergence points to a more cautious investment climate, where financing needs persist but strategic deal-making remains subdued.
Analysts say the weak start to the year reflects both global and regional dynamics, including geopolitical uncertainty, tighter financial conditions and reduced cross-border investment flows.
The drop in advisory fees suggests that companies are prioritising balance sheet stability over expansion, while lenders remain selective in deploying capital.