October 28 2025 | Deals | Mergers and acquisitions | Private Equity
Graham Stokoe is the Private Sector Leader for Strategy and Transactions (SaT) at EY. He has led more than 100 buy- and sell-side transaction diligence projects for private capital and corporate clients across Sub‑Saharan Africa.
Joining EY’s Transaction Diligence team in London in 2004 and transitioning to the South Africa team in 2007, Graham has a wealth of experience in M&A, IPOs, carve-outs, and exit readiness.
In this excerpt from our 25 Iconic African DealMakers Report , Graham reflects on his career journey, landmark deals and the future of M&A in South Africa and the broader continent.
You’ve had an extensive career in corporate finance, from starting in a Big Four firm to leading EY’s focus on private equity in Sub-Saharan Africa. What inspired you to pursue a career in corporate finance and M&A?
Back in London in the early 2000s, I wanted to understand what makes a business tick. Due diligence and M&A gave me a unique perspective, analysing multiple businesses in-depth and seeing their inner workings. Having spent time in auditing, I was eager to dive deeper into what drives business performance.
As I got into M&A, I realised the significant impact of facilitating capital flows and investment. This work not only shapes businesses but also drives economic growth. For me, capital flows are like the lifeblood of the global economy, a critical part of its overall function.
You’ve highlighted the importance of trusted transaction advisors. What core values or principles have guided you in navigating complex deals?
Honesty is paramount. As transaction advisers, we dig deep into the details, uncovering the true state of a business, past, present and future. It’s critical to present an accurate and honest picture, even when the findings are tough for clients to hear.
Clients often invest months of effort before engaging us, and they may be emotionally attached to a deal. When the numbers don’t align with expectations, having honest, fact-based discussions is essential. While this can sometimes derail deals, it ensures the right decisions are made at the right time and value.
Can you share one of the most challenging deals you’ve worked on and the lessons you learned?
The Edcon delisting in 2007 stands out. I got involved in 2006 while still in London, and it was a turning point for me, highlighting the dynamic opportunities in South Africa.
The deal itself was massive, but one key learning was the financial services angle. Edcon, primarily a consumer business, had a significant credit card book. When the 2008 financial crisis hit, this credit exposure became a major challenge.
The experience taught me the importance of understanding all facets of a business and reinforced my decision to return to Johannesburg and focus on the local market.
How does deal-making in Africa differ from global markets?
Africa, particularly South Africa, tends to take a more conservative approach. Early in my career, I witnessed deals in Europe with highly optimistic, hockey-stick projections – flat earnings followed by steep growth spikes.
In Africa, credit markets are more cautious. South African banks, for example, rarely leverage deals to the extent seen in European markets during the mid 2000s.
This prudence has served the region well, especially during periods of economic uncertainty. However, the diversity across African markets adds complexity, as deal‑making often involves navigating varying legal, cultural, and economic systems.
Beyond Edcon, is there a deal you consider a favourite, and why?
The Isanti Glass deal is one I’m particularly proud of. It involved unbundling Nampak’s glass business to establish a strong second player in the sector alongside Consol.
Partnering with AB InBev and Kwande Capital, the majority BBBEE investor, was transformative for the industry. I distinctly remember March 2020, right as COVID-19 lockdowns began, being in Johannesburg counting glass bottles.
Despite the challenges, we successfully closed the deal, demonstrating the importance of adaptability in deal-making.
How has private equity contributed to socio-economic change in South Africa?
Private equity has been instrumental in driving growth, particularly in fastgrowing, medium to large privately-owned businesses. These businesses create jobs and impact sectors like healthcare, education and infrastructure, areas where government funding often falls short.
In addition, PE investments have catalysed growth in renewable energy, fintech, and digital infrastructure, fostering broader socio-economic development. While PE remains focused on Africa’s larger markets, there’s growing interest in smaller markets through venture capital and impact investing.
What notable trends have shaped M&A in South Africa over the past two decades?
The journey has been marked by distinct phases. Early on, there was a boom in M&A, followed by the 2007–2008 global financial crisis. Then came the Africa rising phase, with South Africa positioned as a gateway to the continent.
More recently, post-COVID-19 trends include growth in infrastructure, renewable energy, and digital sectors. Government spending hasn’t kept pace in areas like education and logistics, creating opportunities for private capital. Additionally, there’s been greater interest in businesses earning revenues in hard currencies.
Looking ahead, what is your outlook for M&A in South Africa and Sub-Saharan Africa?
Over the next decade, Africa’s youthful population will drive significant economic change. Sectors like education, urbanisation and technology are poised for growth. I expect increased M&A activity in infrastructure, renewable energy and essential services over the next two to four years.
Do you see IPOs becoming more prominent in South Africa?
Not in the near term. South Africa lacks a sufficiently diversified institutional investor base to drive IPO growth. While 2024 saw some listings, most were corporate unbundlings or inbound listings. I expect private equity, private credit, venture capital and family offices to continue playing a critical role in capital flows.
