Investment Banker Says Uncertainty Imperils S. African Deals (1)

Fractures within the South African government — along with global macroeconomic uncertainty — are weighing on dealmaking activity in the continent’s largest economy, according to one of the country’s top investment bankers.

Uncertainty about a key vote on South Africa’s budget and what it portends for South Africa’s coalition government have put a damper on business confidence, according to Yasmin Masithela, chief executive officer of Absa Group Ltd.’s corporate- and investment-banking unit. That’s weighed on M&A activity despite the fact that corporate cash piles remain near records, she said.

“There are hardly any infrastructure deals in the ...