Why the UK is becoming a base for African tech companies

In March 2026, the UK government released a list of Nigerian tech companies expanding their operations in the UK. This expansion indicates a rising interest among African tech firms in establishing a base in the UK for growth and development. A November 2026 report by TLP Advisory, a cross-border venture law firm, analyzed 100 technology companies across Nigeria, Kenya, South Africa, Egypt, Ghana, and Morocco with ties to the UK, US, and UAE.

The US was the most popular destination for these companies, with 67% of the sample affiliated there. The UK followed at 32%, while 23% had connections to the UAE. These figures suggest that the US, UK, and UAE serve different purposes for African tech companies. The US is preferred for incorporation due to its familiar corporate structures, particularly Delaware-incorporated entities, which are easier to invest in.

However, the UK and UAE are more often linked to companies setting up operational bases and securing regulatory licenses. Roughly two-thirds of the UK-connected companies were incorporated there, while 47% maintained an operational presence. Eighty-four percent of these companies held regulatory licences, compared to only 3% and 4% of US-connected and UAE-connected companies, respectively.

Nigerian companies account for a significant portion of the UK regulatory licensing connections, primarily in the financial services sector. This trend can be attributed to the capital and regulatory access opportunities available in the UK. The UK has tax incentives to encourage investment in early-stage businesses, such as the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS).

Additionally, the government has introduced programs like the Global Entrepreneur Programme and Innovator Founder visa to attract international entrepreneurs and businesses. The Financial Conduct Authority in the UK oversees various financial services activities, providing a robust regulatory framework that attracts African companies seeking a stable environment for their operations.