Why African Tech Companies Are Building Their Base in the UK

By Grace Kim

The UK had documented affiliations with 32% of the 100 African technology companies reviewed by TLP Advisory in November 2026, behind the US at 67% and ahead of the UAE at 23%.

TLP Advisory, a cross-border venture law firm, examined companies across Nigeria, Kenya, South Africa, Egypt, Ghana and Morocco with documented ties to the UK, US and UAE.

Why are African tech companies choosing the UK?

In March 2026, the UK government published a list of Nigerian companies expanding operations in Britain, including fintechs Moniepoint, Kuda and LemFi. The government announcement tied the expansion to hundreds of new UK jobs and millions in investment.

TLP Advisory’s data shows why Britain attracts more than a mailing address. Of the UK-connected companies, 84% were incorporated in Britain, 47% maintained an operational presence and 19% held regulatory licences. By comparison, only 3% of US-connected companies and 4% of UAE-connected companies held licences.

The US remains the incorporation hub. TLP Advisory attributed that pattern to familiar corporate structures, particularly Delaware incorporation, which makes companies easier to invest in. Eighty-one percent of US-connected companies in the sample had no recorded US link beyond incorporation.

TLP Advisory found that the UAE skewed toward operations, with only 13% of UAE-connected companies having incorporation as their sole link. Nigeria accounted for roughly two-thirds of the UK’s identified regulatory-licensing connections, with most involving financial services.

The UK’s edge is that it combines three functions: registration, operations and regulated activity in one market.

Why do currency and customers matter?

TLP Advisory’s earlier research found that more than 76% of funded Nigerian startups surveyed had raised capital in US dollars. The firm also cited a 71.19% depreciation of the naira between September 2023 and September 2024 and inflation of nearly 33.9% in October 2024.

Under TLP Advisory’s analysis, a Nigerian fintech that raises dollars while earning dollars still faces a currency mismatch because depreciation makes dollar obligations more expensive to manage.

Britain also gives African fintechs access to established diaspora markets. The 2021 UK Census recorded more than 270,000 Nigeria-born residents in England and Wales. IntelPoint reported that Nigeria received about $22.8 billion in personal remittances from the diaspora in 2025. TLP Advisory said businesses with links to Ghana, Kenya and South Africa can draw on similar diaspora and commercial connections.

Those relationships can supply an initial customer base for remittance and payment companies. A UK presence may let a company serve both sides of a money-transfer corridor, though reaching those users at scale still requires partnerships and regulatory approval.

Diaspora demand gives remittance firms an initial customer base, but scale still depends on approvals and partners.

Does one licence open both markets?

One licence does not automatically open either market. TLP Advisory’s country comparison shows why regulatory geography matters.

The Financial Conduct Authority oversees a range of financial services activities through a national regulatory framework in the UK. US money transmission, by contrast, requires licences state by state across 49 states and Washington, DC. A licence in one state does not carry into another.

In the UAE, mainland payment companies need Central Bank authorisation. Companies in the Dubai International Financial Centre and Abu Dhabi Global Market operate under separate regimes, and their licences do not automatically permit payment services across the UAE.

A licence is geographic, so companies must build regulatory coverage for each market they intend to serve.

Can founders raise capital at every stage?

The UK government is positioning Britain as a funding base from early formation through scale. The Seed Enterprise Investment Scheme (SEIS) provides tax relief to investors who back qualifying companies. SEIS covers the first £250,000 a company raises, provided the business has fewer than 25 employees and under £350,000 in gross assets. The Enterprise Investment Scheme (EIS) takes over for larger rounds.

Both SEIS and EIS require a genuine UK operational presence. They also exclude banking, money-lending and other financial activities.

The government’s Global Entrepreneur Programme supports selected international entrepreneurs establishing a UK headquarters or research and development presence. Its Innovator Founder visa requires endorsement and eligibility approval.

TLP Advisory said more than 110 African companies were listed on the London Stock Exchange. It cited Airtel Money’s October 2026 start on the LSE Main Market at an approximate £5.3 billion valuation. Its market comparison also points to Jumia’s 2019 listing and OPay’s planned $304 million New York IPO, which the company withdrew in October 2026 after a regulatory inquiry.

London is revising its listing rules and launched the Private Intermittent Securities and Capital Exchange System (PISCES) sandbox in 2025. PISCES lets investors buy shares in eligible private companies and existing shareholders sell at scheduled intervals without taking the company public.

The UAE competes through free zones and regional trade. Abu Dhabi’s Hub71 offers selected startups up to AED 750,000, subject to programme conditions, while the country’s financial centres cater to Middle East-facing operations.

The UK’s offer combines capital, a national regulator, diaspora demand and a mature services ecosystem; TLP Advisory still sees the US as the venture-finance hub and the UAE as a Middle East base.

What does a UK operating base cost?

TLP Advisory said a UK operating presence requires customers, employees, licences, local partnerships and sustained spending. It also brings legal, tax, reporting and compliance costs. A British entity does not guarantee a substantial British business.

Moniepoint’s UK subsidiary reported a £1.2 million loss for 2024, its first year of operation, before generating revenue in the country. The company attributed the spending to the infrastructure, technology and compliance systems needed to enter the market.

Moniepoint’s accompanying image shows a merchant processing a card payment at a retail shop. It says the UK business made $36,284 after taking on MonieWorld customers.

African fintechs’ next expansion decisions will turn on whether UK licences, customers and capital can offset legal, tax, reporting and compliance costs before the operating base pays for itself.