The value of announced merger and acquisition (M&A) transactions involving sub-Saharan African targets contracted marginally to $28-billion in 2014, the latest Thomson Reuters investment banking analysis for the region showed.

The most targeted nation for M&A deals on the continent was South Africa, which accounted for more than half of the value of the transactions at $14.5-billion.

Nigeria followe, attracting 20.9% of the total transactional value, or $5.8-billion, while Mozambique, Mauritius and Togo secured 4.3%, 4.1% and 3.7% respectively of the M&A activity by value.

South Africa was also the most active buyer in the region, spending $11.8-billion – or 42.2% – of the total value of the acquisitions last year.

Nigeria had also emerged as one of the more acquisitive nations, spending $4-billion, or 14.3%, on the continent during the period, while the UK, US and France injected 7%, 5% and 4.5% respectively of the spend in sub-Saharan Africa during the year.

The M&A activity included Steinhoff International’s buy-out of South African clothing retailer Pepkor for $5.6-billion in November 2014 – the largest deal in the region since Bharti Airtel’s $10.7-billion acquisition of Zain’s African assets in 2010.

The deal, which saw Steinhoff acquire a 52.5% stake from Titan Premier Investments and a 39.9% stake from Brait Mauritius, led to the retail sector becoming the most active sector during 2014, accounting for 21% of M&A activity, Thomson Reuters pointed out.

Meanwhile, the report showed that equity and equity-linked issuance in sub-Saharan Africa nearly doubled to $6.7-billion in 2014 – the highest yearly total since 2007.

Thomson Reuters stated that the proceeds raised from follow-on offerings accounted for 69% of equity capital markets (ECM) activity, while initial public offerings and equity-linked issuance accounted for 19% and 12% respectively.

Around 85% of deals involved a South African issuer.

The financial sector was the most active sector for equity issuance in the region, followed by the retail sector.