Change is happening thick and fast in Africa’s financial services and digital media sectors. The continent launched its first pan-African payment and settlements platform last year, and the South African competition authorities approved two trend-setting transactions with Africa-wide implications – the South African Reserve Bank’s acquisition of 50% of regional payment clearinghouse PayInc and French media conglomerate Canal+’s acquisition of MultiChoice.
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FreepikAnd it seems there is more to come. Despite (and perhaps because of) current macroeconomic volatility and policy uncertainty in the African fintech, and telecommunications, media and technology (TMT) sectors, including a lack of fintech legislation in many jurisdictions and numerous overlapping laws (such as those overseeing data protection, cybersecurity and cross-border trade), these sectors are vibrant and growing.
Fintech
In South Africa, the enforcement of digital markets and governance expectations under the Protection of Personal Information Act (PoPIA) are increasingly intersecting with technology deals, guiding how they are structured and approved. Investment in fintech has been boosted by digital transformation, including financial services tools that are AI-enabled and the increasing uptake of mobile first banking.
Financial institutions are acquiring digital payments infrastructure and embedded-finance platforms to modernise their service offerings and ensure a better return on capital. An example of a recent fintech transaction in South Africa is the Nedbank Group’s recent acquisition of iKhokha, valued at R1.65bn in August 2025.
A further notable development in South Africa's fintech space is the announcement in early February 2026 of Zaru, a rand-backed stablecoin launched by financial institutions Luno, EasyEquities (part of Sanlam) and Lesaka.
Sihle Bulose and Lebogang Molebale 3 days These developments in South Africa reflect broader trends across the continent. For example, Kenya, considered East Africa’s innovation hub, is seeing rapidly rising investor interest in fintech, logistics tech, health tech and data centre infrastructure. The continued buildout of digital infrastructure, coupled with Nairobi International Financial Centre (NIFC) incentives, is reinforcing Kenya’s role as a gateway for regional capital flows.
Mauritius has also strengthened its role as a financial gateway, where the government has a strong mandate to implement ambitious economic reforms, particularly in fintech and digital infrastructure. In Namibia, digital services are expanding, supported by the government's initiatives to boost ICT infrastructure and financial inclusion through fintech platforms.
TMT
A similar pattern of digital evolution, consolidation and regulatory reform is evident in the broader TMT sector. M&A in the TMT sector has been marked by big-ticket multijurisdictional transactions, such as the R56bn mandatory takeover offer by Canal+ of Multichoice, which became unconditional in September 2025. This transaction marked a major milestone in the evolution of the African media sector.
Private equity and alternative financing are playing a growing role in the sector, with the recent expansion of digital infrastructure and cloud computing capacity being driven by both equity and debt investments. There have also been consolidations and divestments of non-core assets to unlock capital for future growth, assisting South Africa to maintain its position as a gateway to African TMT investment.
A raft of new regulatory frameworks is shaping the African TMT legal landscape and assisting to balance innovation and security concerns. These changes are impacting AI, digital payments, crypto-assets, satellite licensing frameworks (to support 5G deployment and the SA Connect agenda) and spectrum deployment.
South African digital roadmap and ownership issues
The TMT landscape in South Africa is also undergoing a regulatory evolution. Last year was a busy one for South Africa’s Department of Communications and Digital Technologies (DCDT).
In May 2025, the DCDT launched the Roadmap for the Digital Transformation of the Government. To drive implementation of this roadmap, a digital service unit will be established to coordinate the government’s effort to modernise services. Part of this is the development of ‘Digital Mzansi’- a unified portal for accessing all government services.
In a closely watched development, the DCDT proposed using equity equivalent investment programmes (EEIPs) in the ICT sector as an alternative for multinationals to comply with the 30% historically disadvantaged persons (HDP) ownership requirement, sparking both opportunity and controversy.
The EEIP proposal potentially introduces a more flexible way for TMT multinationals to comply with HDP ownership requirements, but this will require careful consideration in terms of its alignment with existing empowerment frameworks.
The DCDT also published a Draft National White Paper on Audio and Audiovisual Media Services (AAVMS) and Online Safety for public comment (White Paper).
The White Paper sets out a proposed policy framework to modernise South Africa’s regulation of audio, audiovisual and online media services, in response to the digital transformation of the media landscape, the proliferation of global streaming platforms, user-generated content and the emergence of new online risks such as mis- and disinformation on social media platforms.
The White Paper contemplated a new three-tiered regulatory approach to AAVMS, distinguishing between broadcasting services (linear, scheduled content), on-demand content services and video-sharing platform services.
To ensure an enabling policy environment for increased foreign direct investment, the White Paper also proposed that foreign ownership limitations for broadcasting services be increased from 20% to a maximum of 49% and limitations on cross-media ownership be removed. The DCDT is now reviewing public comments.
Proactive engagement with regulatory authorities remains a key success metric for dealmaking in this rapidly evolving sector.
Final note
As Africa continues to tackle economic headwinds, digital transformation and regulatory reform in its financial services and TMT sectors are unlocking a range of opportunities for dealmakers in 2026 and beyond.
Success will depend on the ability of market participants to anticipate regulatory shifts, engage with policymakers and forge partnerships able to deliver scale and resilience amidst growing geopolitical uncertainty.
