While global foreign direct investment (FDI) has faced headwinds, several key regions are emerging as powerful hubs for investment and dealmaking, driven by strategic reforms, sovereign wealth deployment, and sector-specific consolidation. Tanzania, the Middle East, and the European banking sector are all experiencing a significant uptick in M&A and investment activity, offering lucrative opportunities for international businesses.

 

In East Africa, Tanzania is establishing itself as an economic powerhouse, according to a report from Daily News. Despite a decrease in global and African FDI flows in 2023, Tanzania’s inflows grew by 5.9% to $1.34 billion. This growth accelerated dramatically in 2024, with FDI reaching approximately $1.72 billion, a 28.3% increase, as noted in the UNCTAD World Investment Report 2025. This performance places Tanzania among the top 15 African nations for FDI inflows, spurred by political stability, economic reforms, and key assets like its logistics infrastructure and critical mineral reserves.

 

The Middle East and North Africa (MENA) region has solidified its position as a global dealmaking hub, with M&A activity outperforming international trends. According to Consultancy-me.com, the total value of M&A deals in the region soared by 87% year-on-year in 2025. Inbound deal values nearly tripled, with major acquisitions in software, healthcare, and aerospace. Simultaneously, outbound deals, largely driven by sovereign wealth funds, grew by 92%, targeting strategic sectors like AI, digital infrastructure, and logistics. Juel Chowdhury, an associate partner at Lumina, noted that this growth has matured regional sectors, making intra-regional M&A a key corridor to watch in 2026.

 

In Europe, the banking sector is undergoing a wave of consolidation. S&P Global Ratings reports that M&A transactions among European banks rose from 183 in 2024 to 219 in 2025, a trend expected to persist into 2026 and 2027. Key hotspots for deals include Italy, the Nordics, and Poland. This acceleration is supported by healthier capital ratios, renewed investor confidence, and a push by governments to sell stakes in previously rescued banks, as lenders use M&A to consolidate domestic markets and expand into new business lines.

 

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