UK Businesses Target Africa for Strategic Growth Amid Digital Boom and Market Reforms

A new study by Strategy Management Partners has revealed that Africa is becoming a top priority for UK-based companies looking for long-term growth opportunities. The report, based on a survey of 250 senior executives from large UK firms, shows that half of these companies are already active in African markets and planning expansion, while an additional 28% are considering market entry. These findings reflect a major shift in how British businesses view Africa, no longer seeing it as a high-risk or secondary market but as a dynamic region full of opportunity.

Key drivers for this renewed interest include Africa’s rapidly growing consumer base, technological adoption, and a young, digitally fluent population. According to the research, 61% of UK decision-makers see digital transformation as a major draw, while 50% are particularly interested in Africa’s skilled youth. These factors combine to present Africa as a fertile ground for innovation and scalable business models, offering significant long-term potential beyond philanthropic or short-term gains.

Notably, only 20% of respondents cited philanthropic motives, highlighting a shift in focus toward commercially viable investments. The implementation of the African Continental Free Trade Area (AfCFTA) is also playing a pivotal role. With 23 countries already applying preferential tariffs, AfCFTA is helping to create larger regional markets, improve trade efficiency, and support integrated supply chains. These developments are boosting investor confidence in Africa as a structured and scalable business environment.

Despite the optimism, the report acknowledges significant challenges. Chief among them are political instability (68%), safety and security risks (66.4%), regulatory barriers (60.4%), and cross-border transaction complexity (60%). Addressing these issues is essential for unlocking Africa’s full potential and ensuring sustainable, long-term investment from UK businesses. The call is clear: strategic cooperation between African governments and foreign investors is crucial to overcoming these barriers.

UK companies are especially eyeing sectors where Africa has natural advantages, including agriculture, natural resources, infrastructure, and digital services. According to Strategy Management Partners, achieving meaningful progress will depend on aligning public policy with private sector interests. Muibat Ijaiya, a partner at the firm, emphasized that while AfCFTA is a vital foundation, deeper collaboration is needed to overcome regulatory and infrastructure hurdles and turn Africa into a truly global business hub.

Source: Leadership