Report: UK Businesses Look to Africa as Strategic Growth Partner – THISDAYLIVE

Kayode Tokede

New research by UK-based Strategy Management Partners has revealed that a growing number of British businesses are identifying Africa as a key strategic growth region – drawn by structural reforms, demographic momentum, and rapid digital transformation across the continent.

The research, based on a survey of senior decision-makers from 250 large UK-based companies, finds that 50 per cent are already active in African markets and planning to expand further. 

An additional 28 per cent, it added, are considering entry, signalling a clear uptick in long-term interest from international businesses with the resources to scale regionally.

The findings challenge outdated perceptions of Africa as a high-risk or secondary market. “Instead, they highlight key drivers behind renewed commercial interest: 61 per cent of UK leaders cited Africa’s large and growing consumer markets as a major draw. Another 61 per centpointed to the continent’s rapid pace of digital and technological adoption. While 50% highlighted the potential of Africa’s young, skilled, and digitally native population,” it said.

The study also suggests that Africa is no longer viewed simply as a market for philanthropic initiatives or short-term gain. 

“Only 20 per cent of respondents cited philanthropic motives, while most are focused on building commercially viable, long-term operations. Initiatives like the African Continental Free Trade Area (AfCFTA), are also laying the groundwork for significant economic growth.  With 23 countries already implementing preferential tariffs, the framework is expected to facilitate smoother intra-regional trade, enable market scale, and support more efficient supply chains. These structural improvements are making Africa more attractive to global firms with the ambition to operate at scale.

“However, despite rising optimism, significant operational and policy challenges remain.  The top four barriers to investment cited by UK business leaders were: political and country risk (68%); safety and security issues (66.4%); regulatory barriers and tariffs (60.4%); and the complexity of cross-border transactions (60%).  Addressing these issues will be crucial to unlocking Africa’s full potential for UK investment,” it added.

“UK businesses are increasingly seeing Africa as a strategic growth market, driven by structural reforms, digital adoption, and the momentum behind the African Continental Free Trade Area (AfCFTA),” says Muibat Ijaiya, Partner at Strategy Management Partners. “But real progress will depend on practical cooperation with African governments. The AfCFTA is a pivotal step forward – what’s needed now is a deeper alignment between public policy and private investment to address trade, regulatory and infrastructure barriers, and unlock long-term, sustainable growth.”

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