Rand Merchant Bank: Vigilant O
Rob Lyon, co-head of investment banking at Rand Merchant Bank, which won the Best Investment Bank in Africa award, explains Africa’s opportunities to become a global investment hub.
Global Finance: What does the African deal-making landscape look like, and how do you see it evolving?
Rob Lyon: Africa’s deal-making landscape is marked by cautious optimism. Despite geopolitical uncertainty and global economic headwinds, investment opportunities are growing in key sectors, of which infrastructure is central. Interest in natural resources – particularly critical minerals needed for clean energy – is also growing, and private equity and venture capitalists are becoming increasingly active. In particular, reforms in many countries are improving investor confidence. Egypt, Morocco, South Africa, Kenya and Nigeria dominate due to their large consumer bases, diversified economies and pace of reform.
In the coming years, deal activity is expected to be deeply driven by regional integration, policy reforms and demographic dividend. The African Continental Free Trade Area (AfCFTA) will open up cross-border opportunities, making pan-African mergers and acquisitions more viable.
In the short term, we expect moderate growth in deal volume led by the energy and digital sectors. In the medium term, AfCFTA will reduce trade barriers and harmonize regulation, creating conditions for larger cross-border deals. After 2030, Africa could emerge as a global investment hub if political stability and regulatory coherence are maintained.
GF: What has made RMB a top investment bank, and how important are the broader Africa markets?
Leon: Our diversified portfolio, combined with a disciplined approach to balancing risk, return and growth, has enabled RMB to deliver consistent returns in a very competitive market. Furthermore, we differentiate ourselves through our collaborative, customer-centric and entrepreneurial approach.
Greater Africa is central to our development strategy. RMB also has an international presence with deals in 35 countries. That network matters because many of our clients are regionally or internationally connected businesses that require capital, risk management and advisory solutions in different jurisdictions.
GF: How can Africa deepen its underdeveloped corporate debt market?
Leon: Africa’s corporate debt markets have grown meaningfully over time, but their depth and breadth still vary significantly across countries, regions and currencies. In many markets, the issue is not a lack of demand for capital. This means that the available pool of capital, range of issuers and range of funding instruments are not yet broad or deep enough to meet demand. A major consideration is currency. Many corporates’ revenues are denominated in local currency, yet a meaningful portion of available funding is hard currency-based.
On the positive side, domestic institutional capital is growing and should support deeper and more diversified debt markets over time. This is encouraging, as borrowers are taking a strategic approach to funding, including participation from a broader group of investors and growing demand for solutions beyond traditional bilateral lending.
lover: Equity-market activity remains sluggish. What can Africa do to change this?
Leon: While 2025 was a great year for many African equity markets, we are still seeing a lull in capital raising activity, with companies preferring debt financing or private equity. To change this, Africa needs a mix of structural reforms, market deepening and measures to boost investor confidence. Currently, many markets are underutilized. Exchanges remain small with limited trading volume; It is cumbersome to list; And volatility and sentiment often deter long-term investors. That said, some stock exchanges are highly sophisticated with high liquidity, diverse listings and advanced infrastructure.
To revive equity capital mobilization, Africa needs to strengthen market infrastructure by modernizing its trading platforms and settlement systems and encouraging cross-listing and regional exchange integration. There is also a need for policy and regulatory reforms and strengthening of corporate governance standards. Africa should leverage AfCFTA to create a pan-African capital market and pool liquidity across exchanges to attract larger listings.
GF: How big a role is sustainable finance playing in Africa? Leon: Sustainable finance is a rapidly growing market that provides access to large pools of capital and a diverse group of investors. The RMB is at the forefront of driving this market, having facilitated $12 billion in sustainable and transitional finance. This includes hybrid finance structures to raise capital for early stage projects and innovative technology. The Bank has committed to facilitate $26.8 billion in sustainable and transformative finance by 2030.
