Revue - Les Cahiers de l'Arbitrage N°2 - 2023 - 208

AFRICA SPECIAL ISSUE
resilience. In Kenya, for example, several banks are looking to acquire smaller
banks in neighbouring countries such as Uganda and Rwanda. Meanwhile,
international banks are looking at Nairobi as a platform to expand regionally. 30
African banks will also look to acquire assets in the fintech space to expand their
technological capabilities.
As illustrated by White & Case's M&A Explorer, in the two years that preceded
the outbreak of the Covid-19 pandemic, M&A transactions in the financial services
sector in Africa - specifically, African acquirers of African financial institutions -
were one of the busiest sectors in deal value terms over that period, second only
to the Technology, Media, and Telecom ( " TMT " ) sector: 31
M&A activity: Top sectors by value Q1 2018 - Q4 2019
Target location: Africa Bidder location: Africa Sectors: All Sectors
TMT
Financial services
Industrials and chemicals
Energy, mining and utilities
Consumer
Construction
Business services
Real Estate
Agriculture
Pharma, medical and biotech
01234
Deal value (US$ billion)
Source:White & Case's M&A Explorer powered by Mergermarket
Historically, the banking industry globally has not favoured the use of
arbitration to resolve disputes relating to banking activities, instead leaning heavily
on litigation in national courts for such disputes. 32
This unease with arbitration
seems limited to banking activities, however. Indeed, banks seem readily to
accept arbitration clauses in transactions relating to their commercial activities,
e.g. the acquisition of other banks or bank segments, which in turn causes banks
to become involved in arbitrations when disputes arise. Several recent cases
illustrate the point.
30. The Africa Report, Kenya's crowded banking sector is ripe for consolidation, analysts say,
12 May 2021, available at (https://www.theafricareport.com/87723/kenyas-crowded-banking-sectoris-ripe-for-consolidation-analysts-say/).
31.
White & Case M&A Explorer, M&A activity: Top sectors by value Q1 2018 - Q4 2019,
Target location: Africa; Bidder location: Africa; and Sectors: All, available at (https://mergers.
whitecase.com/).
32. ICC Task Force on Financial Institutions and International Arbitration, Financial Institutions
and International Arbitration - ICC Arbitration & ADR Commission Report, 9 November 2016, ¶ 4,
available at (https://cdn.iccwbo.org/content/uploads/sites/3/2016/11/icc-financial-institutions-andinternational-arbitration-icc-arbitration-adr-commission-report.pdf).
482
The
Paris Journal of International Arbitration 2023‑2

https://www.theafricareport.com/87723/kenyas-crowded-banking-sector-is-ripe-for-consolidation-analysts-say/ https://www.theafricareport.com/87723/kenyas-crowded-banking-sector-is-ripe-for-consolidation-analysts-say/ https://mergers.whitecase.com/ https://mergers.whitecase.com/ https://cdn.iccwbo.org/content/uploads/sites/3/2016/11/icc-financial-institutions-and-international-arbitration-icc-arbitration-adr-commission https://cdn.iccwbo.org/content/uploads/sites/3/2016/11/icc-financial-institutions-and-international-arbitration-icc-arbitration-adr-commission

Revue - Les Cahiers de l'Arbitrage N°2 - 2023

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