UK firms eye Africa as next frontier for strategic growth

Many businesses in the United Kingdom are turning to Africa as a strategic growth partner. This signals a shift from outdated risk perceptions toward a more opportunity-driven outlook on the continent. This is according to new research released by UK-based consulting firm, Strategy Management Partners.

The study, based on a survey of senior executives from 250 large UK-based companies, finds that 50% of respondents are already active in African markets and planning to expand, while another 28% are considering entry—a clear sign of rising long-term interest among companies with the capacity to scale across regions.

These findings challenge long-held views of Africa as a secondary or philanthropic market, replacing them with a data-driven perspective on its commercial potential. Executives pointed to several compelling growth drivers: 61% cited Africa’s large and growing consumer markets, while an equal number were drawn by the continent’s rapid digital and technological adoption. Additionally, half of the respondents highlighted Africa’s young, skilled, and digitally savvy population as a major factor in their strategic considerations.

“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),” said 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.”

The report also highlights a marked shift in mindset. While in the past Africa may have been seen primarily through the lens of aid or philanthropy, today’s UK business leaders appear focused on building sustainable, profitable operations. Only 20% of respondents cited philanthropic motives, signalling a more mature investment outlook centred on long-term value creation.

One key catalyst for this change is the implementation of the African Continental Free Trade Area (AfCFTA). With 23 countries already applying preferential tariffs, the agreement is unlocking intra-African trade, improving supply chain efficiency, and creating larger, more integrated markets—making the continent increasingly attractive for global firms seeking scale.

Yet, despite the rising optimism, UK companies remain cautious about several operational and policy challenges. The top four barriers to investment include political and country risk (68%), safety and security concerns (66.4%), regulatory hurdles and tariffs (60.4%), and the complexity of cross-border transactions (60%). Tackling these systemic issues, the study notes, will be key to fully unlocking the continent’s potential.

The sectors drawing the most attention from UK businesses are those aligned with Africa’s core strengths: natural resources, agriculture, infrastructure development, and a growing youth population. These areas are seen as the foundation for building local supply chains, expanding digital services, scaling manufacturing, and responding to rising consumer demand.

According to the survey, the top enabling factors influencing investment decisions include market size and consumer demand (49.6%), reliable and consistent energy supply (48.4%), access to affordable, educated talent (44.8%), and efficient transportation infrastructure (38%). Macroeconomic stability—including low interest rates, low inflation, stable exchange rates, and smooth cross-border capital flows—was also cited by 38% of business leaders as essential for sustained engagement.

The research, titled Africa’s Inflection Point: Navigating Opportunities Amid Challenging Structural Realities, provides a nuanced understanding of how Africa is increasingly viewed as a viable long-term growth market by established UK firms.

Commissioned by Strategy Management Partners and conducted by Censuswide in the first quarter of 2025, the study surveyed decision-makers across a cross-section of sectors including IT, telecoms, finance, healthcare, utilities, and manufacturing. All participating firms had annual revenues exceeding £20 million and active international operations.

As global businesses seek new frontiers for growth, Africa is firmly back on the strategic map—with its scale, youthful talent pool, and digital momentum offering the kind of transformative opportunity that few other regions can match. Whether UK firms succeed in translating interest into impact, however, will depend on how quickly remaining barriers are addressed through coordinated public-private action.